Are you aware of your duty to maintain your employees’ car insurance policies? Do you know that you require business car insurance if you use your vehicle for work-related activities? If no, you and your business may be at legal risk for not ensuring that your ‘grey fleet’ is covered.
A grey fleet means a fleet of drivers who use their own vehicles for business purposes. Though it cuts the maintenance costs, the risk your business might face overweighs the benefit. Many of the grey fleet drivers don’t have proper insurance coverage, which puts the businesses at risk of being prosecuted under the UK organizational policy.
Even if you drive your employees or colleagues around, or commute to different locations for work, or anything that you use your vehicle for on behalf of your work-business car insurance is necessary.
What If You Drive Without Business Insurance?
In the UK, there are thousands of uninsured business drivers on the road. Around 31% of the total car crashes in Britain involve someone driving for work. It depicts that people are still unaware of what constitutes the business use of a car. If you ever get involved in a road crash while driving for business, you may not get the compensation unless you have proper coverage.
When Do You Need Business Car Insurance?
A standard car insurance policy covers your car for domestic, social, or personal use, including commuting to and from your workplace. To be on the safer side, you can inform your insurance company that you use the vehicle for this purpose. The insurer will add the designation to your policy to address driving.
Further, if you work for a company that regularly sends you out to different locations, in that case, you need to purchase specific insurance coverage. For this, check with your employer if their company’s insurance covers you in this regard.
What Are The Different Levels Of Business Car Insurance Plan?
There is no one standard business car insurance policy. Depending on your requirements, UK cheap car insurance companies provide a range of options. You need to decide which option works the best for you-
Business Car Use By You
If you drive to a few different places for work, or switch between sites of locations, you can choose this option. This policy covers you, along with the option to add a spouse or a salesperson.
Business Car Use By All The Drivers
Choose this cover option if your vehicle will be driven by you, as well as by the other people for business purposes. They can be your employees or spouse.
If you have to drive frequently to different locations as a permanent part of your business or job, choose this option.
Why Does Business Car Insurance Charge Higher Premium?
Business car insurance premiums are higher than the standard ones. The reason is, a driver who drives a car extensively for business, as well as domestic purposes, is considered riskier. He / She has to cover long distances often on unfamiliar roads or heavy traffic. This leads to an increase in the annual insurance premium rates.
However, finding a very cheap car insurance company UK isn’t a dream! You can compare the rates of the insurance providers and settle for the one that suits your needs and budget.
How To Get A Cheaper Car Insurance For Your Business Use?
There are so many factors that affect the insurance premium rates of a car that you use for business purposes. The cheapest car insurance in the UK provides customers with better deals to help them bring the price down.
Insurers place each car in one of the 50 car insurance groups, and the car placed in group 1 is the cheapest to insure. Further, the security of your vehicle also has a great impact on the insurance price. If you put an alarm or an immobilizer and keep the vehicle in a garage overnight instead of parking it out, you can bring down the cost.
Moreover, the insurers provide careful car drivers with a reward of lower premiums. Try not to claim; it will make you eligible for no claims discount and may cut the cost up to 75%.
Find A Cheap Car Insurance Company
Though business car insurance is a bit expensive, by conducting thorough research, you can get your insurance plan tailored easily!
A good car insurer can answer all your doubts or queries and offer a range of plans to fit your needs. Don’t just settle with one quite! The best way to find cheap car insurance in the UK is to compare quotes, services of different insurers, and go for the one that offers an affordable insurance plan.
Also, make sure that the insurer provides full coverage if something unexpected happens.