Business car insurance explained

A standard car insurance policy covers your car for so-called social, domestic and personal use, which includes everyday driving such as visiting friends, the shops or a day out.
Many policies also automatically cover your car if you commute to and from a regular place of work. So, if you drive the car to the same office every day, or park in the same station car park, you would be insured.
But what if you drive to several different offices or work sites? Perhaps a colleague regularly takes your car to visit clients. Or maybe you drive hundreds of miles a week for business purposes. If so, you will almost need business car insurance. It is often more expensive than standard motor insurance, but it is important to get the right cover for your needs.

Higher premiums

Business car insurance is typically more expensive than standard cover because a motorist who drives a vehicle for business as well as pleasure is deemed more risky. They will usually cover more miles, sometimes in heavy traffic and on unfamiliar roads. The chances of a claim therefore increase.
Don't be tempted to lie in an attempt to bring down the cost of insurance. When you apply for business car insurance quotes, the insurer will ask the usual questions about your age, postcode, and the make and model of the car. But you will also have to give details about your business and when and why you drive the vehicle for work. If you are dishonest, you are committing an offence and it could invalidate your policy. Your insurance would not then pay out in the event of a claim.

Find cheap business car insurance quotes

Motorists usually pay more for business car insurance so it is especially important to try to keep costs down. One way to save money is to compare quotes from a number of different insurers - and it's easy with MoneySupermarket's online car insurance comparison service.
Motorists can also choose their vehicle with care. Insurers place cars in one of 50 groups - and cars in group one tend to be the cheapest to insure.
Security is another important factor as a secure car is less likely to be stolen. You can often reduce your premium if you fit an approved alarm and immobiliser - and keep your car in a locked garage overnight.
Insurers reward careful drivers with lower premiums, so try not to claim unless the damage is serious. You can then build up a no claims discount and potentially cut the cost of cover by as much as 75%.
No one wants to pay over the odds for business car insurance but it is also important to remember that the cheapest policy is not always the best. You might, for example, want to pay a litle bit extra for more extensive cover.

New rules on car insurance

When buying classic car insurance - or any type of motor insurance - you need to be aware of a new ruling on gender which came into effect on 21 December 2012.
The new ruling from the European Court of Justice bans insurers from charging men and women different rates based on their sex.  In the past, young women got cheaper motor insurance because they have fewer costly accidents than young men. This has changed now that the directive has come into force, meaning young women drivers could now find themselves having to pay more for cover.

How to get cheap classic car insurance quotes

The good news is, there are several simple steps you can take to keep a lid on the cost of classic car insurance:

• Ask your insurer if they will offer you a lower premium if you agree to a lower mileage limit.
• Consider joining a recognised car club, as this could mean a discount of around 15% on your policy.
• Think about whether you are happy to have just third party fire and theft cover, as this can be cheaper than fully comprehensive cover. But remember that this cover is far more limited, and may not offer the same peace of mind. You should also steer clear of buying insurance on price alone, as you need to check you have the right level of cover for your particular circumstances.
• If you need to take your classic car off the road for a period of time for repair or restoration, you can make savings by taking out what is known as a “laid up” policy. This will cover the car against fire, theft or damage, provided the vehicle is kept in a garage. But as mentioned above, you must declare the car is to be kept off the road to ensure you comply with the new rules on continuous insurance enforcement. 
• Finally, as classic cars can be particularly attractive to thieves and vandals, it's vital that you take all the security precautions you can, and that you fit approved devices, and keep your car in a locked garage. 

How much will I pay for classic car insurance?

There are a host of specialist classic car insurance companies which cater specifically for this sector of the market. However, you may also be able to purchase classic car insurance cover from a mainstream insurer. Crucially, as the cost of cover can vary considerably from one insurer to the next, you need to do your research.  The best way to compare costs is by using a price comparison service such as MoneySupermarket.
As mentioned above, you don't have to worry about having to fork out a hefty sum for cover, as policies tend to cost less than policies for more modern vehicles. This is because classic cars tend to be better maintained and driven far less than other vehicles - which results in a lower number of claims.  And this translates into cheaper premiums.

What is covered by a classic car insurance policy?

While a comprehensive classic car insurance policy is broadly similar to a policy for a modern vehicle, there are a few crucial differences that you need to be aware of.
First off, the valuation of a classic car is very important, as it can be quite tricky working out the “true value” of an older or vintage vehicle. The danger here is that if your policy states that it will pay out the “market value” in the event of a write-off, this payout may not reflect the true worth of the vehicle.  To get around this problem, it's advisable to agree a value with the insurer when you apply for the policy.

You can get a valuation carried out by an approved and recognised industry expert before arranging your policy. There may be a cost for this service, but this is a price worth paying to ensure that if the worst happens, you get the right payout.
In addition, you should also talk to your insurer about being able to update the agreed value of the vehicle each year, as some vintage models will increase in value as they get older. Fail to update the policy, and you will not get a payout that reflects the current value.
When setting up a policy, you should also check the replacement parts policy before handing over any cash. This is particularly important if your car is very valuable, as you will want to be sure that any replacement parts are authentic.
While it's possible to get a cheaper policy which does not guarantee to replace parts with authentic pieces, you need to work out whether it's worth paying more to have this additional cover.
With a classic car insurance policy, you also need to find out about the maximum mileage, as insurers set this based on the proviso that classic cars are driven less often than more modern vehicles. Generally speaking, this limit is around 7,500 miles a year, so make sure you check what happens if you go over this limit in any one given year; in some cases this could render the policy invalid. Ask your insurer whether there is any option to change the agreed mileage in the future.

In addition, you need to be aware that with a classic car insurance policy, you do not build up a no-claims discount. As you will pay a flat rate for your cover, it's all the more reason to spend time shopping around for the right policy at renewal time.
Further, given that many classic car owners take their vehicles to events such as shows and rallies, it's worth checking if you are covered - and whether that cover extends to shows and rallies overseas, or if you need to pay an extra premium for this.
Drivers who hire out their classic car for weddings will almost certainly have to extend their cover because most policies do not include cover for use of the car for “hire and reward.”

Classic car insurance for young drivers

While classic cars have long been associated with older motorists, younger drivers may also want to drive one of these vehicles.
As a younger motorist, it can be hard to find affordable cover because insurers will view these drivers as a higher risk than older motorists, and charge them more for cover. The best way to keep a lid on costs is by shopping around for cover to find the most competitive deal that offers the level of cover you require. Once again, the simplest way to do this is by using a price comparison site such as MoneySupermarket.com.

Insuring a classic car: how to protect your prized vehicle

Proud owners of classic cars often lavish their vehicles with care and attention. But do they take as much time and trouble over their motor insurance? A classic car insurance policy is often cheaper than insurance on a modern vehicle, but it pays to make sure that you buy the right cover for your prized possession.
Some enthusiasts only take their cars onto the road during the summer months. Previously they could let their insurance lapse over the winter when the car was off the road. But they could now fall foul of a new insurance law, which makes it an offence: if you car is taxed it must now also be insured. 
If you don't drive your classic car at all, you should apply for a Statutory off Road Notification. Insurance and road tax are then no longer mandatory.Even if you only take your prized possession out on the road during the summer months, you still need to have the correct cover in place. If not, you risk falling foul of new rules, known as continuous insurance enforcement (CIE). Under these rules, it is now a legal requirement to have a classic car covered by a relevant policy at all times. The only scenario in which this is permitted is if the owner has declared it off-road with a SORN (Statutory off road notice). If you apply for a SORN, insurance and road tax are then no longer required.

What's the definition of a classic car?

When it comes to stating what does and doesn't qualify as a classic car, there's no fixed definition which is accepted by all car insurers. For tax purposes, if you drive a car that is more than 20 years old and worth more than £15,000, this is classified as a “classic” by HM Revenue & Customs. However, given the lack of a fixed definition, it's always worth talking to the insurer before signing up to any deal. This will ensure you take out the right level of classic car insurance cover for your particular vehicle.

Some myths you need to consider when you shop for car insurance

If you’re among those who think buying car insurance as an unnecessary expense, then it’s high time you consider the importance of having your own policy. Just like when human beings fall sick, they go to the doctor for check-up similarly, when your car meets with any accident, you’ll require adequate coverage for it. Thus, it’s vitally essential to buy sufficient car insurance in advance so as to keep your vehicle protected. Buying the right insurance can be complicated for you if you don’t know its pros and cons. Since misapprehensions can be expensive, here are the most common car insurance myths demystified. 

Myth 1: Red cars are believed to be the most costly to insure

Fact:Approximately 25 percent of drivers believe that the car’s color is an important factor to determine the insurance rate, particularly if their car is red. However, the belief that red car drivers pay high car insurance premium is definitely a myth. The insurance companies will not ask your car’s color when they’ll work out your car insurance rates. The concept may have come due to the fact that people who drive red sports cars are irresponsible by nature. You need to know that car insurance companies are interested in the year, model, make, engine size, body type and age of your vehicle. Though the color may be a concern for you, it will not matter at all to your insurance company.

Myth 2: Thieves choose to steal new cars

Fact:As per the statistics, thieves actually choose to steal older cars. The reason why older vehicles rule the list is they can be targeted easily by the thieves. Since people are keeping their cars for long even in the tight economy, there has developed a strong market for the used parts that have come from the stolen vehicles. However, if you’ve an older vehicle and have decreased comprehensive coverage in order to save money, then you aren’t covered for theft. Also, you won’t qualify for rental car coverage.

Myth 3: Car insurance will cover if your vehicle gets stolen or damaged from fire.

Fact:If you do not have comprehensive coverage, you will not get coverage in case your car gets stolen or damaged from fire or hail. A bare-bones policy in most of the states will require you to purchase liability coverage. This pays only for the damage that you may cause to other people. Buy both comprehensive and collision coverage to secure your car completely from all kinds of damages. Comprehensive coverage covers the damages to your car that have not taken place due to car accident. This consists of theft, damage, fire and accidents. Collision coverage pays for the damage to your vehicle due to car accident.

Though price is very important when you want to purchase insurance, it is not at all the only consideration. It is also vitally important that you buy the right amount of coverage for your vehicle. So, shop around thoroughly and compare between several policies before you may decide to spend your hard-earned dollars in buying the right policy for your precious car.

Sam is a financial writer and a blogger. He writes content on insurance topics and get them published across the web. He is also associated with a few insurance communities and takes part in discussion with regards to insurance related queries.