Click here to view our festive opening times

Get a Quote

Business Car Insurance from Keith Michaels

  • Introductory Discounts for Company Car Drivers
  • Every client treated on their own merits – tailor made to you
  • Discounts for previous driving, Mirrored No Claims Bonus
  • Private and/or Business Use policies provided
  • We are a long established UK based company and do NOT operate a Call Centre
  • Instant cover available
  • Monthly payment options



Business car insurance premiums generally cost more because of the greater risks and higher liability limits the policies are designed to cover. Business users also tend to drive more miles than the average motorist, and at busier times on the road.

The cost of your business car insurance will vary depending on what type of business car insurance you have. If you’re running an occasional workplace errand in your car or visiting clients, you don’t need the same level of insurance as a commercial driver. If you’re not delivering things or driving extensively, you’ll likely only need class one business car insurance.

If you and your named drivers use a car for business, you’ll need class two, which will make your business car insurance cost extra. Finally, if you’re using your car for selling or other commercial use, you’ll need class three business car insurance.

How much does business car insurance cost?

The exact cost of business car insurance will depend on the class of vehicle being insured and the nature of your business use. If you’re unsure about which class of business car insurance you need, don’t worry. At Keith Michaels, we’ll take you through all the options and find out which class of business insurance is right for you.

Business car insurance does cost extra, but there are ways for individual drivers and business owners to keep their business car insurance costs down.

Reducing the extra cost of business car insurance

Companies & business owners

  • Choose Car Models Carefully
    If you are looking to purchase vehicles that your employees can use for business purposes, consider choosing models with smaller engines and better fuel efficiency. Avoid buying top of the line vehicles that can be expensive to insure. Older vehicles tend to be cheaper, but check with your insurance company beforehand to establish the most cost-effective models.
  • Manage Young Drivers
    Statistics show that young drivers aged 17-20 are more likely to make insurance claims, and on average the cost of these claims is three times higher than those made by any other driver. If you are looking to get business car insurance for young employees, take time to review your policies and ensure your employees are not using their allocated car for personal use if they have only been insured to drive for business purposes.
  • Keep On Top Of Vehicle Maintenance
    As an employer, you have a legal responsibility to ensure any vehicles you lease or own for business purposes are properly maintained, safe to drive, and conform to road traffic law. Maintaining these standards will help to keep your business car insurance costs down and will reduce the risk of accident and claims being made.
  • Optimise Vehicle Security
    The security of your vehicles is an important factor when it comes to reducing the cost of your business car insurance premium. When they’re not in use, try to ensure your business vehicles are locked in a secure car park or other safe location overnight. If your vehicles can be driven by your employees for personal use, make sure your staff are parking them on their driveways and not on the road when not in use. Installing security devices such as alarms, immobilisers and steering wheel locks will also help enhance the security of your vehicles – especially if they are used to carry equipment or tools for business purposes.


  • Ask For Contributions from Your Employer
    Some employers will pay for the extra business car insurance costs if you are using your car for business-related reasons, whilst others may contribute towards mileage during working hours. As of April 2015, the standard payment is around 45p per mile, although this may vary depending on the number of miles you travel. Although these payments won’t specifically cover the costs of your business car insurance, they will help to ensure your outgoings for business driving duties are considerably less.
  • Get the Right Business Car Insurance Cover
    There are different levels of business car insurance cover, and making sure you have the right policy in place is crucial when it comes to reducing costs. If, for example, you are only running the occasional workplace errand in your car, or visiting clients, there is no need for you to be paying for a policy that covers driving long distances for selling or commercial purposes.
    To find out more about business car insurance policies and which one is right for you, see our page on Business Car Insurance Explained.
  • Be Accurate About Your Mileage
    Another way to ensure your business car insurance costs are not too high is to get your average annual mileage estimate correct. When you apply for business car insurance, your insurer will ask how many miles you will be covering on behalf of your business or company every year. If you over-estimate, you will be paying for cover you don’t need. Remember, if you are not honest about the number of miles you cover and deliberately down play the actual amount, any claim you make could be refused and you won’t be entitled to any compensation if you’re involved in an accident.
  • Improve Your Vehicle Security
    Make sure you are taking the right steps to keep your vehicle safe and secure when it’s not in use. Leaving it parked on the road at night or in anywhere out in the open will increase the risk of theft or damage – both of which will increase the cost of your business car insurance premium. Installing security devices such as immobilisers, steering wheel locks or alarms will optimise security, while a tracker system will increase your chances of finding your car if it gets stolen.
  • Build Up a No Claims Bonus
    If you have a good no claims bonus record for your standard vehicle, you can use this when applying for business car insurance to reduce the cost of your premium. This will not affect the no claims on your existing policy.
    If you are an ex company car driver and want to find out more about your no claims bonus, take a look at our Ex Company Driver Insurance page.
  • Make a One-Off Payment
    Paying monthly for your car insurance may be the more manageable option, but it can add to the cost of your business car insurance overall. If possible, try to make a one-off payment every year rather than splitting the cost over 12 months. This will slash the interest, which can add hundreds to your bill.

Why use a business car insurance broker?

Using a dedicated business car insurance broker with tailor made policies is a great option if you are looking to keep your business car insurance premium costs down. At Keith Michaels we have a range of business car insurance policies to suit each customer, so you are guaranteed to get a good deal, whatever your commercial driving requirements.

To find out more and speak to one of our experts for a specialist option, take a look at our Business Car Insurance page.


Speak To Us Today

For a competitive quote from the market leader in specialist car insurance, don't delay!

Request A Callback