Business Car Insurance FAQs

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Frequently Asked Questions

Business car insurance can be a tricky subject to get your head around, so we have compiled a list of frequently asked questions and answers to provide more insight into what it involves.

Whether you want to know about keeping your No Claims Bonus after using a company car or want guaranteed asset protection on your car lease, Keith Michaels can help.

Business Vehicle Insurance from Keith Michaels

Looking for more information about business car insurance? Keith Michaels have been arranging business car insurance policies for over 30 years. See how we can help.

Business car insurance covers the use of a vehicle for business-related activity. This includes driving between working locations, running errands, making deliveries and meeting clients. If you are involved in an accident whilst using your car for business purposes, you will not be able to make a successful claim if you do not have the appropriate business car insurance cover.
Yes. If you are a good driver, many insurance companies will be happy to include your no claims bonus from your personal car insurance in your business car insurance policy. This will have no effect on your current no claims discount on your existing policy.

Using a car for business purposes means you are likely to rack up significantly higher mileage than you would for personal use. This directly increases the risk of an accident. Furthermore, you will probably be driving in heavy traffic at rush hour, and driving in new places on a regular basis. There is also the possibility you will be parking your vehicle in potentially unsecure locations.
All of these factors add to the risk on the part of your insurer, which is why business car insurance premiums are typically higher than those for personal use.
You only need business car insurance if you are commuting for business-related activities, such as attending client meetings or transporting goods – whether you are self-employed or employed by a company. Using a car to commute to and from work is not considered to be driving for business reasons, however Class 1 business car insurance will cover you for such social, domestic and pleasure reasons in addition to business use.
Yes, but you will need to shop around for a specialist insurer as a number of mainstream providers may not be able to provide the appropriate cover for cars that are not legally owned by the driver. In some cases, large businesses will insure the vehicles their employees use for business use, whilst company cars should be automatically insured for both personal and business use. Find out more about company car insurance and what it involves.
Yes. Guaranteed Asset Protection is applicable for leased cars and is available in the form of Return to Invoice GAP Insurance or Finance GAP Insurance – depending on the type of lease you have. Find out more on our Leased Car GAP Insurance Explained page.
There are three types of business car insurance policy. The type of policy you will need depends on a variety of factors, such as how far you will be travelling between working locations, and the type of business purposes you need to drive for. More information on these and how you can apply can be found on our Business Car Insurance Explained page.
Yes you can, but you need to provide up-to-date proof of your built up NCB and a confirmation from your employer. Take a look at our Ex Company Car Insurance page for more information.
There are a number of things you can do to cut the cost of your business car insurance premium. Taking measures to secure your car, such as locking it in a garage at night or installing a safety alarm will show your insurer that there’s a decreased likelihood of it being stolen. Building up a no claims discount will also help to drive down the cost of your premium.
You can find more on our dedicated page on How to Keep Business Car Insurance Costs Down
Whether or not you take out an extended warranty is completely up to you. Your decision will depend on a variety of factors, such as how long you intend to keep the car. If, for example, you trade-in a car every couple of years, chances are the manufacturer’s warranty will be all that is needed to cover any repairs.

The value of your car is another important consideration. If you have purchased a brand new car for business use, while there is a reduced likelihood of it breaking down, it will be more expensive to repair due to its design and the cost of parts. Alternatively, if the car is older and has already covered a lot of miles, it could have more issues than newer models.

If you choose to get an extended warranty on your business car, policies can be comprehensive as you like and premiums can be adjusted accordingly.
Yes. Using a specialist insurer like Keith Michaels means you can get suitable business car insurance to meet your specific requirements – whatever type of contract hire or leased car deal you have taken out. We provide a number of schemes for both Personal Contract Hire (PCH) and Personal Contract Purchase (PCP)which are popular methods for financing a new car for business use. Take a look at our Contract Hire Car Insurance page for more information.
You need to shop around for a broker that has the policies in place to cater for your specific requirements. There are many different types of business car insurance and you will need to be prepared to answer a series of questions that your insurer will ask regarding your circumstances. Follow the link for an in-depth guide to Applying for Business Car Insurance.