Car insurance when driving clients as part of job

noelphobic

I am in the process of applying for a salaried job with a charity. If I am successful then a large part of the job will involve driving clients from hospital back to their own homes, using my own car.

I don't currently have business insurance on my car and looked to see how much this would cost. I was pleasantly surprised to find that it would only cost an extra £12 per year. However, someone said that if i was transporting clients, rather than just driving myself to and from their homes, then I would require extra insurance. That does make sense I suppose. Can anyone confirm whether that is the case and if it is likely to mean paying a lot more?

It is only part time and not very well paid so I would have to consider if it was worthwhile, unless the employer bore the cost. I have googled but can't find anything at the moment.

Any advice would be really appreciated, especially from anyone who has experience of this through doing/having done similar work.

Buzby

Class 1 business use is pretty cheap - but not for carrying passengers as if you were a taxi. Some insurers hike prices others may not if it is charitable, so the only way to find out is to get a broker to run a quotation for you. Online services are not specialist enough. In addition you may also need separate public liability insurance.

Marktheshark

Most simple extension cover you for use in your own business.
As said, I think you need class one for use for someone else's business and probably hire and reward extension for transporting clients of that business.

If the business plan was viable, they would provide a car.

noelphobic

Marktheshark wrote: »

If the business plan was viable, they would provide a car.

I would definitely prefer that but the job description states that you have to use your own car.

noelphobic

Buzby wrote: »

Online services are not specialist enough. In addition you may also need separate public liability insurance.

Hadn't considered public liability insurance but would think the charity would cover that if it is needed.

Marktheshark

Is the remuneration enough to buy a new car every 3 years ?
Otherwise you will be using your capital as in your car to subsidise someone else's business.
I would start by finding out what the executive board pay themselves.
It might focus your thoughts on just to what point you are prepared to dig deep and bail in with them.
Charities are still businesses.
When your car is broken down in need of replacement, will they want to know then or just advertise for the next mug with a nice shiny car to use until it drops apart.

InsideInsurance

Buzby wrote: »

In addition you may also need separate public liability insurance.

Why? They say they are an employee so their actions are covered by their employers cover

Class 1 business cover is fine for you driving around for business and even carrying colleagues but not typically for carrying clients/ general public.

Personal motor insurers do not normally offer a hire and reward extension to their policies and so you'd be looking at getting a proper business policy rather than a business extension to a private policy.

I'd probably call a local broker, not swintons, and see what they can do for you. Alternatively if it is a reasonable sized charity/ has multiple drivers see if they have or would consider getting their own policy that would cover you for this - though youd be in a bit of a pickle if they forgot to renew it or there were indemnity issues etc and you had a claim

rs65

InsideInsurance wrote: »

Class 1 business cover is fine for you driving around for business and even carrying colleagues but not typically for carrying clients/ general public.

Personal motor insurers do not normally offer a hire and reward extension to their policies and so you'd be looking at getting a proper business policy rather than a business extension to a private policy.

I don't see this as being hire and reward.

Do you have any reference for class 1 not cover the carrying of clients? If you went to visit a client are you saying you couldn't drive them to a restaurant for lunch?

What would you regard as a 'proper business policy'?

InsideInsurance

rs65 wrote: »

I don't see this as being hire and reward.

Do you have any reference for class 1 not cover the carrying of clients? If you went to visit a client are you saying you couldn't drive them to a restaurant for lunch?

How is it not? They are explicitly being paid to carry people its not that they are just doing a one off favour of bringing a client to a restaurant for a bit of social bonding

For example: http://www.shropshiretourism.co.uk/email/STMEM/Carrying%20Passengers%20and%20Transporting%20Luggage%20guidance.pdf

Operating licences
If transporting your customers is an integral part of your service and allows you to conduct your business activities in the way that you do, or if you want to regularly offer lifts, then you will need a special operating licence and appropriate insurance.

Business motor insurance
If you occasionally give lifts to and from your place of business in your personal car for no fee (or just covering petrol and wear and tear, but no additional costs or the cost of your time) or you transfer customers luggage or belongings then you’ll need to make sure your motor policy covers you for Business Class 1 (if just you do the driving in your own car) or Business Class 2 if you and other named drivers do the driving. Most insurers offer this type of insurance and
many include it for free in your existing motor policy.

If you provide a taxi service you will need a special “hire or reward” class of insurance not offered by general insurers.

The OP says their job is to carry clients around and so clearly it does not fit into the just occasional lifts section of needing Class 1 and thus its hire or reward - their salary being the reward they are receiving.

rs65

InsideInsurance wrote: »

How is it not? They are explicitly being paid to carry people its not that they are just doing a one off favour of bringing a client to a restaurant for a bit of social bonding




The OP says their job is to carry clients around and so clearly it does not fit into the just occasional lifts section of needing Class 1 and thus its hire or reward - their salary being the reward they are receiving.

Their job isn't to carry clients around. Part of their job is to carry clients. They are not explicitly being paid to carry people - they are being paid a salary to do a job. Just because its not class 1 doesn't automatically mean its H&R. Anyway I'm still not convinced its not class 1.

I would be much happier believing you if you quoted something like the RTA rather than Shropshire Tourism.

Are you not covered for taking a client to lunch? A reference from your policy would be better than a tourism site.

What would you regard as a 'proper business policy'?

Quentin

Not just a tourism site but worse a council tourism site!

What a reference library they must have at inside's insurance emporium!

This example gives us loads of confidence.