If you are a business owner and have a company car, you will need to apply for Company Car Insurance. At Call Wiser, we work with a panel of the UK's leading insurance providers in order to find you the best quote.
Company Car Insurance is paid for by the employer that owns the vehicle and they will pay an annual premium to insure drivers such as staff members. The employee does not own the vehicle but is allowed to use it as part of their work contract and this will usually include a petrol allowance. There is the possibility for employees to claim tax relief on their petrol too.
Business Car Insurance is paid for by the individual employee that drives the vehicle. If you use your car for more than social and domestic use and it plays a big role in your business, you will need Business Car Insurance.
Insurers need to know the reason for driving a company car. The average journey lengths, the road conditions and the goods carried will determine how much you pay.
When it comes to assessing the risk of insuring drivers, it is important to understand whether you will be driving on busy roads during rush hour or quieter periods. Also, we need to know if you will be driving just yourself, other colleagues or heavy goods as this will also impact the price you pay.
When applying for car insurance, you must be honest about the purpose of your vehicle. Failing to state that you use the car for business use will be considered a criminal offence and you will not receive compensation in the event of an accident. (Source: Citizens Advice Bureau.)
How much driving you do puts you at a greater risk of accident so the more you commute, the higher your premium.
Driving in busy, hazardous or unfamiliar roads can cause your premium to increase as this might make you more prone to an accident.
Your type of vehicle and its condition will be reflected in your premium. Cars in good condition and have able security features are favoured by insurers.
The main drivers level of experience is considered in the cost of the premium. How long the driver has been on the road for and their claims history will affect cost. There are policies for any drivers too and the more drivers you have, the less each person will be to insure.
It means that anyone can share the driving and there are no business interruptions because every person is insured.
So if you want employees to be able to share the cars available, we can provide quotes for any drivers. In fact, having a number of different drivers may reduce the cost of insuring each person.
Similar to multi car insurance, the more people you put on the policy, the less it costs because it is like you are buying insurance in bulk.
If any of the drivers you wish to insure have a no claims bonus or several years of experience behind the wheel, this will also reduce the cost.
With a range of policies available, we can compare the different policies available and find the right product for your business needs.
There are three different classes of Business Car Insurance to accommodate drivers.
When you set up a policy, you will fall into one of the following categories:
Class 1: This policy is for workers that commute to multiple sites and offices around the country. Usually, the driver’s spouse is automatically insured too as long as it is used in accordance with the policyholders business.
Class 2: Similar to Class 1 as it insures drivers who commute to numerous locations. The difference is that this policy covers the main driver who set up the policy and an additional named driver, in accordance with the policyholders business.
Class 3: The policy allows for the transportation of light goods. So if your business involves selling goods or making deliveries, you will be insured for any damages to the items in your vehicle.
This is for drivers who use their cars for commercial purposes such as taxi drivers and couriers. Your policy will require cover for any passengers and goods kept in your vehicle.
We can help find the best policy for you and this includes adding multiple drivers to the account and allowing any drivers. Call us today for a free and no obligation quote.
For businesses that have a company car, they have the responsibility to insure any colleagues or employees that wish to use this vehicle. This is common for staff that do a lot of driving as part of their work, going to different sites, offices or meetings across the country such as: