Personal Contract Hire, Car Insurance for business use?

[manjack]

For the car I own at the moment, the policy schedule reads "Social domestic and pleasure + commuting + personal business use".

Does this mean Business class 1?

When I leased vehicle arrives, I am planning to keep the same policy and same level of cover and just swap the vehicle on the policy. Do you think "Social domestic and pleasure + commuting + personal business use" will be sufficient to satisfy Business class 1 cover requirements.

I logged in online on my insurance company's portal and can only see these options:

How do you use this vehicle?


Social domestic and pleasure only (SD&P)
All of the above, plus commuting
All of the above, plus personal business use
All of the above, plus employer's business use


Social, domestic and pleasure only: All cover levels include social, domestic and pleasure use. This excludes any travel to and from work or other business use.

All of the above, plus commuting: This cover includes social, domestic and pleasure use, plus any travel to and from work by any driver named on the policy.

All of the above, plus personal business use: This cover includes social, domestic and pleasure use, commuting and personal business use of the policyholder and their domestic partner only.

All of the above, plus employer's business use: This cover includes social, domestic and pleasure use, commuting, personal business use and use for the business of the policyholder's employer or business partner.

[WTFH]

Are you a Ltd? If so, your contracts are between your company (I.e. Your employer) and your client. They are not between you and the client. As such, you need to be covered for "employer's business use"

[northernladuk]

I can see why the OP holds PC in such high regard

[northernladuk]

Are you a Ltd? If so, your contracts are between your company (I.e. Your employer) and your client. They are not between you and the client. As such, you need to be covered for "employer's business use"

Are you sure about this? You are not employed by your LTD. You are an office holder that is being re-numerated for services to your LTD. That is why NMW does not apply.

The wording isn't great but Business Class 1 states

Business Use Class 1

This is the level you need if you do some driving as part of your job, for example, travelling between sites away from your normal place of work.

If you’re using your car for hire, motor trade or the carriage of goods, like deliveries or door-to-door sales, then you’ll need a higher class of cover – Class 1 is very much just for travelling for work reasons.

That broadly equates to 'personal business'. The other option is for all employees and for carrying commercial goods. This could be argued to be the second option.

As this all relates to insurance I wouldn't be assuming anything. Just ring the insurance company and ask them. It will take a good 15 minutes of your time up but you will be safe.

[WTFH]

Fair point. I may well be wrong (I just ask the insurers for Class 1)

[manjack]

Yes, I run a limited company.

The general consensus seems to be that for a 'regular 9-5, 5 days a week, same client site' set-up like mine, I need 'Business class 1' insurance aka 'personal business use'. And, I don't need employer's business use? Is my understanding correct?

In any case, the initial link shared on this thread seems to give completely wrong info then:

Expert’s Answer: The answer to your query is ‘yes’ it is sufficient to just have SDP + Commuting, but only if you are permanently based at your client’s site.

[northernladuk]

Yes, I run a limited company.

The general consensus seems to be that for a 'regular 9-5, 5 days a week, same client site' set-up like mine, I need 'Business class 1' insurance aka 'personal business use'. And, I don't need employer's business use? Is my understanding correct?

In any case, the initial link shared on this thread seems to give completely wrong info then:

Nope. The experts advice is correct. You've only copied part of it. If you are based PERMANENTLY then you can't claim mileage so you are not on a business trip. You are commuting. If your clients site is temporary and your home is your permanent place, which are the conditions under which you can claim the mileage, then you are company business so can claim (and need the extra insurance). The article does go on to explain that.

[LondonManc]

Just a thought for the OP: I changed my car in October. I was considering leasing and initially it appealed. Then I thought about it a bit more and realised that while a new car every 2 or 3 years sounds great, I'm never any nearer to not having a monthly payment. While owning a depreciating asset isn't great, it's a thicker end of the wedge than always paying a monthly payment, renewal deposits and never having an asset to call your own.

[WTFH]

We have 2 cars - my wife's is bought and paid for (no loans/finance etc), mine is financed.
That way if we run out of war chest/cash, my car can go, but we still have one.
It's also because I tend to change cars every 4 years (a big waste of money, I know).