With ever-growing motoring costs, we all look for the best deal possible when the annual insurance renewal comes around. And for many motorists, that means finding the best price for their social, domestic & pleasure (SD&P) cover.
But if you use your car to get to work and have not notified your insurer of this, you could be driving with insufficient cover.
It’s one thing being a courier and using your car for deliveries across the country – that’s generally accepted as business use. But what about commuting to your normal place of work or office? Or going to see clients? Perhaps visiting different work sites or locations?
Risk experts have warned that not all drivers using their own cars for work will have the correct insurance in place. Work-related journeys all need additional business cover, which should be discussed with an insurer before any policy is put into place.
Using a car for a regular commute to a place of work can constitute a ‘business use’ which is not covered on a regular SD&P policy. Even driving a friend or relative to a rail station for them to catch a train to work every day can be classed as a ‘work-related journey’ which should have adequate insurance cover.
Recent research by risk management experts Safe2Drive, shows that significant numbers of UK motorists mistakenly believe that their standard car insurance policy covers them for business use.
Businesses have a duty of care to ensure the safety and well-being of their employees beyond the confines of the workplace. This includes support for ‘grey fleet’ vehicles, which are privately owned vehicles used for business driving. Duty of care measures include verifying that workers have the appropriate insurance coverage for business use, adequate driver training, and help with regular maintenance of the vehicle.
As a company does not own the grey fleet vehicles, the business must manage more challenging problems as the responsibility lies with the employer to ensure the safety of their drivers and the vehicles they use.
Failure to have the correct insurance could lead to serious consequences for both employer and employee, including legal non-compliance, claims refused, fines and penalties, increased costs and in some cases a criminal record.
What are the different types of car insurance?
Social, Domestic & Pleasure – Normal use of a private vehicle, including visiting friends and family, driving to the shops or supermarket and using the vehicle for days out and holiday trips.
Social with commuting – As above but adding in a clause which covers you for a regular commute to a permanent place of work. This can include going to a rail station and leaving the car in its car park every day.
Business use – Cover that is added in for any type of work-related driving. There are different levels of cover, from using a car to get another office or a meeting, driving to collect equipment or a colleague, up to using the vehicle regularly for site visits or multiple client appointments.
Commercial use – Full-on business use, such as using a car as a taxi, a driving school car or a delivery vehicle. This is a clearer-cut category for most motorists but, in any case, the insurer would be able to advise which level you need.
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