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 insurance||Commercial car insurance|
|Where to get it||In select comprehensive car insurance policies||Through 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.
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.
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.
|Brand||Monthly cost||Get quote|
|$120. 23||Get quote|
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?
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.
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.
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.
Average cost based on historical costs using our engine. Last checked April 2021
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.
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:
- Elders Insurance
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