Business Car Insurance

Business car insurance is a type of policy which can cover cars used for business purposes. It differs from personal car insurance in that it covers vehicles which are owned and used by a business or are owned by an individual but used primarily or in part for business purposes. Personal car insurance on its own won’t generally offer coverage for business use.

While it has “business” in its name, the reality is that this type of insurance, in many cases, is an extension of a personal use policy. This means that this type of cover is generally designed for those who are using their car both for personal and business use.

It's important for business owners to carefully consider the type of coverage they need and to shop around to find a policy that offers the right level of coverage at a competitive price. That's where Savvy can help you out. Compare a range of options through us today!

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What does business car insurance cover?

The areas of coverage offered for business car insurance are similar to those under a standard car insurance policy. First and foremost, the same types of insurance apply, with comprehensive, third party fire and theft (TPFT), third party property damage (TPPD) and compulsory third party (CTP) insurance all on offer under business vehicle insurance. However, there are several additional areas which are specific to business cover.

Below are the key areas which can be covered under a comprehensive business car insurance policy:

• Damage to your vehicle due to accident or collision
• Damage to your vehicle due to fire or theft
• Damage to your vehicle due to weather (such as hail or flood)
• Damage to another person's vehicle or property
• Damage to, or loss of, tools of trade inside your vehicle (which are subject to coverage limits)
• Damage to, or loss of, signage or advertising on your vehicle (also subject to coverage limits)
• Accommodation or travel costs in the event the vehicle is unable to be driven
• Vehicle replacement if it's stolen or deemed a write-off

How is business car insurance different from commercial car insurance?

As mentioned, business car insurance is typically designed to cover vehicles which are used for both personal and business purposes but aren’t part of a fleet. On the other hand, commercial car insurance is more intended for companies which use specialised vehicles, such as heavy trucks, food vans, and delivery vehicles exclusively for business purposes. There are also policies offered designed for fleets of vehicles, which aren’t available with business car insurance.

Commercial car insurance policies may offer additional features which are tailored to the needs of businesses that use a fleet of vehicles, such as coverage for goods in transit and rental cars. Businesses which use a fleet of vehicles may also be required to obtain additional licenses and permits. However, you may also need other types of business insurance, such as public liability, to help cover your bases as a business.

The factors impacting the cost of your business car insurance

1. Business type

   The type of business you run and the amount of driving required for work can impact the cost of your insurance. For example, a sales representative who spends a lot of time on the road is likely to pay more than an office worker who only drives occasionally as part of their job.

2. Vehicle type

   The make and model of the vehicle, as well as its age, can affect insurance costs. Generally, newer and more expensive vehicles cost more to insure than older and less expensive ones, as the costs of replacing their parts or the vehicle in the event of a write-off are greater.

3. Driving history

   Your driving record, including any accidents or traffic violations, can impact the cost of your insurance premium. If you or any of the other registered drivers on your policy have a poor driving history, either due to a lack of experience or one or more traffic offences, you’re likely to pay more for insurance.

4. Coverage options

   The level of coverage you choose for your business car insurance policy will also affect the cost. A comprehensive policy which comes with a wider range of covered events will generally cost more than a third party policy with more limited coverage.

5. Optional Extras

   Car insurance companies often offer a range of optional extras for their policies, such as roadside assistance, personal effects cover and windscreen excess waivers, which can be included in your coverage for an additional premium. Although these may be useful for you, it’s important to consider how they may affect your premium.

6. Location

   Your business location can also affect the cost of insurance. Areas with higher rates of accidents or theft may result in higher insurance premiums. Additionally, where you’re residing and operating can make a difference to your premium, such as if you’re driving around Sydney or in country New South Wales.

Types of car insurance

Third party property damage (TPPD)

The most basic type of optional cover available, TPPD insurance can offer protection for damage caused by your vehicle to other people's property. However, no damage to your vehicle will be covered.

Third party fire and theft (TPFT)

A step up from TPPD, TPFT insurance can also cover damage to your vehicle sustained due to a fire or theft (or attempted theft) in addition to third-party property damage if you're in an at-fault accident.

Comprehensive

The most extensive (and expensive) form of cover, comprehensive car insurance can also offer cover for damage to your vehicle in an accident, collision and certain weather events on top of the areas TPFT covers.