Anyone else caught by the 'business use' insurance trap?

[Vacumatic]

RizzoTheRat said:

I used to have a policy that excluded damage caused by aircraft. I discovered this the year the car was spending most weekends parked within about 10 meters of Farnborough's main runway

I was driving near Glasgow airport once when a block of ice fell from the sky, this was about 10 feet in length and 6 feet round, it landed about 10 feet away. By its colour I assumed that it came from an airplane bog. Maybe that would have triggered the exclusion for damage caused by aircraft on your policy had it hit the car.

Glad I wasnt on a bike.

[JonRB]

xRIEx said:

What Bill said is correct. If you are contracted to "commute" to different locations on e.g. different days of the week, whatever time the journey takes place, Business Use cover is required. Most insurers will define commuting as to a "single permanent location".

Yup, exactly this. I had this exact argument with an insurer when I started contracting back in 1998 - I said that I was going to the same client every day and only had one client (this was just before IR35 came in so was ok to say), and that SDP+commuting should be sufficient. However, it became quite clear that "commuting" is only for permies who go to only one place. Back then Class 1 Business Use cost extra but these days I find that it costs no more. In fact, with some insurers it is even the default for Comprehensive cover instead of the more usual SDP+commuting.

Anyway, back on topic - what the OP needs is Class 1 Business Use.

[saaby93]

JonRB said:

Yup, exactly this. I had this exact argument with an insurer when I started contracting back in 1998 - I said that I was going to the same client every day and only had one client (this was just before IR35 came in so was ok to say), and that SDP+commuting should be sufficient. However, it became quite clear that "commuting" is only for permies who go to only one place. Back then Class 1 Business Use cost extra but these days I find that it costs no more. In fact, with some insurers it is even the default for Comprehensive cover instead of the more usual SDP+commuting.

Anyway, back on topic - what the OP needs is Class 1 Business Use.

Without arguing with your last sentnce
What youve said there is slightly different
As a contractor your base is home and from time to time or every time you go to work at the place of a client
The OP isnt contractor. He has one employer with a number of bases

[JonRB]

saaby93 said:

ithout arguing with your last sentnce
What youve said there is slightly different
As a contractor your base is home and from time to time or every time you go to work at the place of a client
The OP isnt contractor. He has one employer with a number of bases

Hmmm. Yes, you're right. That's a fair point. In that case, I'm not sure what the letter of the law would state.

However, I'd suggest that since Class 1 costs so little extra these days that it would be safer to specify that than to be arguing the toss over the wording in the event of an accident whilst insured for SDP+C.

[Bill]

I'm not a contractor, have one employer but many work places.

[Vacumatic]

If your job demands that you drive your own vehicle for the purposes of work you will need to pay for business car insurance rather than a standard policy that only covers social, domestic and commuting use. Business protection will cover a whole range of uses, such as travelling between different work locations, visiting customers or using your own vehicle to give lifts to other employees.

Although you will be paying higher premiums for business insurance, don’t be tempted to run the risk of sticking with domestic-only cover. Your insurer is unlikely to pay out any claims if it discovers the accident happened while you were on a work trip.

[JonRB]

Bill said:

I'm not a contractor, have one employer but many work places.

Yes, I realise that now. But I don't think this actually makes any difference.

It's exactly as Vacumatic has just posted. And, as I said in my previous post, for the negligible extra cost (if any) it makes very little sense not to go for Class 1 Business use.

Edit: Just to clarify something that Vacumatic said which may confuse, "business insurance" is not some completely separate extra thing you purchase. It's as simple a thing as when you insure your car, you choose "Class 1 Business" as the level of cover you want rather than "Social, Domestic and Pleasure" or "Social, Domestic, Pleasure and commuting to and from a single permanent place of work". Much like other choices like "Third Party Only", "Third Party, Fire and Theft" or "Fully Comprehensive". They are just levels of cover on ordinary motor insurance.

Apologies if I am stating the bleedin' obvious here, but I thought it may clear up any confusion.

Edited by JonRB on Wednesday 5th August 18:06

[Bill]

[saaby93]

Vacumatic said:

If your job demands that you drive your own vehicle for the purposes of work you will need to pay for business car insurance rather than a standard policy that only covers social, domestic and commuting use. Business protection will cover a whole range of uses, such as travelling between different work locations, visiting customers or using your own vehicle to give lifts to other employees.

Although you will be paying higher premiums for business insurance, don’t be tempted to run the risk of sticking with domestic-only cover. Your insurer is unlikely to pay out any claims if it discovers the accident happened while you were on a work trip.

Without wishing to be pedantic an without denying to save argument it's worth having the cover

The op isnt talking about using his vehicle for the purposes of work
or for travelling between different work locations
or visiting customers
i.e none of the categories you mentioned
Which is why he's raised the question

[Vacumatic]

saaby93 said:

Without wishing to be pedantic an without denying to save argument it's worth having the cover

The op isnt talking about using his vehicle for the purposes of work
or for travelling between different work locations
or visiting customers
i.e none of the categories you mentioned
Which is why he's raised the question

I have just re-read the OP, and he was talking about driving to different work locations and that was why he is required to buy Business insurance. the relevance is the use of the word Permanent.

[Vroom101]

Congratulations OP on the qualification - well done! I would imagine it's a very hard but very rewarding job.

Whilst we're on the topic of insurance, I have SDP & commuting, however once in a blue moon (maybe once every two or three years), my employer will send me on a day's training course. I am not paid for travelling time, but can claim mileage (which I can never be arsed to do). Should I have business use just for that?

Edited by Vroom101 on Wednesday 5th August 19:12

[Vacumatic]

Vroom101 said:

Congratulations OP on the qualification - well done! I would imagine it's a very hard but very rewarding job.

Whilst we're on the topic of insurance, I have SDP & commuting, however once in a blue moon (maybe once every two or three years), my employer will send me on a training course. I am not paid for travelling time, but can claim mileage. Should I have business use just for that?

Probably, I guess the employer doesnt have a car you can use instead. If you have an accident whilst travelling on business then you would be uninsured and insurers are likely to do some digging if its a big claim.

Speak to your insurers. An alternative may be a hire car with the cost of the hire and fuel paid for by the employer.

[Vroom101]

Vacumatic said:

Vroom101 said:

Congratulations OP on the qualification - well done! I would imagine it's a very hard but very rewarding job.

Whilst we're on the topic of insurance, I have SDP & commuting, however once in a blue moon (maybe once every two or three years), my employer will send me on a training course. I am not paid for travelling time, but can claim mileage. Should I have business use just for that?

Probably, I guess the employer doesnt have a car you can use instead. If you have an accident whilst travelling on business then you would be uninsured and insurers are likely to do some digging if its a big claim.

Speak to your insurers. An alternative may be a hire car with the cost of the hire and fuel paid for by the employer.

My employer certainly wouldn't do that. They just expect you to use your own car. The latest course was only a few months ago, so I won't need a refresher for another couple of years or so (confined spaces training). Think what I'll do come renewal time is just up the level of cover to business use.

I'm a governor at my lad's school and have to go to various meetings and training courses for that. When I brought it up with my insurer they said its classed as voluntary work so I was covered under SDP.

[9mm]

Can colleagues/HR not offer any advice? I'd have thought there'd be some insurance deals to be had for NHS staff as well, albeit possibly through a Union.

[Terminator X]

Surely if stopped by the fuzz during business hours with no business related insurance just lie and say you're on your way to the shops etc to get lunch, cakes etc.

I have business cover before you release the hounds of hell on me.

TX.

[xRIEx]

Vroom101 said:

Whilst we're on the topic of insurance, I have SDP & commuting, however once in a blue moon (maybe once every two or three years), my employer will send me on a day's training course. I am not paid for travelling time, but can claim mileage (which I can never be arsed to do). Should I have business use just for that?

Very much down to the insurer; some will happily allow for that sort of eventuality in their SDP&C cover, others would insist on business use. As above, speak to them to be sure.

[Sheepshanks]

meehaja said:

I'm a Paramedic and my insurance does not include business use. I do not use my car for the purpose of business or during business time. I commute to one "place" of work (the ambulance service). No one has ever asked where my base station is, nor will they. This is how i interpret it.

I know where you're coming from - my Dad was a fireman and I'm sure it would never have occurred to him to have business cover for going from station to station. But strictly speaking these days, I reckon he (and you) should have it.

As for no one asking, I'm surprised that you, as a paramedic, would say that. The Police will ask a lot of searching questions in the event of a serious accident.

[Leptons]

Put simply, it's another way of screwing more money from us.

Alas, Someone who works in insurance will be along in a moment to me how I'm wrong and try and justify it in a round-about sort of way.

[Sheepshanks]

V8mate said:

LV= made no extra charge for switching from travel to a single place of work, to travelling in connection with employer's business.

They didn't even charge for adding business use for my kids, as named drivers on the wife's car.

[Bill]

Leptons said:

Put simply, it's another way of screwing more money from us.

Alas, Someone who works in insurance will be along in a moment to me how I'm wrong and try and justify it in a round-about sort of way.

Those thieving bds! Charging me an extra £0.00!