THE INTERNET is playing an increasing part in our daily lives, particularly when shopping around for services.
With more car insurance being arranged via the internet, the risk of not obtaining the correct class of use is greater.
What the classes of insurance?
Social Domestic and Pleasure. This is pure private use; no business use at all, not even to go to work.
Social domestic, pleasure to include commuting. This is the same as the above, but includes going to one place of work only. So if your employer asks you to go to another place of work – this can be other premises owned by your employer, the bank possibly, or to a training course – you are then using your car uninsured. The ramifications of this need not be rehearsed here.
Class one business use. This includes all of the above plus, you personally (some insurers may include spouse here as well, not partner but spouse) may use the car for YOUR business. Not an employer’s business, but yours. Depending on the insurer, this may exclude carriage of goods and samples and may also exclude business calls made without a prearranged appointments – in other words what used to be called commercial travelling.
Class two business use. This is all of the above and is the main use for the company car market as this includes business use of the employer, such as going to see clients, going on a course, going to the bank or post office but again can exclude commercial travelling.
Class three business use. This embraces all of the above and includes commercial travelling (visiting clients, agents and the like without a pre-arranged appointment).
All insurance companies have their own particular slant on all of the above, so the chance for confusion is great.
Read the policy wording carefully
If in doubt read the policy wording on your own business car insurance documents. If you remain unsure that you have the right class of use, it’s best to check with your own insurers, or your insurance broker if you use one – they will also be able help with other questions you may have regarding your business and company car insurance.
Then there is the issue of whether you provide a company or your employees use their own vehicles. Whatever the case, you still have a duty if care to ensure they are correctly insured