What is Commercial Travelling Car Insurance?

If you live in the UK and own any type of vehicle, you’re legally required to have car insurance. 

What’s also important is having the right type of car insurance – not only will the wrong type void your insurance but you could also end up with a criminal record.

So, what is commercial travelling car insurance and how does it differ from other types of car insurance? 

Let’s find out.

What is Commercial Travelling Car Insurance?

This type of car insurance protects business owners and individuals who use their vehicles for business purposes and whose job depends on the vehicle itself, like taxi drivers or driving instructors. 

Commercial vehicle insurance usually features extra perks and provides a higher level of protection and is thus more expensive than other types of car insurance, which typically costs around £500.

Business Car Insurance vs Commercial Car Insurance

The main difference between business car insurance and commercial travelling insurance is that the latter is used for a specific type of work. 

If you use your car for work, other than driving to a fixed workplace, then you’ll need business car insurance. However, if your vehicle is an integral part of your job, you’re required to get commercial vehicle insurance.

Keep in mind that different insurers might have a different commercial travelling definition and might use the two terms interchangeably, so it’s best to check with them what exactly the policy covers before you purchase insurance from them.

Typically, commercial vehicle insurance includes minibus, taxi, truck, haulage, and fleet insurance.

What Does ‘Class of use’ Mean With Car Insurance?

Class of use in car insurance refers to what you intend to use the vehicle for and how often you’ll use it. Insurers partly rely on the class of use to determine how much you’ll need to pay for insurance.

For instance, commuters who use their car to drive to work daily are statistically more likely to be involved in an accident, which translates to high premiums. According to road accidents stats and facts, there were close to 15,000 car accidents with people travelling to work. On the other hand, those who work from home don’t necessarily drive their vehicles every day and thus, have more significant insurance premiums.

What Are the Different Classes of Use?

There are four main car insurance classes.

SPD (Social, Domestic, and Pleasure)

 This class is for people who don’t use their cars for business purposes but rather for shopping, visiting friends and family, driving to school, or driving holidays. It doesn’t cover driving to work or commuting.

SDP+C (Social+ commuting) 

This class covers everything under SDP, plus commuting to work, including in situations where you change means of transportation, such as driving your car to the train station and taking the train to get to work. This type of insurance also covers driving others to work.

Business Classes

Business classes cover work-related travel and include driving to more than your fixed office space (which is covered by SDP+C).

There are a total of three subclasses for this class, including: 

Class 1

This class covers driving to several places of work, such as on-site visits and external meetings. For example, a care worker who sometimes travels to patients’ homes would be covered by Class 1 insurance.

Class 2

Class 2 allows policyholders to add a second driver that works for the same business. This type of insurance is suitable for small businesses that don’t have more than two vehicles.

Class 3

Class 3 insurance includes everything that class 2 covers, plus unlimited long-distance driving and door-to-door selling, with no set destinations.

Commercial Travel Insurance

The insurance for commercial travel is similar to a class 3 business insurance, but is generally more flexible and comes with extra options. For example, some commercial policies allow policyholders to insure items they carry in the vehicle.

Note: Regardless of the type of insurance you pick (including commercial vehicle travel), you can choose from three cover levels: comprehensive, fire and theft, and third-party only.

What if I Have the Wrong Class of Use Insurance?

Having the wrong class of use is illegal (ex. driving to work without commuting insurance) and might result in criminal charges. What’s more, if you pick car insurance that doesn’t match your needs, you risk voiding your insurance altogether.

Therefore, if your class of use changes for any reason, you should contact your insurer to change your cover.

Bottom Line

Commercial car insurance is a must for businesses and individuals who use their vehicles for business-related purposes. It specifically covers those whose job depends on the car, like delivery drivers, and often comes with a few extra perks, since these people have little choice but to spend a lot of their time on the road.