Commercial car insurance for travelling: learn more about temporary business insurance

An essential safeguard for businesses across the UK, commercial car insurance is something that all companies should have.

Whether you run a fleet of vehicles for deliveries or taxi services – or have a few cars to use for client visits, this insurance protects the company.

Unlike personal car insurance policies, commercial car insurance is designed for the unique risks faced by businesses in a variety of industries.

This is because without it, even a minor incident could lead to costly downtime and scheduling issues.

In this insurance guide, we explain what it is and why it is something your company should look into.

Do I need business car insurance?

Yes, you will need business car insurance if you’re using the vehicle for anything relating to working at your company.

So, if you’re using the vehicle for anything beyond personal or social purposes, you’re likely going to have to get business car insurance.

This is because standard car insurance covers everyday use – including travelling to and from work – but nothing relating to working.

Drivers who travel to clients, carry passengers to an event, or make deliveries will need business car insurance.

It ensures that you’re legally protected, and gives the business owners and executives peace of mind that should anything happen to the vehicle, they are covered.

What is commercial travelling?

Commercial travelling relates to using a vehicle for work purposes beyond commuting to and from an office, work site, or business park.

It often involves travelling to meet clients, attend meetings or events, and making deliveries.

Several roles within businesses require employees to visit other places – and this is where commercial car insurance is essential.

Unlike standard business use, commercial travelling usually involves higher mileage and a wider travel area – increasing the risk in the view of insurers.

This is why specialist cover is often needed to ensure both the driver (and vehicle) as well as the business are protected while carrying out company activities.

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What is commercial travelling car insurance?

Commercial travelling car insurance is a type of cover that is designed for people who regularly drive to different locations as a part of their job.

It applies to many industries – from truck drivers, couriers, taxis – to executives on client visits and travelling to events.

Frequent visits for business use and over greater distances carry different risks in the eye of the insurance industry – and so this specialist cover is essential.

Without the correct policy, it can lead to major legal issues.

Standard car insurance cover will not be valid for business use, leaving the company exposed to financial and legal consequences.

What is commuting on car insurance?

In car insurance, ‘commuting’ refers to when you use your vehicle to travel for everyday use – including driving to work or to see friends and family.

This is different from ‘social, domestic, and pleasure’ (SDP), which you will see when applying for regular car insurance.

Without car insurance, it is illegal to drive your vehicle on the road.

If you do, and are involved in an incident, it could lead to legal issues and a large bill.

With business car insurance, ‘commuting’ relates to part of the policy where a vehicle is insured to travel to one fixed workplace or location.

For travellers who need to visit more than one location, then they will need a full business car insurance policy.

This is why choosing the right level of cover ensures that you are covered for all relevant eventualities.