Business Car Insurance

Using your vehicle for business? You can get regular car insurance or a commercial car insurance policy.


Business use car insurance is a way of extending personal policies so you're also covered when driving the car for business purposes. It mainly applies to situations where you use the same car for business and personal use but in some cases it will even cover you when it's a full-time business vehicle.

Cars involved in heavy-duty work or those hauling tools, equipment or products will usually require commercial car insurance instead.

Compare comprehensive policies that cover business use

CompanyDo they offer cover for business use?How is it covered?Get Quote
Budget Direct Logo Image: Supplied

Budget Direct

  • Yes
Covers you for occassional business use that 'does not form an essential part of earning an income' and where the car isn't registered for business use. This means that they won't cover you for things like Ubering, delivering goods, and renting a car to other people. This policy would probably work for those who commute through a work car.Get Quote
Bingle logo


  • Yes
Bingle states that they do cover you for business use. You can get cover for Uber or Lyft driving. However they won't cover you if you're delivering goods, are a paid driving instructor, or a taxi driver, amongst others.
Hume bank logo Image: Supplied

Hume Bank

  • Partially
Will only cover you for ridesharing.
Virgin money logo Image: Supplied

Virgin Money

  • Yes
Covers you for occassional business use that 'does not form an essential part of earning an income' and where the car isn't registered for business use. This means that they won't cover you for things like Ubering, delivering goods, and renting a car to other people. This policy would probably work for those who commute through a work car.Get Quote
Youi Logo Image: Supplied


  • Partially
Will only cover you for ridesharing.Get Quote

*To help you decide which policy suits you the most, make sure to read the product disclosure statement (PDS).

What is business car insurance?

Business car insurance is a personal car insurance policy that has been extended to protect you if you use your car for business purposes. It's also called business use car insurance.

This type of cover could be great for people who use their car for business and personal use, for example if you you deliver pizzas after class or you drive Uber part-time on the weekends.

When might it be better to get a commercial car insurance policy?

Commercial vehicle insurance is a separate type of insurance that covers you for a wider range of business-related uses.

It's probably a better choice than business use car insurance if you:

  • Need to insure a fleet of vehicles.
  • Carry a lot of expensive tools, products or equipment that also needs insured.
  • Use your vehicle for heavy-duty work like towing or earth moving.
  • Want to insure yourself against lost income if your car breaks down.

In fact, many insurers will not offer you business use car insurance in these instances.

What level of business car insurance can I get?

It differs from brand to brand, but you can find car insurance that covers you for business use at every level of cover including:

  • Third-party property damage (TPPD). This covers damage you cause to other people's property including their car, the stuff inside it and anything else along the road.
  • Third-party fire and theft (TPFT). This covers what TPPD does plus damage to your car due to fire and theft.
  • Comprehensive. This covers what the other two do, plus a wide range of other damages to your car including storm, hit and run and even damage you cause.

Most policies will require you to take out a comprehensive policy if you use your car for ridesharing even though they may offer the other two levels of cover for other types of businesses.

How do I get business use vehicle insurance?

If you're pretty sure you won't need commercial vehicle insurance, you can go ahead and apply for business use car insurance just as you would a personal policy.

  1. Just click on "get a quote" and fill out the application for a personal car insurance policy as normal. Depending on the insurer, you may be required to take out comprehensive policy, especially if you're doing rideshare.
  2. The application will ask you how you plan on using your car. Each insurer words it a little differently, but they will want to know whether you will be using it for personal use, business use or both. They may even include "rideshare use" as a third option. Select the option that best describes your situation.
  3. If prompted, select the type of business that you'll be doing. At this point, the application might not let you proceed if the nature of your business is better suited to commercial car insurance.
  4. Declare whether you are registered for GST and whether you are entitled to an input tax credit on your premium. Most business policies will deduct an amount equal to your input tax credit entitlement on any payment made.
  5. If you are allowed to proceed, fill out the rest of the application as normal.
  6. If you are happy with the quote, you can purchase the policy.

If you already have insurance on your car and want to extend it to include business use, all you have to do is ring your insurer and let them know how you intend to start using your car going forward. They will walk you through the process and offer a new quote if necessary.

What does business vehicle insurance not cover?

You business use car insurance policy will typically have the same general exclusions as most other car insurance policies, for example you'll be denied if you drive under the influence of drugs or alcohol and you won't be covered for general wear and tear to the vehicle. You can find out more about general exclusions here.

In addition to the general exclusions, you'll find a few more exclusions specifically related to business use. Your business use car insurance policy will not typically cover you for claims involving:

  • Motor industry tests or demonstrations
  • Renting or hiring the vehicle out to other people, or if it's someone else's possession for sale purposes
  • Racing your vehicle
  • Tools of the trade
  • Damage to the vehicle as the result of bitumen or concrete setting on it
  • Unsafe use of cranes in connection with the vehicle
  • Any asbestos liability
  • Financial loss resulting from the vehicle being unusable

Does business car insurance cover company employees?

If you're insuring a single car for business use, there's nothing stopping you from allowing employees to drive it. All you would have to do is list them on your policy as listed drivers. If you don't have them listed, then you would have to pay an additional excess called an unlisted driver excess if one of them causes an accident. This would be placed on top of your standard excess.

However, if you have a fleet of cars and multiple employees driving them, business use car insurance would no longer be adequate and you'd need commercial car insurance instead.

How much does it cost?

Cars that are used for business purposes tend to be on the road a lot more, which makes a significant difference to the likelihood of being involved in an accident. As such, it generally costs more to insure a vehicle for both personal and business use than it does to insure it for personal use alone.

The cost of a business use vehicle policy is determined by the policy options you select, as well as factors such as:

  • The make, model and year of vehicle
  • Your age, gender and driving history
  • Where it's usually parked
  • It's primary use
  • The types of damage it is likely to be subject to
  • The number of people who will be driving it

Looking for commercial car insurance instead? You might prefer speaking with a business insurance broker

Receive business insurance quotes from a qualified broker

If you are ready to speak with a consultant about different business insurance options available, simply enter your details in the form. Keep reading if you want to learn more about the different types of cover available.
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2 Responses

  1. Default Gravatar
    GloriaMarch 7, 2019

    Would I need business car insurance if I only work at home? However, I occasionally drive my car to work.

    • Avatarfinder Customer Care
      JoshuaMarch 7, 2019Staff

      Hi Gloria,

      Thanks for getting in touch with Finder. I hope all is well with you. 😃

      Basically, you would only need business car insurance if you are using your car for business purposes. Since the majority of the time you are working in your home, your car might only be considered as a car for personal use.

      For this reason, you might be interested instead of checking other types of car insurance policies here. On that page, you will be able to compare car insurance side-by-side and get quotes. You can also check different types of car insurance as well as how to switch policies.

      Once you find a car insurer, they would most likely provide a policy that would best fit your needs and preference. From there, you should be able to confirm whether a business car insurance is right for you or not.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!


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