Business car insurance

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.

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.

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.

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.

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.

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.