Reply to: do I need special insurance to drive my own car

[WTFH]

I switch between Direct Line and Admiral on our cars every couple of years.
Two cars, both business use, comes in at about £400 per year fully comp in total. Currently with Admiral when Direct Line wanted to put one car up to £350 and the other one at £300.
When Admiral go to raise the price next year, I'll look around and then probably go back to DL.

[northernladuk]

When I asked direct line about business use when I renewed last year they said business use is included as standard an all of their fully comprehensive policies not just commuting actual business use.. I drive between a few client sites some times a few a day so I needed to be sure I was covered.

They don't bother making the distinction because its a few £ difference and if someone has an accident in their own car there's very little they can do to prove it was a business or personal journey so its easier all round just to charge the same rate and say its covered.

Got to say I'm pretty impressed with Direct Line. I have house insurance with them because it's just so simple. No chosing this and that. Just limits that are all higher than I need with everything all in. None of this adding away from home, listing individual jewellery or having to trawl through to check if stuff at the lads uni is covered. It's all there. Good stuff IMO. I'll be looking at the car insurance next time round.

[Snarf]

When I asked direct line about business use when I renewed last year they said business use is included as standard an all of their fully comprehensive policies not just commuting actual business use.. I drive between a few client sites some times a few a day so I needed to be sure I was covered.

They don't bother making the distinction because its a few £ difference and if someone has an accident in their own car there's very little they can do to prove it was a business or personal journey so its easier all round just to charge the same rate and say its covered.

[SueEllen]

I added business use to my policy, cost me about 25 quid, 15 of that was the stupid admin fee.

Mine was the same the first time I did that. Though I was permie the first time I added it on.

When I renewed I took business class 1 of the quotes and then added it back on. It made absolutely no difference to the price.

The only reason it would be more expensive than SCD is due to your occupation. However I know some insurers don't give a damn as long as you have an office based job.

[WTFH]

I agree.
But it seems hard to get business use on a classic motorbike policy....

"Classic" policies tend to be restrictive on mileage, use, etc. If you want business use, then you'll struggle to find a classic policy to cover it.

[Lightwave]

Ignoring all of the arguments about semantics of the word, Class 1 business use (or whatever it's called now) costs about two quid, it can even make your premium slightly less on some quotes I've had in the past, get it that way you avoid any risk. Plus you definitely DO need it if you travel between sites at all, even just for meetings, you need that if you're a permy too unless you're using a pool car insured by the company.

I agree.
But it seems hard to get business use on a classic motorbike policy....

[NibblyPig]

I added business use to my policy, cost me about 25 quid, 15 of that was the stupid admin fee.

And I have no no-claims or insurance history cos I've not driven a car for years and when I did it was only 6 months, so my policy is quite expensive (400 odd quid iirc).

[JRCT]

Well the first definition I've managed to google does say "permanent place of work" as part of the definition of commuting. (Confused.com)

I remain doubtful that insurance companies's definition of permanent place of work is the same as HMRC's though. Though no doubt they'd like us all to pay for the most expensive cover, even if we don't need it.

From a risk point of view, I think insurance companies want to distinguish between those who travel to the same destination every day, and those who travel to different destinations, and possibly multiple destinations within a day. The latter two is what I think business cover is for. (In fact on other sites there seem to be up to three levels of business cover, however they all seem to apply to something other than commuting to the same place every day.)

Reading on, confused.com does say that business cover is for when you need to drive somewhere other than your "normal place of work". (No, I don't think "home" is a contractors normal place of work, unless they work more days there than they do in a single client office. And even if the did, home possibly doesn't count for insurance purposes, it would make no sense to charge someone more for driving to the office two days a week than you would charge them for driving there five days a week.)

So, taking the descriptions at face value, you don't need business cover to drive to your "normal place of work", but commuting cover only covers you to a "permanent place of work". So there is a contradiction if you rely on the tax definition of "permanent."

The second place I googled was Admiral, which had the same definitions, and the same potential/apparent contradiction, as confused.com.

Googling further:-

Third place: Allianz. Commuting is travelling to your "usual place of work."

Fourth: GoCompare, agrees with first two.

My own insurance company doesn't appear to have any definition of commuting, that I've found so far. (I work from home five days a week, so not really an issue.)

I think you probably need to change your username.

[TykeMerc]

Ignoring all of the arguments about semantics of the word, Class 1 business use (or whatever it's called now) costs about two quid, it can even make your premium slightly less on some quotes I've had in the past, get it that way you avoid any risk. Plus you definitely DO need it if you travel between sites at all, even just for meetings, you need that if you're a permy too unless you're using a pool car insured by the company.

[WTFH]

As others have alluded to, you need Business Class 1

SDP covers only social, domestic and pleasure use, adding Commuting covers to and from usual/regular/permanent place of work.
Business Class 1 has all of the SDP element, but also includes driving in connection with work.......but not including selling/solicitation () and so forth. Business Class 3 includes all else, i.e. selling and so on.

Dunno what happened to Business Class 2

I thought that Class 2 used to cover carrying items in your car (but not for sale). So, if your client gives you a laptop and you carry that in your car, then it was class 2, but reading around it appears that it now means more than one named person using the car for business use.

[kevpuk]

As others have alluded to, you need Business Class 1

SDP covers only social, domestic and pleasure use, adding Commuting covers to and from usual/regular/permanent place of work.
Business Class 1 has all of the SDP element, but also includes driving in connection with work.......but not including selling/solicitation () and so forth. Business Class 3 includes all else, i.e. selling and so on.

Dunno what happened to Business Class 2

[IR35 Avoider]

Money Supermarket says:-

Business car insurance explained

A standard car insurance policy covers your car for so-called social, domestic and personal use, which includes everyday driving such as visiting friends, the shops or a day out.

Many policies also automatically cover your car if you commute to and from a regular place of work. So, if you drive the car to the same office every day, or park in the same station car park, you would be insured.

But what if you drive to several different offices or work sites? Perhaps a colleague regularly takes your car to visit clients. Or maybe you drive hundreds of miles a week for business purposes. If so, you will almost certainly need business car insurance. It is often more expensive than standard motor insurance, but it is important to get the right cover for your needs.

[IR35 Avoider]

Well the first definition I've managed to google does say "permanent place of work" as part of the definition of commuting. (Confused.com)

I remain doubtful that insurance companies's definition of permanent place of work is the same as HMRC's though. Though no doubt they'd like us all to pay for the most expensive cover, even if we don't need it.

From a risk point of view, I think insurance companies want to distinguish between those who travel to the same destination every day, and those who travel to different destinations, and possibly multiple destinations within a day. The latter two is what I think business cover is for. (In fact on other sites there seem to be up to three levels of business cover, however they all seem to apply to something other than commuting to the same place every day.)

Reading on, confused.com does say that business cover is for when you need to drive somewhere other than your "normal place of work". (No, I don't think "home" is a contractors normal place of work, unless they work more days there than they do in a single client office. And even if the did, home possibly doesn't count for insurance purposes, it would make no sense to charge someone more for driving to the office two days a week than you would charge them for driving there five days a week.)

So, taking the descriptions at face value, you don't need business cover to drive to your "normal place of work", but commuting cover only covers you to a "permanent place of work". So there is a contradiction if you rely on the tax definition of "permanent."

The second place I googled was Admiral, which had the same definitions, and the same potential/apparent contradiction, as confused.com.

Googling further:-

Third place: Allianz. Commuting is travelling to your "usual place of work."

Fourth: GoCompare, agrees with first two.

My own insurance company doesn't appear to have any definition of commuting, that I've found so far. (I work from home five days a week, so not really an issue.)

[Contreras]

Have you asked your insurance provider?

You need insurance to drive to your place of work? oh tulip!

Have your read your contract?

Have you asked in general?

Very good.

If claiming mileage expenses then it's "business use".

If not then it would be normal commuting.

Usually 'business use' costs little or nothing extra. The policy might cover it already but check this with the provider.

[mudskipper]

Those of you who only have 'commuting' on your policy may find you're not covered. Commuting on every policy Ive had only covers travel to a 'permanent place of work.'

Since most contractors denote the client site as a temporary place of work to claim travel expenses, you're not travelling to a permanent place and thus not covered.

Just saying.

Agree. You need business use.