One would think that if you use your car for personal use then clearly it falls under personal car insurance and if you use your car for business then it falls into the business car insurance category. Unfortunately things are never really that simple. More often than not this is a very grey area and the decision on which type to go for often depends on exactly how you most use your vehicle. Let’s have a look at some basic differences between personal car insurance and business car insurance.
Personal car insurance can vary quite a bit from one insurance company to another, so it is worth finding out exactly what each insurance company’s personal car insurance cover actually will cover. Some insurance companies have a personal car insurance cover plan that will actually cover certain business applications. If you use your personal vehicle to visit clients and you are self-employed then this may be covered in personal car insurance but personal car insurance will not, in most cases, cover the transport of goods in a personal vehicle.
Business car insurance is a lot more specific and certain types of businesses can only make use of business car insurance. Personal car insurance will not cover anyone else such as your personal assistant or another employee driving your car, to be covered by your personal insurance policy.
For this you would need to have a business car insurance policy in place. Liability also plays a bigger role in business. If you are transporting valuable items for a client in your personal vehicle, you need to know that your personal liability will cover any potential loss or damage and in many cases a personal car insurance policy’s value will be less than the potential liability and so will not be able to cover it.
It is also possible to get a combined car insurance plan. This combines benefits from personal car insurance coverage as well as benefits form business car insurance coverage in one convenient package. This is because more and more people are using one vehicle for both purposes.