When taking out car insurance, the insurer will determine your risk profile which in turn informs your premiums. If your risk profile is not accurate, then your insurer can reject claims made on false assumptions. If you use your car for business, for example, but insure it under private use, your risk profile will be inaccurate and your insurer can reject your claims.

Your business insurance car and private insurance car have very different premiums as a result of the different risks associated with each. The conditions of your insurance policy stipulate that the terms are agreed to if the information provided is accurate.

Business insurance car

If you use your vehicle during work hours to conduct business then you must insure your car for business use. Even if your business insurance car is also your private insurance car (that is, you use your business car for private use), you must insure it for business use.

If your car is insured for private use and you have an accident while on the way to see a client or drop off supplies, then your insurer has the right to reject your claim as you did not provide the correct information for them to adequately measure your risk profile.

Private insurance car

Private insurance use includes traveling to and from work every day. Using your car for personal reasons and driving to work allows you to take out private car insurance. The premiums of a private insurance car are much lower than those of a business insurance car because of the reduced risk.

A private insurance car spends less time on the road as it is parked during working hours. This means there is less chance of the car being involved in an accident, which is a prominent contributing factor of your insurance premiums. There’s no way around business car insurance, unfortunately. But that doesn’t mean you’re forced to pay high premiums. Comparing short-term insurance is one of the easiest ways to reduce the amount you spend on car insurance. Our market is competitive enough to make comparing insurance worth the time.

Click here to compare business car insurance.