Tips on Cutting Business Car Insurance Premiums
The use of business car travel and company cars boomed in the 1980s and continued to grow due to governments initially encouraging their use as a way of promoting business. As with many other areas with life however governments soon saw the company car as another way of raising extra tax from the business car and car insurance markets.
If these taxes were intended to take more business cars off the roads they have largely failed. Many businesses simply have no choice but to use road travel, especially one man band type businesses. As a result of this the business car insurance market is competitive.
Car Insurance for Business Use
The majority of car insurance policies will only cover your car for ‘social, domestic and pleasure’ and commuting. If you intend to use your car for anything business related such as attending business meetings or running errands for a boss then it is likely that you will not be covered by a normal car insurance policy and for this you will need specific business cover.
Types of Business Car Insurance
There are three standard types of business cover.
- Private and occasional business use – this will cover you for personal use and commuting as well as occasional business use. The vehicle must not be registered to a company however, and must not be an essential part of earning your income.
- Private and business use – this provides the same cover as above but the vehicle can be registered for business use.
- Commercial travelling – this provides cover for those who regularly travel in their own vehicle as part of their job for example a door-to-door salesman
Cutting Your Premiums
Don’t pay more than you need to on business car insurance. Before you get your car insurance quotes think seriously about what you need the car for in terms of business use. While it is important not to underinsure yourself, you will need to carefully consider which of the three options above is appropriate to you. In addition follow the following tips to help reduce your premiums:
- Mileage Limit – If you have a rough idea of how much business travel you will be doing for the year consider agreeing to a mileage limit. If you can prove to the insurance company that you only travel limited distances, this is a great way to reduce premiums.
- Parking – if possible, arrange for the car to be parked in a secure area for example in your business grounds. As with any type of car insurance, this is preferable to street parking and the premium will be reduced accordingly.
- Be Sensible – Do you need such a high performance vehicle? How often will you drive car? If you can get away with a business car with a smaller engine then do it; not only will get cheaper business car insurance, you’ll save money on fuel too.
- Apart from these considerations, the normal rules of reducing car insurance premiums still apply. Agreeing to a higher voluntary excess, improving car security with insurer approved alarms and immobilisers and minimising optional extras will all bring premiums down.
These Business car insurance tips have been provided by Moneysupermarket.com