Your employer generally insures the company cars, but if you are using your personal vehicle for business, things might get a little tricky. Are you concerned about insuring your corporate vehicle? You don’t have to be.  

In most circumstances, your employer is responsible for obtaining insurance. They’ll get a policy that includes all of the company’s vehicles and the company’s employees for both private and business mileage. You can inquire from your boss or fleet manager, but you might be surprised to learn that you aren’t insured by your company.

Company car insurance

What if I need to drive my own car for business?

This is when things become a little trickier. If your business doesn’t provide you with a vehicle and you take your personal car for business travels, you’ll have to consider insurance. Don’t expect that a “fully comp” policy will cover all situations and types of trips. 

Verify whether you have a ‘social and commuting’ cover, a ‘social’ insurance cover, or ‘business car’ insurance. The most basic type of insurance is social insurance, which covers activities like going to the store, going to the gym, and visiting family and friends — the kinds of activities that many of us take on a daily basis, whether or not we are using the car for business. 

Commuting is a major exemption from social insurance. Even if you generally walk, or take public transportation, you will still require social and commuting cover (SPD+C) if you drive your car to get to work. If you lack commuting insurance and have an accident on your way to work, your insurer may decline to pay up.

Work trips that aren’t just commuting are handled differently. If you want to use your own automobile instead of a work car, you’ll require business insurance.

Warning triangle in front of car crash

What should I know about commercial insurance?

The very first thing you should know is that there are various types of business insurance, and the type you require will be determined by the types of business trips you take.

Class 1: This is the most basic, and it covers you for the occasional journey to head office or a customer, but it will not protect you if you are taking the work trips every day.

Class 2: This includes named drivers, allowing you to split the driving duties on business travels. All you have to do now is include any coworkers who will be driving.

Class 3: This is designed for salespeople and other individuals that spend a lot of time driving. This is the cover to use if your vehicle serves as your office. It will, however, be more costly than Class 1 or Class 2 insurance.

If you’re unsure, contact your insurer and explain the types of trips you’ll be taking and how often you’ll be doing them to see what they recommend.

People arguing after car crash

Is there anything more I should know?

It’s important to know the distinctions between business and commercial insurance. Commercial insurance, rather than any of the three types of business insurance, might be a perfect choice if you transport people or things.

If you’re unsure, contact your insurer or an insurance broker, who will be able to help you choose the best form of coverage.

Is it true that I’d be better off with a company car?

Most likely. You’ll be getting more miles on the car and burning through consumables like tires at a greater rate if you start driving to work. You can expect your company to refund your expenses, usually at authorized mileage rates, which are the maximum amount you can be compensated without having to pay taxes on the payments.

If your workplace offers a company car program and you are able to participate, it is likely to be less expensive than driving your own car; you also won’t have to be concerned about insurance for the company wheels.