Car insurance meaning in business

What is business car insurance? Basically, business car insurance covers you if you use your own car for more than just commuting to the same office each day. You generally need to take out business car insurance if you use your car during the workday (for business purposes) for anything other than your daily commute.

Commercial car insurance covers people whose job depends on the vehicle itself – such as taxi or delivery drivers – rather than how they get to work places. However, commercial car insurance is not the same as insurance for a company car. If you drive a company car the insurance should be taken out by the company that owns or leases the vehicle.

In order to decide whether or not you need business use insurance, it is important to understand what car insurance carriers consider business use. In general, business use is the operation of your vehicle for a business purpose or the operation of a vehicle that is owned by a business.