Personal car insurance that offers cover for business use is intended to cover your vehicle for private use, with occasional and limited business use. It’s more likely to suit your needs if you use the same vehicle for both personal and business purposes. But you should bear in mind that if you choose this type of insurance, your cover may be restricted to certain situations.
The cover will vary depending on the insurer, but typically (but not invariably) covers are limited to:
- Using your personal vehicle for social, domestic, and leisure purposes, with occasional business use.
- Occasional business use that isn’t an essential part of how you earn income.
- Passenger vehicles, utes, sedans, and wagons.
It usually excludes or can apply restrictions, including but not limited, to:
- Carrying passengers for hire or reward, such as taxi or rideshare services like Uber or DiDi.
- Using your car to deliver goods.
- Renting your car to others for payment.
- Damage to tools used in connection with your business while they’re stored or carried in your vehicle.
If you need cover for multiple vehicles, it’s a good idea to check this with your insurer. This is because the number of vehicles that can be covered under one personal insurance policy can vary depending on the insurer.