The difference between personal and business vehicle use

The purpose for which a vehicle is used gives insurance providers an indication of how much time the vehicle will spend on the road, and in what traffic conditions it will be driven. A vehicle that is driven in rush hour traffic is usually at greater risk of being involved in an accident compared to a vehicle that is regularly driven during off-peak periods.

Personal use

Personal use is when you use your vehicle for social, domestic or recreational purposes. It also applies if you use your vehicle for trips between your residential address and permanent working address.

Occasional business use

Occasional business use is when you occasionally use your vehicle for business-related trips and mostly use your vehicle for social, domestic or recreational purposes. Most insurance providers state that occasional business use will apply if you use your vehicle for business-related purposes not more than ten times a month. Keep in mind that this is only an estimate and that you should discuss your driving habits with your insurance provider to ensure that you have the right Car Insurance in place.

Full business use

Business vehicle use is when the vehicle that you’re planning to insure is mainly used for business-related purposes. You will also be able to use the vehicle for social, domestic or recreational purposes, but the main use of the vehicle will be for business-related trips. There is usually no limit to the number of business trips that you may use the vehicle for in a month. Keep in mind that a vehicle that is used for business-related purposes will spend more time on the road which means that Car Insurance premiums could be higher than the premiums charged for vehicles that are only used for personal trips.

Always be honest when providing information to your insurance provider as inaccuracies could cause major difficulty if you need to put in a claim.