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Business drivers fail to tell their insurer

One in six fail to declare business miles to their insurer

  • 16% of drivers using their own car for business have not told their insurance company
  • The AA advising business drivers to check their documents to ensure they are covered
  • “Adding business use to your policy is a small task, but can make a big difference” says AA Insurance MD

19 September 2024

One in six (16%*) drivers who use their personal car for business trips have failed to inform their insurance provider, according to a poll by The AA

The survey of 1,855 drivers who use their personal car for work, also found that one in 15 (6%) could not remember if they had declared their visits to clients, off-site meetings and conferences.

While three quarters (75%) of drivers have advised their insurer of the business miles they carry out, 16% say that they have underestimated the distance they travel.

“Some drivers who use their own cars for regular off-site business trips are running the risk of not being covered should the worst happen.”
Gus Park, managing director of AA Insurance Services

The AA is advising business drivers to check their policies to ensure they are adequately covered when they use their own car for work**. While many standard policies will protect the main policyholder commuting to one regular place of work, those carrying out visits to multiple sites or clients should upgrade their policy to include business use.

Similarly, some companies provide schemes where they have an insurance policy that will cover the business miles travelled by employees, but they need to the be registered to the scheme and may be required to take online learning or have a driving assessment.

What is business insurance?

Business car insurance policies fall under the following classes:

  • Class 1 - This covers driving between multiple places of work or occasional travel to meet clients. Class 1 insurance could include a care worker who drives to visit patients, but wouldn't cover you for deliveries or door-to-door sales. It may also cover your spouse - but check the policy to be sure.
  • Class 2 - This offers the same as class 1 but includes an additional named driver, who'll usually work for the same business. As with Class 1, deliveries and door-to door-selling are not covered.
  • Class 3 - This is the most expensive class and covers unlimited long distance driving and door-to-door selling

Without the correct insurance cover, some drivers may find themselves unable to make a claim if they were using the vehicle for a business trip but had not informed their provider.

Gus Park, managing director of AA Insurance Services, said; “Some drivers who use their own cars for regular off-site business trips are running the risk of not being covered should the worst happen.

“Adding business use to your policy is a small task, but can make a big difference. If you regularly travel to see customers or attend conferences, it is really important to make sure your policy is fit for purpose.

“As well as checking your own policy, it’s also worth checking if your employer offers some form of business cover and if so, what you need to do to join the scheme.”

* Yonder received 1,855 responses from AA members to its online poll between the 8th to 16th July 2024 Yonder is a member of the British Polling Council and abides by its rules.

** Business car insurance | AA Insurance (theaa.com)