Company car Vs business use insurance

[SAdam123]

Hi

Not sure where this should go so please move if in wrong forum.

I was offered a company car recently but as I have a perfectly good car I opted to take a cash equivalent (worked out to be quite decent money).

Now the lady in my office who's in charge of the company cars etc is saying I need to get business use on my current vehicle. I wouldn't class her an expert on these things. I have commuting - is business use really required? I wouldn't have got fuel money for driving to work in the company car and would rarely get the chance to claim fuel expenses as I'm not often out the office. The only time I'll claim fuel money (0.45p per mile) is to go to the odd sales meeting.

Do I have to get business use insurance for going to these meetings (perhaps twice a year)?! I would have thought having a social, domestic, pleasure and commuting policy would have it covered.

Any help greatly received.

[the_stoat]

Yes you need it.

[Pickled Piper]

Technically yes. However, many policies already include class 1 business use or it can be added for very little extra.

pp

[marshalla]

Driving to a sales meeting at somewhere other than your normal place of work is not social, domestic, pleasure or commuting (which requires it to be your normal place of work). Therefore, it is business use.

[blank]

Yes you need it.

Probably won't cost more than £20. Or some companies, like Direct Line, include it anyway.

Company has a duty of care to ensure the car you provide for business use is legal.

[Mave]

Yep. I need to demonstrate to my employer that my insurance covers business use before they'll pay my travel expenses.

[SAdam123]

Fair enough, cheers guys.

[New POD]

Let us know how much it costs. If you have a sensible car, and are a low risk it usually is free

[SAdam123]

Not the most sensible by any means, and it was about £5 extra until June when policy expires. They tried to put £17.50 fee on it but blagged it so they didn't.

[New POD]

SAdam123 said:

Not the most sensible by any means, and it was about £5 extra until June when policy expires. They tried to put £17.50 fee on it but blagged it so they didn't.

Thank you for updating that.

I'm a Ltd company contractor, so every 6 to 9 months I change where I work, and I got into a bit of a discussion with my insurance company, when I first started doing it about whether I needed it or not, as my previous commute when I had a permanent Job was 300 miles a week, and my new commute was 300 miles a week, but in 2 110 mile journeys and a few bits and bobs in between. The crux seemed to hinge on the fact that I can now claim 45p a mile against my income tax, so therefore it must be business use. Okay then, so I need it. How much extra ? £0.00 No point in the discussion we'd just had.