What constitutes business use?

[kusanku]

I suspect this is a rather straightforward question to those in the know. Looking for insurance quotes on-line, I am not entirely sure whether to tick the option for "Social, domestic, pleasure and commuting" or to include business? If you have more than one base, does this automatically mean you are using the car for business? I would have thought this still constitutes commuting, but on go.compare the options given are social, social and commuting to a single site, or business.

However, when I got a phone quote from Direct Line, I asked about the type of use. They seemed to consider that if you drive to work, even if there is more than one site, it constitutes commuting.

Any idea what the general rule is?

 

[developer]

You may (will) get differing views on here but I'd suggest you ensure that you have a correct understanding between you and the company you go with.

They don't need much of an excuse to walk away, come claim time.

 

[kusanku]

I agree with you about that, which is why I want to make certain I don't inadvertently give them that opportunity. The difference it makes to the premium is about £70, which seems like an unreasonable amount extra to pay for simply having more than one work base.

 

[whitenemesis]

AFAIK 'business use' means travelling under instruction from your employer and/or carrying products of commercial value.

 

[developer]

Funny thing, insurance, and rules aren't uniformally applied.

On my quotes I get no premium difference between SDP and SDP with business use.

 

[kusanku]

AFAIK 'business use' means travelling under instruction from your employer and/or carrying products of commercial value.

I am mainly based at one hospital. However, I also do some teaching as part of my job, which is either at one of the other hospitals in Bristol or at the university. If I drive to these sites, does this constitute business use?

 

[MOCAŠ]

AFAIK 'business use' means travelling under instruction from your employer and/or carrying products of commercial value.

Or carrying people in connection with your business. For instance, if you're likely to be giving lifts to colleagues between the two sites, that could be enough to constitute business use.

As developer215 says, it's all down to the view taken by your insurer, so your best bet is to disclose how you will be using your car and let them advise you as to what cover you need. May also be worth getting that specified on the schedule, in case of any issues later.

 

[Rory]

I am mainly based at one hospital. However, I also do some teaching as part of my job, which is either at one of the other hospitals in Bristol or at the university. If I drive to these sites, does this constitute business use?

I would say it does, and it definitely does if you drive from one site to another during your normal working day. Do you get paid (or could you claim) mileage when going to other sites - most organisations won't pay it until they've seen proof you have business insurance?

I'm surprised the extra cost is £70. A few insurers include it as standard anyway and it's generally a minor difference. My daughter got a refund when she added it to her policy with Admiral mid-year!

 

[whitenemesis]

I am mainly based at one hospital. However, I also do some teaching as part of my job, which is either at one of the other hospitals in Bristol or at the university. If I drive to these sites, does this constitute business use?

I did something similar and declared it as business use.

 

[oldcro]

Such a question should be asked of your insurance company, opinions while given in good faith on an internet forum are worthless if they contradict your insurance company rules.

 

[Dryce]

However, when I got a phone quote from Direct Line, I asked about the type of use. They seemed to consider that if you drive to work, even if there is more than one site, it constitutes commuting.

Any idea what the general rule is?

We've had various definitions with insurers over the years. The comparison sites attempt to to streamline things which may confuse things further.

Direct line have this information.

Ask Direct Line - Are my spouse and I covered for business use?

In the past I've had a policies which have allowed travelling between locations as long as I wasn't making deliveries or carrying 'business equipment'.

So you really need to check with each insurer to make sure of how they define it.

 

[kusanku]

I think you are all correct in suggesting I talk with the insurer directly. Just wondered how other people interpret these situations? Interestingly, the quote I got was from Admiral, via "go compare". I did it initially as SDP & commuting, then tried it again adding the minimum possible business mileage (up to 1000 miles per year) and it came up £70 more expensive. Direct line said that travelling between different work sites was included.

 

[markjay]

I have a similar issue, and therefore chose an insurer who does not penalise for business use.

I was with Tesco, and now with Aviva, with both insurers the inclusion of Business use did not significantly increase the premium.

I thought it would be a safer bet to just have business use cover than worry about the semantics. My wife's cars also has full business cover, on the odd chance that I'll use it for work.

One thing that did come out while I was looking at this, is that most consider commuting as travel to a fixed place of work.

 

[markjay]

Found this:

'Social domestic, pleasure to include commuting. This is the same as the above, but includes going to one place of work only. So if your employer asks you to go to another place of work - this can be other premises owned by your employer, the bank possibly, or to a training course - you are then using your car uninsured. The ramifications of this need not be rehearsed here.'

This is from:
Business Car Manager - Classes of use for car insurance - including business use

 

[markjay]

In fact, there are a quite few sites mentioning this, here's another:

'Social, Domestic & Pleasure Including Commuting - As you might have guessed this is identical to the above use but includes using your car for driving to a single, fixed place of work. This is the type of cover that suits most people and you should choose this even if you plan to only drive to work occasionally.'

This is from:
UK Car Insurance Cover

 

[markjay]

So the short answer is that on the face of it Commuting cover will not be sufficient in your circumstances, however if you do find an insurer (e.g. Direct Line) that is willing to accept your type of travel as Commuting, then follow MOCAŠ' advice of full disclosure on your part and written confirmation from the insurer - or just look for an insurer that does not significantly increase the premium cost for full business use.

 

[Palfrem]

How can driving to a different work place present any greater risk than visiting every National Trust property in the UK ??

 

[Dieselman]

My thoughts are that the O/p isn't driving for the business, but has two possible places of work, both of which he commutes to, to then work.

Business use means using the car as part of your job, e.g. visiting customers.

I'm surprised the prospective insurer makes any charge.

 

[christopherwk]

How can driving to a different work place present any greater risk than visiting every National Trust property in the UK ??

Possibly because you'd be driving with other commuters, during peak hours when there's more traffic on the road, rather than visiting National Trust properties during the summer/weekends, when it's more quiet.

However, not everyone works 9-5, and travel during the morning and evening peaks, so this is where they look at your occupation, an office worker will be more likely to commute during those peak hours, rather than someone who does shift work such as a nurse or bus driver.

 

[Dryce]

How can driving to a different work place present any greater risk than visiting every National Trust property in the UK ??

The insurers try to create simple definitions. This doesn't work on our terms but given the problems they have it maybe works on their terms rather better than we can see.