If you use a vehicle for business purposes, you must ensure that your car, van, truck, or lorry – or your fleet of vehicles – is covered by the most appropriate commercial auto Insurance policy. Making the wrong decision could disrupt your company’s operations, leaving you out of pocket and vulnerable to liability.
Small-business owners who use their vehicle for business purposes, such as driving to work sites or meeting clients, delivering goods and hauling tools or supplies, or who have employees who drive the vehicle, must have commercial auto insurance.
This includes independent contractors and self-employed individuals. However, if you use your car for work on a regular basis, it is your employer’s responsibility to ensure it is for work-related driving, whether or not they own the vehicle.
We’ve written this article to help take the guesswork out of finding the best commercial car insurance in the UK.
What is Commercial Auto Insurance
Commercial auto insurance is a business insurance policy that applies to automobiles owned or used by your company and protects your company from liability for damages caused by accidents involving your company’s automobiles.
If your company owns vehicles, a commercial auto insurance policy can provide valuable financial protection to you and your employees while driving a company-owned vehicle, a hired or personally-owned vehicle in the course of business.
It is critical to understand that a personal automobile insurance policy does not typically cover vehicles used in the operation of your business.
Why Do Small Businesses Need Commercial Auto Insurance?
You need commercial auto insurance to protect your company from financial loss. A commercial auto insurance policy protects you from having to pay for victims’ losses out of your own pocket. Instead, your insurance company will cover all of your victims’ medical expenses and auto repair bills. Depending on the type of coverage in your insurance policy, it may even pay for your vehicle repair bills.
A catering company, for example, needs commercial vehicle insurance to protect itself from financial loss due to food spoilage.
Also, construction vehicles also require insurance because they are more likely to cause massive damage in an accident. If you begin using a car for business purposes, you should obtain commercial auto insurance before driving.
Top Commercial auto insurance companies in the UK
With so many car insurance providers in the UK, it’s easy to become overwhelmed – and many people choose policies based solely on price via comparison websites when finding an insurer should really be about much more – who offers the best coverage for a reasonable price, who provides an excellent level of customer service, and efficient claims process, and easily accessible ways to manage policies and make payments.
To make things easier for you, here are the top commercial auto insurance providers in the UK:
- Churchill
- Direct Line
- Admiral
- Aviva
- Hastings
Dial Direct
This is one of the largest insurance companies in the UK, serving over one million customers with the car, van, and home insurance. Its policies include a variety of features and benefits, allowing customers to choose a comprehensive insurance product that meets their needs and lifestyle.
The comprehensive car insurance policy offered by Direct Dial covers loss or damage caused by accidental or malicious damage, fire, theft or attempted theft, or vandalism.
Direct Line
Direct Line Group has a number of brands, products, and distribution channels to provide customers with a variety of options for protecting their automobiles, homes, pets, businesses, and travel plans. Its car insurance solutions aim to provide low-cost but high-quality policies by including benefits like a guaranteed hire car, onward travel, and a fair claim commitment.
Admiral
Admiral offers three types of car insurance coverage: comprehensive, third-party only, and third-party, fire, and theft. It also comes with a plethora of benefits, such as windscreen coverage, a courtesy car, and extended coverage for policyholders driving abroad.
Aviva
Aviva plc is a multinational insurance company with over 33 million customers in 16 different countries. Its car insurance coverage levels include comprehensive, third-party, fire, and theft insurance.
The comprehensive insurance covers the owner’s vehicle, liability, uninsured drivers, vehicle recovery, driving other cars, legal costs, motor injury, and comes with an individual no-claim discount.
Hastings
Hastings provides flexible car insurance with a variety of benefits, including the ability for policyholders to add optional features such as enhanced personal accident cover, breakdown, motor legal expenses, and key protection.
Churchill
This Insurance company was one of the first direct motor insurance providers in the UK, having been founded in 1989. Its car insurance includes a 24-hour emergency helpline, five years of guaranteed repairs if the policyholder uses approved repairers, a new vandalism guarantee, and a courtesy car as standard.
Commercial Auto Insurance coverage
Commercial auto insurance policies typically include the following types of coverage:
- Liability coverage
- Physical damage coverage
- Comprehensive coverage
- Named perils or specified perils coverage
- Uninsured motorist’s coverage
Liability coverage for Commercial Auto Insurance coverage
If you or your workers cause property damage, bodily harm, or death, this coverage will pay for the damages up to, and possibly including, the costs of a legal defence.
The term liability insurance pertains to an insurance product that protects an insured party from claims resulting from injuries and property damage to others.
In general, liability insurance policies do not cover intentional damage or contractual liabilities. Liability insurance policies, unlike other types of insurance, pay third parties rather than policyholders.
Physical damage coverage
This type of coverage will pay for the repair or replacement of your commercial vehicle if it is physically damaged.
Comprehensive coverage
Comprehensive insurance is a type of car insurance that covers damage to your vehicle caused by factors other than a collision.
Named perils or specified perils coverage
Only covers damage caused by the perils specified in the policy.
Uninsured motorist’s coverage
If you are hit by an uninsured driver, underinsured motorist coverage will help pay your expenses.
How Does Commercial Auto Insurance Work?
Vehicle insurers provide commercial auto insurance to both employers and employees of commercial transportation companies. While some commercial auto insurance policies only cover liability, others may include collision, medical treatment costs, and Personal Injury Protection (PIP) coverage.
Before paying for an insurance quote, business owners and commercial drivers should research their insurance options. They analyze the elements in each coverage option with the assistance of an insurance company representative and select the options that best meet their needs.
The following are what you should look out for when buying this type of insurance:
- Monthly premium: A monthly premium is the amount of money paid by insured drivers to keep their insurance policy in force.
- Coverages: List of expenses that an insurance company may cover if an insured vehicle is involved in an accident. Auto repair bills and medical expenses are two examples of coverages.
- Policy Limit: A policy limit is the maximum amount of money that an insurance company will pay to protect a policyholder.
Commercial Auto Insurance Cost In the Uk
The more comprehensive the coverage you select, the more expensive it is likely to be. Furthermore, if you use your car for work, it could be costly. Because commercial policies can cover a wide range of risks, determining an average cost is difficult.
In some cases, tailored business car insurance is less expensive than standard car insurance. According to gocompare.com, fully comprehensive business car insurance costs about £92 less than standard fully comprehensive insurance – £431.35 per year versus £544.02.
When it comes to calculating the cost, factors such as the vehicle you drive, your driving history, and the number of miles you drive all contribute more to the cost of your insurance than whether or not you drive your car for work.
FAQs about Commercial Auto Insurance
What are commercial auto insurance coverage?
Commercial auto insurance helps to cover the costs of accidents involving your company’s vehicles. Medical bills, property damage, and legal fees are all covered if you are sued.
Some policies provide coverage for vehicle theft, vandalism, and other types of damage. You can customize your policy by adding different types of coverage, such as collision or comprehensive coverage.
Does my small business need to have commercial auto insurance?
You need commercial auto insurance to protect your company from financial loss. If one of your commercial vehicles is involved in an accident, the victims may hold your company liable or even sue the company.
Who can be driver of a car that’s insured under a Next Commercial Auto policy?
Anyone who drives your vehicle on a regular basis should be listed on your Next commercial auto policy. Other drivers can use the vehicle on occasion and still be covered by your policy, but they may not be covered if it is discovered that they regularly use the vehicle for your business.
