A closer look into Business car insurance

by Startacus Admin
If you plan to use your car for your business, you'll need business car insurance - here are some of the key things to consider
Do you make use of cars as part of your business? If so, this will mean researching into a different type of insurance than ones used on vehicles for personal use. Usually these could be costly, but in the long run more extensive cover could lead to overall cost savings.
Much like ordinary insurance, the cover you can expect will very much depend on your policy. Experts such as ALA, provide extensive advice on the multiple policies and other extra cover you may want to take into consideration. Let’s dive deeper into this subject and shed some light into what a business should take into consideration:
Three numbered classes:
There are three numbered classes of business insurance, which will help you identify into which class your business falls into:
Class 1: the first class covers daily work commute and also any business trips that involves the use of a vehicle. Worthy to note, not all commuters will require business insurance, thus this will very much depend on your business needs.
Class 2: includes all aspects of class 1 with the exception that you will have the option to add a second driver to the policy.
Class 3: this class is most appropriate for high-mileage drivers, whose job requires driving from city to city (or longer distances). But beware this does not include workers such as: delivery drivers, taxi drivers or chauffeurs – these require more specialized forms of insurance.
Other cover and Add-ons
Most people tend to shy away from considering add-ons and extra cover as it may be considered a waste of money. However some of these extras might prove to save your business money long-term, nonetheless consider your business needs before opting for any extra cover. Here are some add-ons worth considering:
Personal Effects Cover: This particular add-on will ensure that all items in the car are covered. However, beware of possible limitations depending on your business. There is usually a hard cap on this cover so if you’re transporting expensive tools/items be sure to have fully understood the limits of your cover.
Alloy wheel insurance: Designed to keep your tyres on top condition and your car looking its best, alloy wheel insurance covers damage to the car’s wheels which is common through scuffs and scratches with parking often being the main reason that the alloys be-come damaged. This damage is usually only cosmetic, but it can bring down the tone of the car and could make it harder to sell the automobile. Claims on these policies are either free or a very small fee with a maximum payout usually up to £200 a wheel with a limit of a few repairs a year.
Personal Injury Cover: If you feel that you or anyone within your business is particularly vulnerable, then this add-on might be worth considering. This cover will bump up the standard level of injury compensation up to around £100,000.
When making business insurance arrangements it is worth doing proper research; look to specialists for advice and ensure the decision is financially sound and appropriate for your business.
Subscribe to our newsletter
If you would like to receive our startup themed newsletter, full of the latest startup opportunities, events, news, stories, tips and advice, then sign up here.
Got a business in the manufacturing sector? These tips on how you can reduce energy costs while being more sustainable are well worth a read...

Innovative InsurTech startup SureIn announces a €4M Seed round to further its mission of making insurance easy, transparent and hassle-free for SMBs.

Nassia Skoulikariti, Director of IoT Programmes, Mobile Ecosystem Forum shares some insights on how IoT is having a significant impact on all our lives.

Roger James Hamilton, Founder and CEO of Genius Group, a world-leading entrepreneur Edtech and education group, discusses how introducing a globalized curriculum will help better prepare students.

SuperFi, the debt prevention platform, has announced a $1m pre-seed funding round to support people during the cost of living crisis.

41 startups from 13 countries, including the UK, have been selected for the 8th Kickstart Innovation program, one of Europe’s leading innovation platforms.

Personal training platform Another Round has secured £300k in its latest fundraise, including investment from angels and its community.

Thingtrax Secures £4.3M to Empower Manufacturers to Build the Factories of the Future

A measure of inflation relief for small firms sees transport costs fall but service price increases remain elevated

Bedfordshire-based HR tech startup HR DataHub has built a range of tools for HR departments
Published on: 27th October 2020
If you would like to enable commenting via your Startacus account, please enable Disqus functionality in your Account Settings.







- SureIn Secures €4M to Close the SMB Insurance Gap 15th Aug 2023 Innovative InsurTech startup SureIn announces a €4M Seed round to further its mission of making insurance easy, transparent and hassle-free for SMBs.
- SuperFi raises $1M pre-seed funding round 28th Jul 2023 SuperFi, the debt prevention platform, has announced a $1m pre-seed funding round to support people during the cost of living crisis.
- Startups rely on AI & sustainability for new partnerships 27th Jul 2023 41 startups from 13 countries, including the UK, have been selected for the 8th Kickstart Innovation program, one of Europe’s leading innovation platforms.
- Another Round closes £300k Seed round to revolutionise personal training 21st Jul 2023 Personal training platform Another Round has secured £300k in its latest fundraise, including investment from angels and its community.