Insurance Car
Insurance is considered a grudge purchase, not only because you’re paying damages for an event that might not happen, but also because insurers have a reputation of doing anything they can to prevent paying out a claim. For this reason it’s important to be up front with your insurer when taking out insurance.
When calculating your insurance quote and premiums, the insurer measures your risk profile and you pay premiums based on that. If you lie while they’re calculating your risk profile to get a cheaper premium, they can use non-disclosure as a reason not to pay out your claims.
Even though a private insurance car is cheaper than business insurance car, it doesn’t pay to lie to your insurer. What you use your car for determines how it should be insured.
Business insurance car
If you use your car for business or work-related purposes, you must insure it for business use. This means that if the vehicle is used during work hours it’s business use. A business insurance car has higher premiums than a private insurance car because as the risk of accident is higher.
What you do for work also influences your premiums. Sales reps who spend lots of time in their vehicles pay more for insurance as they’re on the road more and have a higher chances of accident. If you work from home, however, you still need to insure your car for business use, but it will be cheaper than a sales rep.
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Private insurance car
A private insurance car is used for non-work use. This includes driving to and from work but not use of your vehicle for work during working hours. If you have an accident while using your car for work, your insurer can reject the claim as your private insurance car is not covered for such. The premiums on a private insurance car are cheaper as there is less risk of accident.
Even business insurance cars don’t have to pay high premiums. By comparing quotes online, you can find an insurance quote that suits your budget.
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