Business car insurance is a form of regular car insurance that allows you to use your vehicle for some business use. In other words, it's insurance for your personal car, but means you're covered if you use it for work too. This means that in addition to day-to-day commuting, you're also protected against damage or theft while occasionally performing business activities that aren't an essential part of how you earn income. This can include things like visiting clients, transporting goods, or running a mobile business.
Like any other personal car policy, you'll have a choice of the level of cover you'll get while you're on the road:
Business car insurance is not the same as commercial car insurance. It's not meant to insure vehicles only used for business, such as delivery vans, trailers, or heavy-duty vehicles like bulldozers. The type of incidents and damage it covers will also be less extensive than commercial car insurance.
Each insurer will have its own rules for it classifies as business use, but generally, these include activities such as:
It's important to understand that what is considered 'business use' may not be the same things that different insurers count as 'occasional business use'. For example, providers like Allianz won't cover you for rideshare or carshare use, and you run the risk of voiding your cover if your car is used for these purposes.
Always refer to the insurer's product disclosure statement (PDS) so you're aware of what is and isn't covered by a policy.
Business car insurance is intended to insure personal vehicles, which can include the following:
The range of vehicles that can be covered isn't as extensive as a commercial car insurance policy, and most policies don't insure things like trailers, trucks, and earth-moving vehicles.
Business car insurance is a personal policy designed to safeguard your private vehicle when used occasionally for business purposes. Unlike commercial car insurance, business car insurance tends to be more limited, typically catering to passenger vehicles such as sedans, utes, and wagons.
In contrast, commercial car insurance is tailored for vehicles solely dedicated to business activities. It usually provides a broader level of protection and covers a wider variety of vehicles.
As a type of personal insurance, business car insurance covers just one vehicle under a single policy. Commercial car insurance, on the other hand, is designed to insure multiple vehicles and even entire fleets.
Here's a simple breakdown of the two:
If you're looking for business car insurance, there are two main ways to get it – directly through an insurer or via a broker if you have specific needs.
Going through an insurer is the most cost-effective to get cover upfront, but it does come with a bit of leg work. You'll have to find an insurer that includes the use of the car for business activity in its car insurance policies. It's important to be upfront about how you plan to use your car. This way, you'll get the coverage that's right for your situation, and the insurer can see if business use insurance is a good fit for you. Your insurer might have a few extra business related questions, like:
If you already have car insurance and decide you want to start using your car for business, it's a good idea to reach out to your insurer to see what your options are. If they offer business use for personal vehicles, you can typically update your policy and adjust your premium.
Talking to an insurance broker can be helpful if your insurance needs are complicated or time-consuming to figure out.
You'll have the advantage of the experience and expertise of regulated financial advisers who specialise in insurance. This includes understanding your individual business risks and finding the right type of coverage from all the different insurance options on offer.
While there is a broker fee to use their services, insurance brokers can save you time, effort, and money, especially if they can negotiate a better rate on your behalf.
If your needs go beyond business car insurance, brokers can also help you find a commercial car insurance policy.
If you're considering a business car insurance policy, there are a few features you should look out for:
Whether it's a comprehensive policy with business cover or if you end up choosing a commercial policy – what you choose will depend on your individual needs.
Compare comprehensive car insurance from Australia's best insurers with Finder.
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