Business car insurance

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A guide to business car insurance

Updated March 19, 2024
Written by Kenneth Young
Reviewed by Adrian Taylor

Expert tips on insuring your car for business use

Our car insurance expert, Adrian Taylor, has some helpful tips for getting your car covered for business use.

Adrian Taylor
Executive General Manager – General Insurance

Let your insurer know how you use your vehicle

Insurers approach the use of a vehicle differently and, depending on its use, may not be able to offer any cover at all. Be sure to let your insurer know how you intend to use the vehicle so that you get the right cover in place.

Switch car insurance at any time

You can switch car insurance at any time; just check for cancellation fees before you do! If you’ve paid a portion or all of your premium upfront, you’ll usually receive a pro-rata refund for the unused period of insurance.

If you can, purchase online

Many insurers offer a first year premium discount if you purchase your policy online. However, this means your premium for the following year is likely to automatically increase, so it pays to compare insurance at least once a year.

What is car insurance for business use?

A man shaking the hand of a car salesperson at a dealership.Essentially, car insurance for business is a regular car insurance policy that includes provisions for business use as well as private use. The most important distinction is the purpose for which you’re using your vehicle and whether an insurer will cover it.

Australian personal lines insurers don’t always offer cover for business use in their car insurance options. This means it’s even more essential to check the relevant Product Disclosure Statement (PDS) before buying a policy for details on what’s covered. The Target Market Determination (TMD) may help you get a better understanding if the product is right for you, as well.

You could also ask your insurer whether they include cover for business-related incidents in their car insurance policies.

Which levels of car insurance cover include business use?

Whether your level of car insurance covers business use will depend on your policy and insurer. It’s important to check if business use is included in your insurance quote before you start using your vehicle for business purposes.

Generally, the following levels of car insurance can cover your vehicle being used for business purposes:

  • Comprehensive car insurance. As the highest level of coverage, comprehensive cover would insure your car for damage you cause to a third party’s vehicle or property in an accident, as well as damage to your car. Comprehensive car insurance also covers fire, hail and storm damage, as well as theft and attempted theft.
  • Third Party Fire and Theft. This policy covers you for damage you cause to a third party with your car. It also covers your vehicle for fire damage and theft, but not accidental damage.*
  • Third Party Property Damage. Similarly to Third Party Fire and Theft, Third Party Property Damage doesn’t cover any kind of damage to your car.* Instead, it insures the damage you cause to other people’s property in an accident. Importantly, it will not cover your vehicle should it be damaged or lost due to theft or fire.

* Unless an uninsured third party was at fault and you can identify them.

What’s considered business use?

It’s important to understand what constitutes business use, particularly since car insurance providers may have different definitions. For example, if you sometimes use your own car to go get the office milk, lunch or supplies, this is unlikely to count as business use of your car.

However, if your job requires you to use your personal car regularly to complete daily work or business tasks, you may need to take out business vehicle insurance. You may consider this type of cover if you routinely drive between locations as part of your job (e.g. tradies), or you use your car to transport other employees or goods from one location to another (e.g. a sales representative).

Business use cover for my car

What does business car insurance cover?

What does business car insurance not cover?

How do I get car insurance for my business car?

Important to know

Can my car insurance cover my business equipment?

Can I get car insurance for ridesharing?

Is car insurance for business use more expensive?

Is business use car insurance the same as commercial vehicle insurance?

Meet our car insurance expert, Adrian Taylor

Adrian Taylor
Executive General Manager – General Insurance

As Executive General Manager of General Insurance at Compare the Market, Adrian Taylor is passionate about demystifying car insurance for consumers, so they have a better understanding of what they’re covered for. Adrian’s goal is to make more information available from more insurers, to make it easier to compare and save.