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

[Ray Luxury-Yacht]

I've just successfully completed three years of a University / frontline experience training course, and am now a qualified Paramedic.

Happy with that - and I start work full time next month.

However - car insurance.....

When I started my course, I was actually amazed that when I changed my employment status from my last job, to my new status as 'student - medical' on the Meerkats website, my premium actually went down, which I wasn't expecting!

However, rather annoyingly, my NHS contract advised me that, as I might be occasionally working from 'other' Ambulance Stations, different from my 'base station' (but all in the same county) that I would now need to add 'business use' to my private car insurance, because it would be in conflict to most insurance companies' 'driving to and from a permanent place of work' clause.

My simple mind doesn't really understand the distinction - after all, I am driving to and from the same job as such - and the only difference would be driving to one of maybe three different stations, all a fairly similar distance from my house. Driving to work is driving to work, isn't it???

I can understand maybe, I dunno, builders driving all over the gaff for jobs at loads of different sites, and self-employed peeps going all over the country to see loads of different customers? But for me, this seems to be a bit disingenuous...

Anyway, 'only' another 50 quid, so not the end of the world. At least it means I can also deliver pizzas on my days off I guess

Anyone else caught out with something similar? I'm sure it wasn't like this in 'the good old days', right?!

[anonymous-user]

I took a role as a contractor thru an umbrella company. I notice that to claim my mileage I needed business insurance. I then went on the comparison websites, put all the details in and found one offering business mileage. I cancelled my esure insurance and took up the new policy all legit.

Thru a misunderstanding, the new insurance decided to cancel my insurance due to a an admin error.

I then went and had a look on esure website again randomly, and see they cover personal and commuting and business mileage as well, so went back for 100 quid cheaper than the comparisons ( even thou they guarantee best price!!)

Edited by The Spruce goose on Wednesday 5th August 02:41

[LaurasOtherHalf]

Nothing to add other than congrats on getting qualified R-L-Y

[Davie]

My policies state "commuting to and from a single place of work" so I guess if you're being asked to man various sites, it would contravene this. Same applies to her ladyship, she started doing supply and was advised she would need business cover. Sadly it's this sort of thing that 90% of us would miss or take for granted then potentially be left with invalid cover should the worst happen.

[All that jazz]

You need to move on to the next insurer if they're trying to charge you extra for business use. I initially got a quote from A-Plan for SDP + commuting and then realised I actually needed business use as well. How much extra will that be? No charge! For me they were the cheapest by quite a margin too.

[Ray Luxury-Yacht]

LaurasOtherHalf said:

Nothing to add other than congrats on getting qualified R-L-Y

Cheers dude! Risking a thread diversion, it's been amazing, flipping hard work but ultimately probably the single most amazing thing I have worked for in this life. I am now looking forward (terrifyingly) to being employed as a frontline Paramedic actually out on the road for real! Ulp! I just hope that I can do my best and make a difference to some people's lives when I can...

[itcaptainslow]

Congrats from me too on the qualification-recently qualified myself in a dream job (not the same field as you though-I couldn't deal with fixing people, so massive kudos for that!) and the feeling is unbelievable. Well done

I'd view the extra £50 as money well spent for piece of mind

[talksthetorque]

Congrats on the new job Op.
Commuting to and from a place of work is the phrase used by insurers.
So more than one= business use. Your employers are correct and were very nice in telling you this.
I'm sure it was a joke about the pizza delivery, but even your new insurance will not cover you for this. You'll find that you need cover for 'travelling for hire or reward' or some such phrasing for that.

[Warmfuzzies]

Congrats Ray.

One point though, if you aren't travelling between sites, is it really required? That used to be part of the stipulation, also if you were taking company property around from place to place


K

[Vacumatic]

This is a complicated topic and each insurer will have its own rules.

Years ago there were three categories.

1. Social Domestic and pleasure
2. SDP plus business use which meant travelling on your business or your employers business
3. 1 + 2 and Commercial Travelling

Then some insurers started SDP plus commuting to and from work meaning your regular place of employment.

Other insurers started minor changes and all this wasnt helped by the quote engines who didnt look at too much detail as to what was meant by the different insurers.

Also the onus is on you to check that the cover is correct for what you need.

For example I work for a large contractor who has some work in oil and gas and nuclear sites. Some private car insurers might cover business use but would exclude the use of cars on any nuclear site, including employees or visitor car parks, Sellafield for example has tourist visitors, some insurers will not insure your car whilst at Sellafield.

Really important to check the policy, if you are not really interested enough to do so then just check the Schedule and the Exclusions, and do this before you buy.

[moorx]

I work for the NHS too, and I know they are very strict on this - in order to be eligible to claim travel expenses, I have to (annually) present my driving licence and certificate of insurance to my manager, to prove that I have business cover.

[truck71]

When I added business use to my Porsche the premium fell- it was apparently at less risk being driven up and down the country than being sat outside a London flat..

[Hangcheck]

Ray Luxury-Yacht said:

I've just successfully completed three years of a University / frontline experience training course, and am now a qualified Paramedic.

Congrats! If you've had to do a mid-term adjustment with your current insurer with a change of job title and class of use then that probably explains the £50. I need business use as I visit client sites in my own car and I've yet for it to cost any more from any insurance company I've used.

Shop around at renewal time if yours are.

[wildcat45]

A lot of insurers don't charge, but I agree it is a funny rule.

My wife is a teacher. A very short journey to work for her but because maybe once or twice a year she may have to visit another school or go on a day long course, she has business cover.

And may I add my congratulations on your qualification

[ianrb]

You just need class 1 business use. When I added this to my last car the premium went down by £5, although in every previous case it stayed just the same.

[Dog Star]

moorx said:

I work for the NHS too, and I know they are very strict on this - in order to be eligible to claim travel expenses, I have to (annually) present my driving licence and certificate of insurance to my manager, to prove that I have business cover.

I used to work for the DWP and this was the same for them.

As an aside when I was an IT contractor I had one recruitment firm I was working for insist I had insurance which they, of course, could provide. I knew (as I'd worked for them several times (and I'm now permie with them)) that the end client had no such requirement. It was just the recruiter trying to mulct and extra couple of hundred quid from the contractor.

I simply knocked up a fake insurance certificate and showed that the recruiter. Job done.

[saaby93]

Congrats too
Surely this is straightforward.
If youre claiming mileage it's business use
If youre just commuting to different places of work you cant claim mileage and not business

[Bill]

saaby93 said:

Congrats too
Surely this is straightforward.
If youre claiming mileage it's business use
If youre just commuting to different places of work you cant claim mileage and not business

Huh? Do you mean claiming from work, or from the tax man?

Either way, the OP (congratulations BTW) needs class one business use which shouldn't cost much at all (I've never been charged for it, I suspect it's mostly admin charge).

[saaby93]

Bill said:

saaby93 said:

Congrats too
Surely this is straightforward.
If youre claiming mileage it's business use
If youre just commuting to different places of work you cant claim mileage and not business

Huh? Do you mean claiming from work, or from the tax man?

Either way, the OP (congratulations BTW) needs class one business use which shouldn't cost much at all (I've never been charged for it, I suspect it's mostly admin charge).

My confusion
Wasnt the original intention class 1 business use for attending customer sites but not carry goods for sale i.e. consulting
Class 2 includes selling
So commuting to different sites wasnt a business use

[meehaja]

Don't forget to add your advanced driving qualifications!

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. My wife work insisted she had business cover but we challenged it through the union, since the car was not being used for work purposes... yet to get an answer on this as she changed employer!