Conditions for application
Conditions vary between providers, but you usually need to inform your provider during the application process, if you plan to drive your vehicle for business use.
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
Updated . What changed?
If you use your car for business purposes, whether it’s a work van, delivery truck, a part-time taxi etc, it’s a good idea to consider getting car insurance for business use. Standard consumer car insurance policies often don’t cover a vehicle while it’s being used for business purposes, which can lead to insurers denying a claim.
Business-use car insurance is for when you drive the same car for business and personal use and is a way of extending a standard policy, so it provides cover when you drive for business purposes. Company cars, or cars which are only used for business purposes usually require commercial car insurance.
Conditions vary between providers, but you usually need to inform your provider during the application process, if you plan to drive your vehicle for business use.
When you take out a car insurance policy, you often have the option to select “business” use during the application process. An insurance application might ask whether you:
Most comprehensive policies automatically exclude cover, if you use the vehicle for:
If you do not specify that you use the vehicle for both personal and business driving, the policy may not cover you at all while driving for business purposes, and the insurer might decline any resulting claims. By selecting business use during application, your policy may include additional cover, such as:
When your vehicle is essential to your income, for other than just driving to work, you probably need a car insurance for business use policy. For example, if you carry passengers for pay, that is a business purpose, or if you sometimes use your car to transport construction materials to a building site that is also a business use.
Cars that are used for business purposes tend to be on the road more frequently, which makes a significant difference to the likelihood of being involved in an accident. As such, it generally costs more to insure a vehicle for personal and business use than it does to cover it for personal use alone.
A vehicle can face additional risks to those of being driven for everyday use. For example, most people never drive their car onto a construction site or carry potentially hazardous cleaning materials in their vehicle, while you might do it every day.
Insurance providers determine the cost of a business-use vehicle policy by the policy options you select, and factors such as:
You will typically find the same standard exclusions as most other car insurance policies, with a few additions. You may not be able to claim for:
With car insurance for business use, insurers are more likely to understand you do not necessarily have complete knowledge or control of your employee’s actions. Depending on the policy, the provider may still provide partial cover when you weren’t driving the vehicle, but your employee:
If you’re insuring a single car for business use, there’s nothing stopping you from allowing employees to drive it. All you would have to do is list them on your policy as listed drivers. If you don’t have them listed, then you would have to pay an additional excess called an unlisted driver excess if one of them causes an accident. This would be placed on top of your standard excess.
However, if you have a fleet of cars and multiple employees driving them, business use car insurance would no longer be adequate and you’d need commercial car insurance instead.
The right policy should meet all three of your fundamental needs:
Most comprehensive business-use policies are suitable for personal driving use, so you can pay particular attention to matching the cover to your business. For example, a travelling salesperson might expect long-distance driving and frequent starting and stopping; while a builder may be more interested in protection from the risks associated with driving onto a construction site. Consider:
Cars, trucks, vans etc. used for business can be insured under this policy type. The type(s) of vehicle you require cover for may have a further impact on cost and protection.
It’s possible a standard car insurance policy is adequate, but you should check the exclusions to find out whether the policy still covers you for driving the car for business purposes. If you have more complicated business needs or want cover for multiple vehicles, it might be worth consulting a car insurance broker, so they can help find the right level of protection for you and your livelihood.
Renting a vehicle to drive with Uber gives you an easy way to get an eligible vehicle as well as have your insurance covered. Find out how it works and how to sign up today.
Whether you’re eating out or checking out the local attractions, here’s what’s open in Dunedin to keep you entertained.
Discover what’s open and what’s not in Auckland so you don’t get caught out when planning your day out.
What you can get up to in Wellington now that restrictions have eased and restaurants, activities and shops are reopening.
Learn about the used car buying process, including what you need to check on the car and what financing options are available.
FansEdge most likely has what you’re looking for whatever your sport. It has a great range and great prices.
Kiwis can boost their annual earnings by thousands of dollars by making use of their assets, time or skills, according to new research by Finder, a financial research and comparison site in New Zealand.
Want to make more money in 2021? From a new side hustle to shopping around for the best deal, we show you how you can make up to $15,000.
Kiwi drivers may be putting themselves and others at risk by not taking out car insurance, according to new research by Finder, a car insurance comparison website in New Zealand.
Here’s everything we know so far about the Innoviz Technologies IPO.