Reply to: Car Insurance - Business Usage - more expensive?

[SueEllen]

I've had class 1 business use (or whatever they call it now) for decades, it costs a couple of quid a year. That's all you need unless you're carrying business goods/spares/stock in which case that's some other thing that costs more.

BTW Business class 2 is for your named drivers to have business travel, however you need to confirm with the insurer whether they need to be in the same business as yourself. So for example, if one of you is an IT contractor and the other named driver who uses your car for work reasons works in the health service, you need to get the insurer to confirm you can both use the car for your specific business.

Otherwise may get screwed over if either of you has an accident.

[SueEllen]

Do any of you put that 'extra' through as a business expense, or just suck it up?

Can't expense £0.

[JRCT]

Never bothered expensing it, doesn't seem worth the effort really for two quid.

I figured that too. If it was a substantial amount, it'd be quite difficult to do, also, I would think. I presume you'd have to get a quote with and without to enable you to proportion it correctly.

[TykeMerc]

Do any of you put that 'extra' through as a business expense, or just suck it up?

Never bothered expensing it, doesn't seem worth the effort really for two quid.

[BolshieBastard]

Do any of you put that 'extra' through as a business expense, or just suck it up?

I used to just pay it personally and not bother as an expense. £10 a year as an expense? Tesco insurance used to include it for nothing.

[JRCT]

If you claim your home as your office (as most contractors do?), travelling to client site is business travel. And, once you arrive at client site, if you need to use your car for any business related travel ie attend another client site for meeting, you will not be cover under your SD&P and commuting clause in your policy.

The extra cost is negligible. If your insurance co charges more than £50, you need to switch companies.

Do any of you put that 'extra' through as a business expense, or just suck it up?

[BolshieBastard]

If you claim your home as your office (as most contractors do?), travelling to client site is business travel. And, once you arrive at client site, if you need to use your car for any business related travel ie attend another client site for meeting, you will not be cover under your SD&P and commuting clause in your policy.

The extra cost is negligible. If your insurance co charges more than £50, you need to switch companies.

[psychocandy]

Would agree it adds very little cost.

Important to have though. You are travelling from your employers site (i.e. home) to a client site so its a business trip. As NLUK says, thats why you get to claim mileage.

I wouldnt want to risk having an accident and the insurance company looking into this and knocking the claim back.

Insurer - So you've got your own company yeh and you were travelling to another company who you've got a business relationship with? OK do thats a business trip then? OK let me see. Ah looks like you're not covered for business use. Sorry.

[mudskipper]

Mine was the same cost. Even as a permie you need business insurance if you ever use your car, for example, to attend a conference, training, client site or suchlike that isn't your regular place of work.

[Contreras]

Might not even add that much if your mileage is low enough.

Might even be less. Insurance quotes can be that weird.

I find typically Fully Comp. to be less than TPF&T, TPF&T to be less than TP-only. You can even sometimes get a lower premium for higher mileage.

[TykeMerc]

There is more than one class of business use for your vehicle.

Someone using their car to deliver pizza (Business class 3) is different from someone travelling to business meetings (Business class 1).

Even if you are a permie and use your car to randomly travel to a meeting in the middle of the day at a different site then you need business use (Business class 1) on your car.

What She said is spot on.

Site to site travel (an interview for example) or any travel you would expense is business use.

I've had class 1 business use (or whatever they call it now) for decades, it costs a couple of quid a year. That's all you need unless you're carrying business goods/spares/stock in which case that's some other thing that costs more.

[SueEllen]

You are not YourCo, you are 2 separate legal entities.

YourCo Employee commuting to the the client using his personal vehicle is not business use. Otherwise 90% of people are using their cars for business....

YourCo Employee delivering pizza using his personal vehicle probably is, but it's not what the OP is asking i guess.

There is more than one class of business use for your vehicle.

Someone using their car to deliver pizza (Business class 3) is different from someone travelling to business meetings (Business class 1).

Even if you are a permie and use your car to randomly travel to a meeting in the middle of the day at a different site then you need business use (Business class 1) on your car.

[SueEllen]

Might not even add that much if your mileage is low enough.

It adds nothing to my insurance. I've done quotes with S&P and commuting, then adding business to it.

[vwdan]

Might not even add that much if your mileage is low enough.

When I was 18 I purchased a classic car and promptly found out the hard way I couldn't get insurance until I was 19 - or, rather, couldn't find any at a <£5k until I was 19. Anyway, turned 19, and managed to insure it for about £700 a year and it came with business insurance. I know it's all statistically driven, but as a consumer, insurance can feel random at best.

[quackhandle]

YMMV. ;-)

qh