Arranging Company Car Insurance for Your Business
As the owner-director of a small business, arranging insurance for your company car is your responsibility. Here is the information you need to know:
Fleet Insurance Simplifies the Process
Fleet insurance is the best option for businesses with two or more vehicles. Instead of paying multiple premiums for multiple vehicles with different renewal dates, fleet insurance simplifies the process. At renewal time, you can handle all your vehicles and pay a single premium, reducing administrative hassle.
Fleet insurance covers all classes of vehicles owned and operated by your company for its business operations, including company-issued cars used for work journeys, as well as taxis, motorcycles, minibuses, HGVs, trucks, and construction site equipment.
Most fleet insurance policies offer three different levels of cover: Third party, Third party fire and theft, and Comprehensive cover. Many insurers also offer vehicle breakdown cover as an add-on.
Named Driver or Any Driver Policy?
Named driver policies are more cost-effective and suitable for smaller businesses, while any driver policies are better for larger businesses where cars are interchangeable. However, any driver policies come with higher insurance costs.
Business Use Insurance
If an employee uses their own vehicle for business purposes, they need to ensure they have business car insurance, not just “social” or “social and commuting” insurance. Business use insurance covers visiting customers, travel to meetings, running errands, transporting clients, and driving colleagues.
Understanding your Insurance Options
It’s important to understand the different types of business car insurance available. Class 1 is basic and covers occasional visits, while Class 2 is for named coworkers to share driving. Class 3 is for salespeople who spend a lot of time on the road.
Save Money with the Right Car and Security
There are several ways to reduce your company car insurance premium, such as choosing a car in a lower insurance group with low emissions, parking the car overnight off-road in a locked garage, and installing security features like alarms, immobilizers, and tracking systems.
Grey Fleet Vehicles and Your Responsibilities
If an employee uses their own car for your business, it’s known as a grey fleet vehicle. It’s the employee’s responsibility to insure the vehicle, but your company has a responsibility of care to ensure that the correct company car insurance is in place. Under the Health and Safety at Work Act 1974, managers of grey fleet vehicles are responsible for ensuring that all vehicles are properly serviced, maintained, and insured for business use.
Exploring the Best Fleet Insurance Brands
Here are some of the best fleet insurance brands:
- Admiral
- Aviva
- NFU Mutual
- QBE
- Swinton
- Towergate Insurance
The Best Business Car Insurance Brands
When it comes to business car insurance, some of the best brands include:
- AXA
- Hastings Direct
More Information on Company Cars
For more information and insights on topics related to company cars, including tax implications, leasing, and managing company car tax, check out the following resources:
- Can you have a company car if you’re self-employed?
- Buying a car through your business
- A guide to car leasing for small businesses
- How to manage company car tax as a small business owner
