Business Car Insurance

Compare quotes for business car insurance online and buy your policy today.

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, updated on February 15th, 2024       

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Car Insurance Banner - Businesswoman looking at her phone while standing outside her car.

When it comes to insuring your business car, it's important to ensure you have the right level of cover to protect it and your business. Business car insurance is specifically designed to provide coverage for vehicles that are primarily used for business purposes. This type of insurance can provide protection for a range of potential risks which arise from using the car for business.

Kick your business car insurance application into gear with an online quote. By comparing online, you can consider offers from a range of leading insurers in one place to help you find the coverage that best meets your needs and budget. 

What is business car insurance and how does it work?

Business car insurance is a type of policy which can cover cars used for business purposes. It differs from personal car insurance in that it covers vehicles which are owned and used by a business or are owned by an individual but used primarily or in part for business purposes. Personal car insurance on its own won’t generally offer coverage for business use.

While it has “business” in its name, the reality is that this type of insurance, in many cases, is an extension of a personal use policy. This means that this type of cover is generally designed for those who are using their car both for personal and business use.

The cost of your business car insurance will vary depending on factors such as the nature of the business, the number of drivers covered, the vehicle being insured and the level of coverage required, among other factors.

It's important for business owners to carefully consider the type of coverage they need and to shop around to find a policy that offers the right level of coverage at a competitive price. 

What does business car insurance cover?

The areas of coverage offered for business car insurance are similar to those under a standard car insurance policy. First and foremost, the same types of insurance apply, with comprehensive, third party fire and theft (TPFT), third party property damage (TPPD) and compulsory third party (CTP) insurance all on offer under business vehicle insurance. However, there are several additional areas which are specific to business cover.

Below are the key areas which can be covered under a comprehensive business car insurance policy:

  • Damage to your vehicle due to accident or collision
  • Damage to your vehicle due to fire or theft
  • Damage to your vehicle due to weather (such as hail or flood)
  • Damage to another person's vehicle or property
  • Damage to, or loss of, tools of trade inside your vehicle (which are subject to coverage limits)
  • Damage to, or loss of, signage or advertising on your vehicle (also subject to coverage limits)
  • Accommodation or travel costs in the event the vehicle is unable to be driven
  • Vehicle replacement if it's stolen or deemed a write-off

How is business car insurance different from commercial car insurance?

As mentioned, business car insurance is typically designed to cover vehicles which are used for both personal and business purposes but aren’t part of a fleet. On the other hand, commercial car insurance is more intended for companies which use specialised vehicles, such as heavy trucks, food vans, and delivery vehicles exclusively for business purposes. There are also policies offered designed for fleets of vehicles, which aren’t available with business car insurance.

Commercial car insurance policies may offer additional features which are tailored to the needs of businesses that use a fleet of vehicles, such as coverage for goods in transit and rental cars. Businesses which use a fleet of vehicles may also be required to obtain additional licenses and permits. However, you may also need other types of business insurance, such as public liability, to help cover your bases as a business.

Types of car insurance you can choose from

The factors impacting the cost of your business car insurance

Common questions about business car insurance

Can I get business car insurance if I’m a rideshare driver?

Rideshare drivers may be able to take out business car insurance, but not all insurers will offer coverage for those in this line of work. Additionally, they may need additional coverage to protect against risks specific to their industry, such as coverage for passengers or for accidents which occur while the driver is waiting for a ride request.

Are my business car insurance premiums tax-deductible?

In most cases, the business portion of your car insurance premiums is tax-deductible, but it's always best to check with a tax professional to ensure that you're eligible. If you plan to claim part of your expenses on your tax return, it’s important to be clear about what usage is business and what’s personal.

What types of vehicle can I cover under business car insurance?

Business car insurance typically covers vehicles which can otherwise be used for everyday purposes, namely cars. This is in contrast to commercial vehicle insurance, which can also cover trucks, vans and trailers.

Do I need to buy insurance if I’m leasing a vehicle for my business?

If you're leasing a vehicle for your business, you'll typically need to purchase insurance to meet the requirements of your lease agreement. Business car insurance can provide this coverage, as well as protect you and your business against other risks. However, whether your insurance is included as part of your lease payments or available for purchase separately will depend on the company you’re leasing from.

Am I required to take out business car insurance?

As with standard vehicle insurance, CTP cover is a requirement for all registered vehicles, but the three other types of cover aren’t a mandatory part of operating your vehicle. As such, it isn’t illegal to not have cover. However, having car insurance can bring business owners greater peace of mind that they can be covered for a variety of eventualities which may occur on the road and potentially impact their business.

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