3 things to think about when buying commercial car insurance


If you’re running a business, with any day-to-day driving, you need a commercial insurance policy. Whether you’re a self-employed tradesman, a taxi driver, or head of a large fleet of drivers, commercial insurance is an essential requirement so that you and your colleagues can legally operate your business vehicles.

What is commercial car insurance?

Also known as business vehicle insurance or fleet insurance, commercial car insurance covers you or your employees during the hours that they’re doing their job. When an employee drives to work, it’s classed as commuting and covered under their personal policy. If that driver then takes a car, whether it’s their own or a fleet car, to meet a client off-site, that’s classed as work and requires commercial insurance.

Like with personal insurance, basic options offer liability coverage, paying out for the damage you inflict on another person or their vehicle. The most popular policies also provide collision coverage, paying out for injuries to yourself, your passengers, or damage to your vehicle. 

Commercial car insurance, in general, does not cover theft from your vehicle. So if you have to leave tools overnight or transport expensive goods, discuss your specific options with your insurance agent.

What types of vehicles are covered?

Business car insurance covers traditional business vehicles, such as transport lorries, recovery trucks, and mobile food vans. Trailers are normally covered to 750kg, but a large trailer will cost extra.

Even though it’s not a typical work vehicle, if a sales rep drives their company car to meetings every day, they’ll need business insurance. If you rely on employees to use their own vehicle to travel to clients’ houses, you’ll need to cover their insurance. 

If you’re self-employed, it’s not as clear cut, and it depends on how often you use your car for work and whether you transport goods or passengers in it. A delivery driver will need business insurance, but an actor who only drives to auditions, probably won’t. Sole-proprietors should discuss their specific driving patterns with an insurance agent.

What is the average price of commercial insurance?

Compared to personal insurance, business insurance has far more variables. Insurance companies look at how many cars are in your fleet, how many drivers, whether you’re regularly transporting passengers or customers goods, and the type of business you operate. As every business is different, the best way to get an idea of the cost is to shop around. 

When looking for a cheaper business policy, the best way to get the price down is to use low-risk drivers, increase your business excess, and ensure your vehicles are secure.

Getting the right insurance for your business takes a bit of work, but if you don’t have the right insurance, you might get a hefty fine, or even have your vehicle impounded, so take the time to get it right.

VouchForMe’s Team insurance works with fleet operators and their drivers, encouraging teams to drive safely through our unique reward system. Find out if you can benefit here.