Guide to Business Auto Insurance – Forbes Advisor UK



Do you use your car for work? If you drive to different places in the course of your job, you will need to purchase professional auto insurance.

This type of insurance gives you additional coverage over standard auto insurance and ensures that your vehicle is covered at all times.

What is professional auto insurance?

You need professional car insurance if you drive your own car for professional reasons as part of your job.

Commercial reasons can mean:

  • lead to business meetings
  • move between the different sites or offices of your company
  • trips to customers
  • give co-workers elevators for everything related to work
  • drive to conferences or work-related events
  • go shopping related to your job

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Choose from a range of policy options for affordable coverage that’s right for you and your car.

Who needs professional car insurance?

You need professional auto insurance if you use your car for business purposes.

You can use your own car for business purposes whether you are employed or self-employed.

However, you don’t need professional auto insurance if you only use your car to get to and from work.

What is commercial auto insurance?

It is important not to confuse professional auto insurance with commercial auto insurance.

Commercial auto insurance is for vehicles where driving is a key component of the job. For example, you could be an Uber driver, delivery driver, or driving school instructor. Taxi drivers can also take out specialized taxi insurance.

What is company car insurance?

If you have a company car provided by your employer, you will not need company car insurance. This is because your car needs to be insured by your company – but just check to be on the safe side.

How to get business insurance quotes?

When you get a car insurance quote, the insurer will ask you what you will be using your car for. It is important to answer this question honestly, otherwise you may find that your policy will not pay in the event of a claim.

The auto insurer will normally offer you three options:

  • social, domestic and pleasure (SDP)
  • social, domestic and pleasure, and commuting (SDP & C)
  • commercial use (SDP & C and commercial use)

If you choose business use, most insurers will ask you more questions about this. Your answers will mean that your coverage normally falls into one of the following three categories.

  • Business Class 1: This covers travel to other offices or sites, meetings or business trips (i.e. bringing money to the bank).
  • Business Class 2: This covers everything in Business Class 1, but also allows you to add a named driver who can do the same.
  • Business Class 3: This coverage class is designed for people who frequently travel between business locations. For example, you could be a salesperson in the field.

Is Company Car Insurance Expensive?

Adding business use will affect your auto insurance premium.

This is because people who use their cars for business tend to drive more miles than other drivers – and this driving is likely to be on more traveled and possibly unfamiliar roads.

All of these factors mean that you are more likely to be involved in a car accident and make an insurance claim. If you are considered more likely to make a claim, your insurance premium will cost more.

The amount of professional auto insurance costs will depend on:

  • the make and model of your car
  • the nature of your commercial use
  • how many professional and social miles will the car make
  • who will drive the car
  • where you live
  • where you park your car at night
  • your claims history and driving record
  • your occupation.

If you drive for business, don’t be tempted to omit this information when purchasing auto insurance.

If you only have SDP or SDP plus coverage for commuting and you have an accident, you may find that you are not covered. Not only will the insurance not pay, but non-disclosure could be considered a criminal offense and make it very difficult to purchase insurance in the future.

How to find the best professional auto insurance?

You should seek quotes from different insurers before purchasing professional auto insurance. You can do this by contacting insurers individually or by using a price comparison service.

To save money, you need to buy a car in a low insurance category and make sure it has approved safety devices like an alarm or immobilizer.

The amount you pay for professional auto insurance will depend greatly on your driving history. The cheapest coverage is available to people who haven’t made many, if any, claims on their auto insurance before.

You can also reduce the amount you pay by keeping a clean driver’s license.

Compare auto insurance quotes

Choose from a range of policy options for affordable coverage that’s right for you and your car.


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