Ever get into someone’s car and wonder exactly where you should park your kiester (‘backside’ for the more polite among us)? You know the type of car we’re talking about… Filled to the brim with takeaway coffee cups, food wrappers, water bottles, crumbs, files, receipts and so much more. We’re not saying that everyone whose job requires spending hours on the road is a slob, but these individuals tend to have a slightly different approach to using their cars than those who clock in and stay at their desks from 9-5.
You’d be surprised at how many people use their cars to earn their daily bread now. This isn’t just an interesting titbit, it’s a fact that’s had a few consequences along the way. For instance, look at how it’s influenced the buying habits of people who are using their cars to earn a living. Real estate agents and medical reps are more likely to prioritise excellent fuel consumption and a good service plan over horse power and colour. And then marketers would use this info to target these people with ads about cars that suit their needs.
Marketers and car manufacturers aren’t the only 1s influenced by the rise in travelling for income. It’s also influenced car insurance and it’s actually important that you know about this. You see, the way you use your car plays a huge role in the premium that you pay and how your car’s covered. As you wheel and seal deals around town, you spend more time on the road. Logically speaking, you’re more likely to have an accident than your desk-bound buddies, which means that your insurance should offer more protection.
There are a couple of types of car use for you to choose from so that you can make sure that your car’s properly insured and that you’re paying an accurate monthly price.
Most insurance companies offer this as ‘private’ car use and by private they don’t mean that you’re a spy, doing secretive things for king and country. If you choose private use, then you’re saying that you use your car for social purposes, like going to the shops, visiting friends, as well as driving between your home and work.
What trips people up is the ‘going to work’ part. Let’s make it crispy clear. If you’re using your car to get to and from your regular place of work, it still counts as private use.
Insurance companies offer ‘full business’ and ‘occasional business’. Let’s tackle the big 1 first. Full business use covers the private use of your car as well as any business activities. So, if you’re a consultant who drives around to see your clients and then also uses the car to fetch the kids, buy groceries, and visit friends, then you’d go for full business.
A little bit of both
But what if you don’t always use your car for business? What if you only use it a few times a month, like heading out to buy stock or making weekly deliveries? That’s not the same as going out every day and so it’s not really worth ticking the box for full business use. The trick is knowing which of these types applies to you.
You might be wondering when you should choose full business use? According to King Price, a good rule of thumb to go by is if you’re making between 10-12 business trips a month, then you should go for full business use. This ensures that you and your car are covered on the road to success and helps you avoid any issues if you ever need to claim.
Thankfully, there are insurance companies who care about making sure that you have the right cover for your needs. If you’re interested in getting a quote for the right type of car insurance that makes sure that you’re completely covered while you’re bringing home the bacon, then click here for a commitment-free comprehensive car insurance quote. A quote that also offers decreasing premiums so that your monthly premium goes down every single month in line with the depreciating value of your car… Meaning that you pay less, every month.
Now, that’s good business!