Car Insurance & Company declaration for business travel coverage!!

sujsuj

My company want me to confirm my Car insurance covers business travel. ie travel not just  normal place of work but occasional travel to  other locations as well. I am not into trade or anything, but doing  normal office job.

But  my car Insurance policy have this statement -

EXCLUSIONS - The policy does not cover use for any business purpose, any purpose in connection with the motor trade, carriage of any passengers or goods for hire or reward, or for hiring, racing, competitions, ralies, trials, pace-making or speed testing.Use to secure the release of a motor car, other than the vehicle identified above by its registration mark, which has been seized by, or on behalf of, any government or public authority.

What should I do..?
Or am I misinterpreting the policy statement..? Please help. thanks

SandyShores

I have to provide my employer with a copy of my insurance which states business travel is included otherwise I can't claim any business travel mileage.  I phoned my last insurer to clarify the policy I had with them and they said their standard insurance covers for driving to a single place of employment, but if I wanted to drive from the first office to a second office (between offices) then I would need to add business use.  It's not expensive to add on when you take out insurance, but I seem to remember when I added it on part-way it was around £40.  Possibly depends on the number of business miles you expect to do.

zagfles

Normal car insurance doesn't cover business use. If you ever drive on business, including eg visiting customers, or other company offices which aren't your usual place of work, you need at least "class 1" business use. It's usually not much more expensive, IIRC mine was around £10 more to add business use. Phone your car insurance and get it added, and don't drive on company business until it is added!

See https://www.comparethemarket.com/car-insurance/content/classes-of-use-and-car-insurance/

Aretnap

When you take out car insurance you will normally be asked what you use the car for:

1. Social, domestic and pleasure only
2. Social, domestic, pleasure and commuting (to a single regular place of work)
3. Social, domestic pleasure and business use (travelling to multiple places of work or business)

Presumably you didn't tick box 3? In which case your policy won't cover you to drive to places of work other than your usual one. You need to add business use or you'll be driving without insurance (which is why the company wants to check you have the right cover).

As above the extra premium for adding business use is often pennies or even zero, though there will probably be an admin fee to add it mid term. So it's worth adding it as a matter of course if there's any possibility that you might need it rather than waiting until you actually have to work at a different office one day.

Flugelhorn

I used to get the "class I business use" and it was either the same price or a pound or so more than the standard - and yes employers want to see it if you are using the car during the day to visit people / places etc etc 

Bigphil1474

OP, if you aren't driving for work in any capacity, you don't need business cover, just SDP& commuting. Presumably, if they've asked for it, then they are expecting you to drive for work at some point. As others have said, if you are just driving from site to site for work, Business Class 1 use is your man - I've had it for 28 years and it makes little difference to premiums. 

daivid

Phone your insurance company if you are in doubt, though it sounds like you will need typical business cover (or to not use your car beyond commuting). The exclusions are to stop people using the cars for higher risk activities on a standard policy. I have business use of up to 1000 miles for occasional travel to courses or to meetings at another site. When I've bothered to check it's made zero or near (<£2) difference to my annual premium, changing mid term may incur an administrative cost - for some providers these are reduced or waived if the change is made online rather than be phone.

sujsuj

I am very surprised with this. I am not travelling every other day to a different locations like some business which need extensive travels. Mine is once in a month or once in 2 months  travel to a different location to attend meeting etc. Its not that I am travelling from my normal work location to another location, I am travelling from home to work location #2. 

Looks like may be people misusing policy so insurance companies stamping on this to make more money. once in a month or once in 2 months  travel  need special coverage...its crazy.

Trouble now is most companies charge £100 to mid policy changes,..let me see. Mine is Tesco Car Insurance

sujsuj

added online  to Tesco Car Insurance, costed £7 only.
I think any working person need to add this business travel option by default I think.

DullGreyGuy

sujsuj said:

I am very surprised with this. I am not travelling every other day to a different locations like some business which need extensive travels. Mine is once in a month or once in 2 months  travel to a different location to attend meeting etc. Its not that I am travelling from my normal work location to another location, I am travelling from home to work location #2. 

Looks like may be people misusing policy so insurance companies stamping on this to make more money. once in a month or once in 2 months  travel  need special coverage...its crazy.

Trouble now is most companies charge £100 to mid policy changes,..let me see. Mine is Tesco Car Insurance

Other than most insurers dont charge anything more for Business Class 1 or 2 to standard SDP&C which somewhat blows the idea it's a profit making scam out the water. Class 3, which is more your travelling salesman where being on the move is a fundamental part of the job, can come with higher premiums but still not much... obviously your mileage will also be higher and theft risks from samples etc can add to the premiums. 

At the start of the policy year thing ahead on what might happen. I've always added Class 1 because it was normally free or certainly under a few quid and so much better to have it and not use it then incur costs for a mid term adjustment 

SiliconChip

sujsuj said:

I think any working person need to add this business travel option by default I think.

This is what I did when I was working and there was even a remote possibility of having to use my car for business purposes, the cost was minimal (or even zero) so even in the years when it was never used it was better to have it from the start of the policy than to need to add it at a later date.