How to choose car insurance for company car drivers
What factors should businesses consider when choosing car insurance for company car drivers, and what should they pay attention to in the small print? Here are some tips to help you choose the right cover for your business.
Choosing the right car insurance for company car drivers
Contrary to popular belief, a standard car insurance policy is not suitable for company vehicles. Standard car insurance only covers general commuting between home and work, as well as leisure trips such as driving to the supermarket or going away on holiday; it does not cover business or commercial driving.
Businesses providing company cars or vans need to ensure that they have the right car insurance in place to avoid being out of pocket if their vehicles are involved in an accident. It is important to bear in mind that different insurance companies provide different levels of cover and will name their policies differently; this list is meant to serve as a guide only.
– Business insurance: this type of policy covers the use of a private or a company car for business purposes beyond the normal commute to and from the office, such as for trips to client sites. It can exclude frequent long-distance driving and trips for the purpose of sales.
– Commercial insurance: this type of insurance is aimed at businesses who rely on a vehicle in order to carry out their business, such as taxi and logistics companies.
– Fleet insurance: this type of insurance is specifically tailored to those businesses that operate more than two vehicles, allowing them to put all their commercial vehicles onto one policy, even if they are of different types, such as a mix of cars, vans and trucks.
Within those general categories of insurance, businesses will also need to consider the following in order to tailor the insurance to their specific needs:
– Whether the vehicle will be insured for a named driver, or for any driver
– Whether the policy has a cap on the number of miles it provides cover for or whether it is unlimited
– Whether you need any extras, such as haulage insurance, comprehensive cover, and third party, fire and theft
How to keep premiums down
As with general car insurance, businesses will want to make sure that they get the right deal for the right price. Here is some useful advice for keeping premiums down for car insurance for company car drivers.
– Do not insure for more than you require. If the company car is only used to drive to a client site once a week, it does not make sense to buy expensive Class 3 business insurance with unlimited miles.
– Consider driver age limits. Insurance premiums are typically lower for older, more experienced drivers.
– Choose the right vehicle. The choice of car can have a massive impact on the insurance quote, so think carefully about factors such as vehicle age, engine size, and emissions.
– Shop around for quotes. There are plenty of comparison websites available that will show you the most competitive deals for your business’ specific circumstances.