Company car insuarance

doningtonphil

Hello, we are a small business that provides 1x leased car for our Sales manager.


We started leasing in July last year. I can't remember the reason but our company took out an Insurance Policy through a broker a Royal & Sun Alliance BUSINESS CAR policy. The latest renewal is for £900.


The company wishes to pay for the Insurance rather than the individual.


I have just done a search on Compare The Market and entered all the details that it was a Company Lease Vehicle and it will be used for business by any of the named drivers and it is offering regular policies with prices around the 300-400 mark.


MUST we have a 'Business Car' policy (is it something to do with the business paying for it) or can we just use one of these regular policies?


I hope you can help


Regards

Aquamania

doningtonphil wrote: »

Hello, we are a small business that provides 1x leased car for our Sales manager.


We started leasing in July last year. I can't remember the reason but our company took out an Insurance Policy through a broker a Royal & Sun Alliance BUSINESS CAR policy. The latest renewal is for £900.


The company wishes to pay for the Insurance rather than the individual.


I have just done a search on Compare The Market and entered all the details that it was a Company Lease Vehicle and it will be used for business by any of the named drivers and it is offering regular policies with prices around the 300-400 mark.


MUST we have a 'Business Car' policy (is it something to do with the business paying for it) or can we just use one of these regular policies?


I hope you can help


Regards

You'd probably be best off asking this on the insurance board.

If the vehicle is used for business, it must be insured that way.

I've not looked at the comparison sites for this type of insurance recently, but it really would surprise me if you as a business could insure a car for your employee to drive via them. Espcially at just £300-£400 a year.
Usually it needs referring. It's quite specialised insurance and not what the comparator sites are set up for (which is for individuals to insure as the policy holder cars they own or lease - even then declared business use can throw a few wobbles)

What may be cheaper if for the individual to insure the vehicle and you reimburse him. This only works if the employee agrees, and has some accrued no claims bonus. (This way it has the benefit of him keeping/improving his NCB). It probably won't work if any other employee may drive the car as any claim will affect his insurance. You will need to check the terms of the lease too, but it would be possible if you owned the car.
Such insurance will still usually need referring as the policyholder will not own or lease the vehicle in question.

doningtonphil

thanks


i have stated that it is for business use by all named drivers. I have stated that it is owned by the company (leased).


I can only imagine that if a comparison site is asking questions about who owns the car, is the keeper of the car and if it will be used for business, then provided you answer accurately the prices it provides should meet the criteria