What is Class 1 Business Insurance?

As part of taking out a car insurance policy, you'll be asked how you use your car. This is important to insurance companies as they group specific policies into different classes depending on your driving habits. It ensures you're getting the right coverage, so making the right choice and ticking the correct box when searching for quotes is essential. 

These are the most common classes:

Social, domestic, and pleasure

The most basic and probably most common class. This class of insurance covers everyday personal use of your car, which usually looks like driving to the shops, visiting friends, day trips out, and other leisure-based driving habits. It's important to remember that this class does not cover commuting to work. So if you use your car to drive to work every day, you might need to consider the commuting class instead.

Commuting

If you drive to a single place of work each day, such as an office, or commute to the train station, for instance, this is the class you need. Commuting cover includes the social, domestic, and pleasure elements of driving and covers you in the event of a car accident while driving to work. However, suppose you travel to different sites, meet clients in different locations or regularly travel to multiple places as part of your job. In that case, you will need to look at business insurance.

Business

Business car insurance goes beyond standard levels of commuting to work and isn't considered to be an insurance "class." It's designed for those who use their vehicle for business purposes and as part of their job. This could include driving to different offices, attending to multiple clients as a carer, or carrying out work-related tasks. 

There are different levels of business cover (including Class 1, Class 2, and Class 3). If you're using your vehicle for more than just commuting, then you need to consider business car insurance to ensure you're getting the right level of cover.

Commercial

If your entire job revolves around driving, then commercial car insurance is what you need. This type of cover is usually used by delivery drivers, taxi drivers, couriers, or tradespeople who might carry tools or equipment to multiple locations. As this type of driving is considered "higher risk" due to the increased mileage and time spent on the road, commercial car insurance is often tailored to the needs of commercial drivers and is much broader than business car insurance.
 

Class 1 business insurance is a subcategory of business car insurance. It’s designed for people who occasionally drive to different locations as part of their job, as well as for everyday driving habits. It'll cover individuals for driving to different offices, going on training courses, or visiting clients, etc., but not for using their car for commercial purposes, such as deliveries or taxi driving.

So, when it comes to class 1 business car insurance, remember the following:

• Cover is for occasional work-related journeys.
• Class 1 business car insurance provides more flexibility than standard commuting cover (which only applies to a single place of work).
• It's not suitable for individuals who drive commercially, such a delivery drivers or taxi drivers.

Understanding if you need class 1 business car insurance is important. If you need to make a claim and you're found not to have the right level of cover, you may find that your policy is invalid, which means you'll have no protection, and your insurance provider may refuse to pay out.

Remember, you'll need class 1 business car insurance if you're using your car for more than just commuting to one place of work. It's a type of cover that has been designed for drivers who occasionally travel for work purposes.

What does it cover?

• Driving to different offices or sites
• Visiting clients or customers as part of your job role
• Attending training courses, meetings or conferences
• Additional drivers can be added to the policy, but this depends on the insurance provider

What doesn’t it cover?

• Delivery driving or courier work (this would be classed as commercial use)
• Taxi or ridesharing (again, this would require commercial car insurance)
• Jobs where the car is your main work tool
• Carrying goods or passengers for payment

Did you know that there are also different classes of business car insurance cover? The one you need will depend on how you use your vehicle. Class 1 is the most common; however, some drivers might benefit from taking out a Class 2 or even Class 3 policy to cover their needs. Take a look at this breakdown of how they all compare.

Did you know that there are other classes of business car insurance cover? The one you need will depend on how you use your vehicle. Class 1 is the most common, but some drivers may require a Class 2 or even Class 3 policy to cover their needs. 

Here is when you might need Class 2 or Class 3 business car insurance

Class 2

Class 2 business car insurance provides the same level of cover as Class 1. However, it also includes additional cover for any named drivers, such as your spouse or colleague who may be using the vehicle for business purposes. 

This type of car insurance cover is ideal for professionals who share a car for business journeys, such as may be the case with small family businesses. However, it doesn’t cover you for commercial use. So, if you’re business is primarily focused on driving, as is the case for taxi drivers or delivery companies, this is not the insurance class for you. You’ll need commercial driving insurance instead. 

Class 3

This class of business insurance again provides the same cover as Class 1. It also provides unlimited mileage and cover for more intensive driving, for example, if you’re someone who visits multiple clients or locations daily. This makes it ideal for sales reps, field workers, or jobs involving lots of travel.

However, it won’t cover you for carrying goods or passengers for payment. In those cases, you would need a commercial policy to ensure you’re completely covered. 

When buying business car insurance, the cost of your premiums will always vary and depend on your individual circumstances. However, there are several approaches that can help you to keep your business car insurance costs down, without compromising on your level of cover.

• Use a car insurance comparison service: Shopping around and comparing as many quotes as possible can help you find the best deal. Never take the first offer.
• Increase your voluntary excess: Increasing your voluntary excess means you may be able to lower your premiums slightly. However, always ensure that this figure is realistic and affordable should the worst happen.
• Limit your mileage: Lower mileage usually means lower risk for many insurers, so always be as accurate as possible, and drive fewer miles if you can.
• Improve your car security: Adding additional security devices such as steering wheel locks, immobilisers, or even tracking devices can help reduce your premiums.
• Pay annually rather than monthly: Monthly instalments will help to spread the cost; however, you'll also be paying interest and admin fees. Paying up front and in one go means you pay a cheaper price.