Private Versus Business Car Insurance: What Do I Need?
Things aren't always black and white in this crazy world! Even the simplest
things can get a little complex - and that includes your car insurance. What defines private or business use can get a little blurry, as most would know. It is actually rather unusual to have a car that is used purely for commuting to work, and never for work related tasks! Today we are looking at a few different scenarios that may match, or nearly match, yours, and whether private or business use applies to them. We'll also look at why you should run a mile from car insurance companies that ask you nothing more than "Is this car ever used for business purposes?"! So, what if...I'm a tradie and use my car to go from job to job
This scenario is fairly clear-cut. You'll normally be carrying tools that are used in the regular course of your business, possibly carrying other people's goods and supplies, and generally doing plenty of driving during the day. These activities indicate business use and you'll definitely need to indicate this on your car insurance quote form.
I'm a caterer and use my van for private use as well as carrying supplies
In cases where the car is used for both private and business use, the business use prevails over the private. This is because business use is seen to carry greater risk than purely private work.
I use my personal car to travel to meetings during work hours
In this case, you may need to indicate business use. It will usually depend upon the number of times you are required to attend these meetings using your car. However, if you change jobs (or even change roles within your company) and going to meetings in your car is no longer a requirement, get in touch with your car insurance agency - you should be able to get a significant discount.
I run small office errands in my own car
If you only ever do these errands when you or on the way to, or home from, work, you may be able to simply state 'Private - commuting to work only' on your car insurance quote form. You would need to ensure that you keep the errands to those specified times, however.
I use my car for delivering my business goods to customers
This is another clear-cut case where business use must be specified. When you are carrying other people's goods, there is the possibility of an extra liability in a crash, and your car insurance would have to be adjusted accordingly for that.
Why should I appreciate being asked about my personal life on a car insurance quote?!
Well, it depends what the nature of the question is! Nobody needs to know whether you like to dog-ear your books or use a bookmark but car insurance companies that ask more specific questions about how you use your car are actually saving you money, in most cases.
You can see from the scenarios above that there is a huge variance in the profile of a 'business' user, from someone driving all day, every day, to someone that might only go to one meeting a week in their own car. The heavier car users obviously have greater risk yet if all business users are lumped together, then light users are paying for someone else's risk. Doesn't seem fair, does it?! That's why informative personal questions are actually a good thing - at least when they come on a car insurance quote form.
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