When the time comes for you to take out car insurance, you could be faced with various confusing words and terms. Well, they might be confusing at first glance, anyway. However, understanding them is necessary, as failing to do so could endanger your ability to select the right cover.
The UK Government’s site outlines penalties for driving without insurance. Should you fail to heed the Government’s warning, you could be hit with a fixed penalty of £300 plus 6 penalty points. For you, we can untangle insurance-related jargon – including the tricky term of “commercial travelling”…
Sadly, if you want to cover yourself for corporate use of a car, you can’t just assume that a standard policy in car insurance will enable you to do this. In fact, assuming so would be risky, as selecting the wrong cover could lead the insurer to deem your policy invalid and so refuse to pay out.
If you want to do any commercial travelling, which we will later define, you will need car insurance that is meant for business use. However, where exactly is the line between personal cover and business cover? To find out, you will need to look closely at particular terminology…
That terminology is defined by the Business Motoring site. If you will always be walking or taking public transport to work and, hence, will never use a car to get there, then the “social, domestic and pleasure” strand of business car insurance would suffice for you.
However, do you intend to drive a car to work and, to be more exact, the same workplace on every occasion? If so, you will have to step up to at least the “social, domestic, pleasure to include commuting” level of business car insurance.
Keep in mind that, with this particular type of insurance, you wouldn’t be covered for driving to multiple places of work. Therefore, if you drive to a base other than your usual one, such as to attend a training course, you will be uninsured – the ramifications of which, we have clarified…
There is another tier of car insurance – and it’s known as “business use”. However, at this level, car insurance can become harder to understand – especially as there are three classes of “business use” insurance. Only the third class covers “commercial travelling” as standard.
Ah, that phrase in speech marks again. Before we look closer at it, let’s consider precise ways in which these classes differ. With class one business use insurance, you would receive all of the coverage that comes with a “social, domestic, pleasure to include commuting” policy, but what else?
You would be permitted to use the car for a business of your own rather than an employer’s. Meanwhile, class two business use cover enables the employer to use the car for business use. Still, commercial travelling could be exempt from coverage under classes one and two. This wouldn’t be the case with class three; in fact, its point of differentiation from class two business use is the inclusion of commercial travelling. Now, this raises an obvious question…
It would be fair to say that the definition of “commercial travelling” isn’t always easy to pin down. According to the Business Motoring site, the term was – in the past, but no longer – used for business calls made without appointments being prearranged.
However, the Express provides its own, modern definition of commercial travelling, which it says “includes things such as selling goods on the road or deliveries”. You might find that you need coverage for commercial travelling if you often drive as part of your work.
In any case, you should be careful if you seek to drive someone else to work. Before you go ahead with such road travel, carefully check the terms of your existing car insurance policy. After all, your policy might not be of the appropriate class of use.
Like it or not, the exact ways in which you want to use your car will affect the insurance premiums – for better or worse. Therefore, if you seek to put your vehicle to very particular and demanding purposes, you might need to pay relatively and unexpectedly high premiums as a result.
Furthermore, it is crucial that, during the application process for a new car insurance policy, you are as honest and accurate as you can be about how you will be using the car to be insured. Otherwise, you could find that, just when you most urgently need this cover, it has been declared void by the insurer and so you need another way of funding what you had originally wanted the cover to pay for.
However, if you aren’t very experienced with sorting through car insurance quotes, you could be anxious at the idea of doing so now – and, along the way, having to decipher various bewildering terms. There can be quite a few subtle but confusing differences between policies, so what should you do?
One possible and simple step forward, which could shed the application process of much of its apparent complexity, is asking an insurance broker to provide your cover. If you are busy with business responsibilities, a broker can help you to find the right policy time-effectively.
That would be no trifling advantage given that, of course, time is money. You can call us at Call Wiser to let us discuss your specific requirements for car insurance. We can subsequently take close account of these needs as we launch a search for car insurance quotes from over 30 leading insurers.
From the moment that we answer your call, you can anticipate waiting just 10 minutes to receive a competitive quote. What if you are a mechanic, car salesperson or garage owner in search of car insurance? Our sister brand, Be Wiser Business Insurance, can provide road risk insurance.