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Business and Commercial Car Insurance

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

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If you drive a ute for work or are looking to insure work cars for your employees, you're probably wondering which car insurance policy you should go with. Business car insurance is best for those who use the same car for business and personal use, while commercial car insurance is more suited to vehicles involved in heavy-duty work. In this article we'll run through both options so you can decide which might be best for you.

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What's the difference between business and commercial car insurance?

A business car insurance policy covers vehicles that are used in regular day-to-day driving situations. It's essentially a type of personal car insurance policy that has been extended to protect you if you use your car for business purposes as well. It's sometimes called business use car insurance.

Commercial car insurance, on the other hand, is usually offered through a qualified broker and is tailored to vehicles that perform specific work tasks, like a ute, cement truck or trailer. If you deliver goods, tools or other equipment, and use the vehicle primarily for work, you'll most likely need commercial car insurance.

Business car insuranceCommercial car insurance
Best for
  • Commuting for work purposes
  • Ridesharing (conditions apply)
  • Some business activities like part-time food delivery
  • Heavy work trucks like cement trucks or trailers
  • Delivery vehicles
  • Motor fleets
  • Vehicles carrying expensive equipment
Where to get itIn select comprehensive car insurance policiesThrough a broker

Business car insurance

Who is business use car insurance best for?

Business use car insurance is usually for people who use their car for business and personal use, for example if you commute using a work car. It is probably best suited to people who:

  • Want personal comprehensive car insurance with some added cover for business use
  • Want to use their car for personal use as well as commuting for work, for example driving to various locations for business
  • Want to Uber, so long as they're the registered owner and driver of the vehicle
  • Want to use their vehicle for specific business activities like part-time food delivery that generally does not involve heavy-duty work or expensive equipment

What is business use?

Business use is usually defined by the kind of work that doesn't involve a car as a pivotal part of earning your income. Since this is a pretty broad definition, it can include people who use their car to get to different work locations throughout the day. For example, if you're a real estate agent showing properties at a number of locations, business car insurance can cover you. Other similar examples include:

  • Road salesperson or tradesperson
  • Real estate agent
  • Assessor or surveyor
  • Community service worker

Business use can also cover ridesharing like Uber, but it's worth keeping in mind that this is not true of all insurers. For instance, some only cover you if it's not your primary source of income. You also generally need to be the registered owner and driver of the vehicle. If you're having difficulty getting business car insurance for Ubering, you might need to get rideshare insurance instead.

Who offers business use car insurance?

Figuring out what kind of business use an insurer covers can be tricky, so we've put together a table on how and what is included.

InsurerHow is it covered?Examples
Budget Direct LogoCovers you for occasional business use that "does not form an essential part of earning an income" and where the car isn't registered for business useCommuting for work, e.g. travelling to different job sites
Picture not describedCovers you for occasional business use that "does not form an essential part of earning an income" and where the car isn't registered for business useCommuting for work, e.g. travelling to different job sites
Picture not describedCovers business use including ridesharing (they will list down that the vehicle is used for business)Commuting for work and ridesharing
Stella car insurance logoCovers business use, including use of your car for personal purposes, but not ridesharingCommuting for work, e.g. travelling to different job sites
Coles InsuranceCovers you for either private purposes or business purposes. It specifically references occupations like a nanny, babysitter, tradesperson, salesperson or representativeCommuting for work, e.g. travelling to different job sites, babysitting and salesperson
Virginmoney logoCovers you for occasional business use that "does not form an essential part of earning an income" and where the car isn't registered for business useCommuting for work, e.g. travelling to different job sites
Real insurance logoCovers you if you use your car for both private and business use, but not business onlyCommuting for work, e.g. travelling to different job sites
Kogan insurance logoCovers you if you use your car for both private and business use, but not business onlyCommuting for work, e.g. travelling to different job sites
Picture not describedCovers:
  • On-road professionals including salespeople, real estate agents, assessors, community service workers, driving education with dual controls
  • Uber driving but only if you're the registered owner and driver of the vehicle
  • Tradespersons and couriers but only if:
  • Owned and operated by the same company that owns the goods being transported, or
  • Used by a mail contractor delivering Australia Post Mail, or
  • Used for pathology, e.g. blood or organ transport, or
  • Used for part-time food delivery
Commuting for work, Uber driving, tradespersons, food delivery
NRMA logoCovers:
  • Trades
  • Food and beverage
  • Farm
  • Motor trades
  • Retailing
Commuting for work, Uber driving, tradespersons, food delivery
Picture not describedCovers:
  • Courier vehicles
  • Delivery driver education vehicles
  • Takeaway food delivery vehicles
  • Trade use vehicles
Commuting for work, Uber driving, tradespersons, food delivery
Woolworths car insurance logoCovers you if you use your car for both private and business use, but not business onlyCommuting for work, tradespersons, food delivery
Picture not describedCovers:
  • On-road salesperson and tradesperson
  • Ridesharing if you are the owner of the car and are registered with a provider
Commuting for work, Uber driving, salespersons

What does business car insurance cover you for?

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.

Similarly, every policy comes with exclusions you need to look out for. We've listed some of the things you won't be covered for with specific insurers.

InsurerExclusions
Budget Direct Logo
  • Ridesharing like Uber
  • Delivery driving
  • Driving tuition
  • Hiring the car to other people
Picture not described
  • Ridesharing like Uber
  • Delivery driving
  • Driving tuition
  • Unpaid driving tuition of a person who is excluded on the insurance certificate by name or age, or unlisted household member
  • Hiring the car to other people
Stella car insurance logo
  • Ridesharing like Uber
  • Delivery driving
  • Any business use other than that shown on your certificate of insurance
Virginmoney logo
  • Ridesharing like Uber
  • Delivery driving
  • Unpaid driving tuition of a person who is excluded on the insurance certificate by name or age, or unlisted household member
  • Hiring the car to other people
Real insurance logo
  • Delivery driver
  • Hiring out the vehicle as a rental car
  • Professional driving instruction
  • Vehicle racing (professional or amateur)
  • Taxis
Kogan insurance logo
  • Delivery driving
  • Hiring out the vehicle as a rental car
  • Professional driving instruction
  • Vehicle racing (professional or amateur)
  • Taxis
Picture not described
  • Using the vehicle for making any kind of money
NRMA logo
  • No cover if you use the vehicle 100% of the time for ridesharing
Picture not described
  • Cover only if it is not full-time or a primary source of income for special occasion hire
Woolworths car insurance logo
  • Delivery driving or ridesharing
Picture not described
  • Driver education
  • Hire/courtesy/car sharing scheme
  • Racing/sporting events
  • Taxi
  • Courier/delivery driver
  • Removalist

How much does business car insurance cost?

Business car insurance costs differ depending on things like your age, occupation, the vehicle you drive and the area you live in. To give you an idea of costs though, we've put together quotes based on a male driver born in 1985 driving a 2018 Toyota Corolla worth an agreed value of $20,000 and an excess of $850 where possible. The driver lives in Sydney and drives 15,000 kilometres a year.

Keep in mind that these costs aren't indicative of what you can expect to pay as it will depend on your own circumstances, but it could be useful to see the cost differences between brands.

BrandMonthly costGet quote
Budget Direct Logo$106.23Get quote
Picture not described$120. 23Get quote
Coles Insurance$154.46More info
Virginmoney logo$108.85Get quote
Real insurance logo$153.53More info
Kogan insurance logo$153.53More info
Stella car insurance logo$122.01Get quote
Picture not described$96.08More info
Picture not described$120.78More info
NRMA logo$110.27More info
Woolworths car insurance logo$146.08Get quote
Picture not described$130.73More info

Commercial car insurance

Who is best suited for commercial car insurance?

Commercial car insurance covers vehicles used for business purposes. This could include moving materials between different work sites, delivering or transporting goods, visiting clients and customers in different locations and numerous other possible uses. Commercial vehicle insurance is 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 to be 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.

There are two main types of commercial car insurance

The two main types of commercial car insurance are commercial motor insurance which covers individual business vehicles against damage and legal liability, and commercial motor fleet insurance which covers multiple business vehicles.

Any business owner can take out commercial motor insurance on their company vehicle, but to qualify for commercial motor fleet insurance a business must own or lease a certain number of vehicles (usually around 15 or so).

What kind of commercial car insurance should I look into?

spa center

Public Liability

PI insurance protect you when you injure someone or damage someone's property - two things that are easy to do in a vehicle. This type of cover can help you avoid thousands of dollars in damages.

  • Required
  • $53

Portable equipment

If you carry computers, tools, cameras or other work equipment in your vehicle, PE insurance will protect your equipment from theft and damage in the vehicle and at the worksite.

  • Recommended
  • $43

injured person

Personal accident insurance

Being on the road a lot can increase your chances of an accident. If you get injured and temporarily can't do your job, PA insurance can offer a source of income while you heal.

  • Recommended
  • $84

Average cost based on historical costs using our engine. Last checked November 2020

How do I get commercial car insurance?

Commercial car insurance is usually offered through a qualified broker. This type of insurance is for business purposes, which usually means there's a lot more money at stake. That's why professional advice goes a long way; it can provide peace of mind knowing that everything has been taken into account. To get started with your enquiry, fill in your details below.

Receive a Quote for Commercial Car Insurance

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.
FBI Lender Logos

Who offers commercial car insurance?

Want to know the insurers you'll be dealing with? Here's a list of some of the providers offering commercial car insurance:

  • GIO
  • Elders Insurance
  • QBE
  • Zurich
  • CGU
  • RACQ

Picture: GettyImages

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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!

      Cheers,
      Joshua

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