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* Excluding overseas visitors cover and roadside assist. T&C’s apply. Offer ends 31 October 2020. Max 1 entry per household/policy & hold policy for min. 30 days. NSW Authority No. TP/00214, ACT Permit No. TP 20/01093.1, SA Permit No. T20/968
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What is business car insurance?

Business car insurance is an extension of your personal vehicle’s policy that also covers you when using the car for business purposes. If you use one car for both personal and business use, it’s something you’ll need to ensure you’re adequately protected for when driving.

Insurers don’t always offer business car insurance as an option. As such, when taking out a policy, it’s essential you answer the insurer’s questions as honestly as possible about how you intend to use your car.

Which levels of cover can you add business car insurance to?

Generally, you’ll be able to add business vehicle insurance to the following policies.

All vehicles that drive on Australian roads are required to take out Compulsory Third Party/Green Slip insurance as a minimum. This provides cover for your legal liability if you kill or injure someone while driving but doesn’t cover damage caused to cars in an accident.

It’s important to check if you’ll be able to add business car insurance as an extra to the policy you decide on with your insurer, as cover can vary between insurers.

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What’s considered ‘business use’?

You may be wondering what car insurance providers consider as business use, particularly if you use your personal car as transport to and from work. If you sometimes use your own car to duck out and get the office milk, lunch or supplies, for example, you’re unlikely to require business car insurance.

However, if your job requires you to run errands and use your car on a daily basis to achieve these tasks, you’ll probably need to take out business vehicle insurance. Essentially, if you’re using your personal car regularly to complete daily work or business tasks, you’ll need to take out business vehicle insurance. You may consider this type of cover if:

Keep in mind that you don’t need to generate income by using your car for it to be considered a business vehicle. The car can be registered in either your name or the name of your business when taking out business car insurance.

Frequently asked questions

What does business car insurance cover?

The level of personal car insurance you take out will also determine what your business car insurance will cover. For example, if you opt for a Third Party Property policy for personal use, this is the same level of business car insurance you’d receive. The table below gives you a better understanding of what’s included in each available policy.

Level of coverDamage to your vehicleDamage to other vehicles and propertyDamage or loss caused by theftInjuries or death to other people in an accident
Third Party PropertyNoYesNoIncluded with CTP insurance
Third Party Fire and TheftNoYesYesIncluded with CTP insurance
ComprehensiveYesYesYesIncluded with CTP insurance

What doesn’t business car insurance cover?

Business car insurance is an extension of your existing policy, so you’ll likely be subject to the same exclusions as the level of cover you take out. You can find these exclusions in your Policy Disclosure Statement (PDS). It’s vital to be aware of them, so you know exactly how you’re covered in the event of an accident. Typical exclusions include:

  • drivers who aren’t listed on your policy (depending on the insurer, you may be able to claim if you also pay an unlisted driver excess);
  • driving the car under the influence of drugs or alcohol;
  • driving with an invalid licence;
  • intentional damage or harm to your vehicle;
  • car racing; and
  • car damaged due to natural wear and tear, such as rust or mechanical failure.
Is business car insurance more expensive than a personal policy?

Yes, business car insurance will cost more than a typical personal policy. While this cost varies between providers, it’s usually more expensive because the vehicle is being used more, and you may be driving in unfamiliar areas. Insurers may see this as an increased risk and, therefore, increase the price.

Of course, the amount you pay will vary based on your circumstances.

How do I get business car insurance?

You’ll need to find an insurer that offers business car insurance as an extra to comprehensive, Third Party Property or Third Party Fire and Theft policies. When you complete a quote using our car insurance service, for example, we’ll ask for some details about your vehicle, the level of cover you’re looking for and how you intend to use your car.

Being honest ensures you receive the right cover for your circumstances and helps the provider determine if business car insurance is even an option for you. You may be required to answer questions about the car’s use, including:

  • whether you’ll be using the vehicle to receive payment for carrying passengers;
  • if the car will be used to transport goods or make deliveries for a fee; and
  • how many kilometres a year the car is driven.

If you already have a policy and you want to add business car insurance down the track, it’s best to contact your insurer directly to assess your options. If business vehicle insurance is something they offer, you’ll usually be able to add this to your existing policy at a later date.

Is business car insurance the same as commercial car insurance?

While the two are similar, business car insurance isn’t the same as commercial car insurance. While both provide cover when a vehicle is used for work purposes, commercial car insurance protects business vehicles that are used mainly in the workplace and rarely for personal use.

Commercial car insurance is sometimes offered as a stand-alone product, and insures numerous vehicles under one policy. In addition to regular cars, this type of cover is generally used for other vehicles, including forklifts, trucks, vans, utes and trailers.

You’d typically consider commercial car insurance when:

  • a business needs to insure numerous vehicles under one policy;
  • a vehicle is transporting or carrying goods you want to protect;
  • you want protection in the event a vehicle breaks down; and
  • the vehicle is used for rigorous work.
Can business car insurance cover other employees?

Business car insurance can cover other employees, providing they’re listed as an additional driver on your policy. Just as you would with your standard car insurance policy, you’ll need to list anyone who you expect to drive your car regularly.

Failing to list regular drivers could mean you run into problems when claiming for an accident they’ve caused. Adding additional drivers usually increases premiums, which are calculated based on their age, gender, claims history and how long they’ve had their licence.

Discover why it pays to compare car insurance

If you’re ready to compare car insurance and possibly find a policy that offers great value business car insurance, we can help you out. Our comparison service is easy to use, free and allows you to compare available policies in one convenient location.

Simply enter your vehicle’s details, answer a few simple questions, and you’ll be ready to compare your options in minutes. Simples!

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