What’s the difference between personal and business car insurance?
Personal car insurance covers everyday use like commuting and social travel, but it won’t protect you if you use your vehicle for business purposes—such as visiting clients, transporting tools, or making deliveries. Business car insurance is specifically designed for work-related journeys and can cover multiple drivers or trips to different sites. If you use your car for business and only have personal cover, you risk invalidating your policy and claims being rejected. There are also different levels of business use cover: Class 1 (simple business travel), Class 2 (for multiple drivers), and Class 3 (extensive use, like door-to-door sales). Always inform your insurer or broker about how you use your vehicle to ensure you have the correct cover. This ensures you stay protected and compliant, especially if driving is a key part of your role.
Can I insure multiple vehicles under one policy?
Yes, fleet insurance allows you to insure multiple business vehicles under a single policy. This simplifies administration, provides cost savings, and allows flexibility in managing your vehicles. Fleet policies can cover cars, vans, trucks, or a mix—whether owned, leased, or hired. Most insurers offer fleet insurance for as few as two vehicles, though better rates are available for five or more. You can choose between named driver or any driver cover, and also select from third-party only, third-party fire and theft, or fully comprehensive levels. Fleet insurance often includes extras like breakdown cover, courtesy vehicles, and legal assistance. It’s ideal for growing businesses or those with delivery staff, engineers, or sales teams on the road. Speak to your broker to tailor a fleet policy that suits your operations and budget.
Do I need special cover for delivery drivers?
Yes, if your business involves delivering goods, you’ll need hire and reward insurance—a type of commercial vehicle insurance that covers deliveries made in exchange for payment. Standard business or personal policies won’t cover delivery work. This applies whether you’re delivering food, parcels, or other items, and whether you’re self-employed or working for a platform like Uber Eats, Amazon, or a courier firm. You should also consider goods in transit insurance, which covers the items being delivered against loss, damage, or theft. Employers with multiple drivers may need fleet policies and employer’s liability insurance too. Failing to have proper cover can lead to fines, points on your licence, or denied claims. A broker can help arrange specialist delivery driver cover that keeps your vehicles, goods, and team properly protected.
Is my vehicle covered while travelling between jobs?
Yes, if you have the correct business use insurance, your vehicle is covered when travelling between client sites, job locations, or appointments. For example, tradespeople moving from one site to another or consultants visiting different offices are protected under Class 1 or Class 2 business cover. However, personal vehicle insurance typically excludes work-related travel other than commuting, so you need to upgrade your policy. It’s also wise to have tool or equipment cover if you carry items for work. If you’re using the vehicle as part of a delivery or transport service, you’ll need a higher level of commercial cover. Keeping your insurer informed about how your vehicle is used ensures you remain fully covered across all journeys and activities.
Can employees drive company vehicles under my insurance?
Yes, company vehicles can be insured for multiple employees under a fleet policy or a specifically arranged business motor policy. You can choose between named driver cover (each driver is listed individually) or any driver cover, which allows more flexibility but may come at a higher cost. It’s important to check the eligibility requirements—such as minimum age or driving history—for each driver. If employees use their personal vehicles for work purposes, they must also have their own business use cover; otherwise, they may not be insured during work-related travel. Always keep records of who’s authorised to drive company vehicles, and ensure employees are aware of their responsibilities under the policy. Your broker can help tailor the cover to your workforce and risk profile.
What’s included in fleet insurance?
Fleet insurance typically includes cover for all your business vehicles—cars, vans, lorries, or a combination—under one policy. It can cover third-party only, third-party fire and theft, or fully comprehensive options. Most fleet policies include:
Protection for multiple drivers (named or any driver)
Accident and damage cover
Breakdown assistance
Legal expenses
Optional courtesy vehicle cover
You can also add goods in transit, public liability, or employer’s liability as part of a package. Fleet insurance simplifies renewals, paperwork, and claims processes, which is ideal for businesses managing multiple vehicles or drivers. It also allows flexibility if vehicles change during the year. Premiums are usually based on vehicle types, driver profiles, claims history, and business activity. Your broker will assess your needs and find a policy that ensures full protection for your operations.
Does business motor insurance include breakdown cover?
Not always—breakdown cover is sometimes included with business motor insurance, but often it needs to be added as an extra. When included, it typically provides roadside assistance, recovery, and sometimes onward travel or vehicle replacement. If your business relies on vehicles daily, it’s wise to include breakdown assistance to avoid costly delays. Fleet policies often offer bundled options that include breakdown cover for all vehicles in your plan. When selecting a policy, check the level of breakdown service—some may only provide local recovery, while others offer national coverage and support for overnight stays. Your broker can advise on the right breakdown options to keep your business moving smoothly, especially if your team travels frequently across Birmingham or the wider West Midlands.
Can I insure electric or hybrid vehicles for business use?
Yes, most insurers now offer business motor insurance for electric and hybrid vehicles, and fleet policies can include them alongside petrol or diesel vehicles. Cover typically includes protection for the battery, charging cables, and damage caused while charging. As electric vehicles become more common, insurers are tailoring policies to reflect their specific risks and repair costs. It’s important to declare that your vehicle is electric or hybrid when arranging cover, as some parts (like battery packs) are expensive to replace. If you operate a green fleet, you may also benefit from sustainability discounts or specialist EV policies. With Birmingham’s clean air zone and broader environmental initiatives, electric business vehicles are a growing trend—make sure yours are properly insured with the right provider.
What’s the process for making a motor claim?
If you’re involved in an accident or your business vehicle is damaged or stolen, the claims process typically involves:
Notifying your insurer or broker as soon as possible.
Providing details of the incident (time, location, other parties involved, etc.).
Submitting any supporting documents, like photos, dashcam footage, or police reports.
Working with an approved repairer or claims handler.
Your insurer will confirm what’s covered and may provide a courtesy vehicle, breakdown recovery, or repairs depending on your policy. For fleet policies, a dedicated claims manager often streamlines this process. Delaying notification or omitting key facts can affect your claim, so it’s important to act quickly and honestly. Having a broker means you get help managing the claim and avoiding disputes. Good documentation, driver logs, and maintenance records can speed up the process and help with successful resolution.
