Car insurance | business travel - car allowance

sophieelbourn

Hi everyone, I’m looking for some advice and would really appreciate your input.

I currently work for a corporate employer and receive a car allowance. The driver compliance company has advised that my car insurance needs to include business travel, but at the moment, it only covers personal use. I’m happy to update my policy if needed, but I’d like to understand the reasoning behind this requirement.

For context, my role is fully home-based. I don’t travel to client sites or transport clients, and the last time I went into the office was in August 2024, which I reached by train.

If anyone can shed some light on this, I’d be really grateful. Thanks in advance.

DullGreyGuy

So you currently have SD&P or SDP&commuting? If its the later moving to business class 1 is likely not to cost much at all, other than if you change mid policy in which case the admin fee may apply and likely to be much more than the change in premium. 

Employers have a duty to ensure its employees are properly insured if they are going to be using their vehicle for business purposes. Given your permanent location is home then any time you used your car for something work related would require business use cover, such as going to an office, taking something to the post office to post for work etc. 

How did you get to the train station in August? If you drove there then that would have been business use.

Back in my employee days you could sign a declaration that you would never use a vehicle in any way connected to work (inc driving to the train station etc) and therefore avoid having to have business use insurance however the declaration did state it was gross misconduct were you to subsequently use your vehicle. 

jackrack

My insurance strangely was £50.00 cheaper when adding business on to it

daveyjp

As you receive a car allowance it will be company policy to use some of that payment to have appropriate insurance cover.  

Don't assume it means paying more.  My daughter has just purchased her first car and adding business cover for all three drivers made no difference to the price.