Business Use Car Insurance After Covid: What is Covered?

24/02/2023

When starting a driving school business, you must consider various factors, such as insurance, taxes, and potential competitors. This type of business requires good communication skills and patience.

Having the right cover for your driving school business is crucial. The policy you take out protects your livelihood and helps ensure the success of your business. You defend yourself, co-workers, employees, customers, and other road users.

Deciding whether you will run the school alone or hire other driving instructors is essential. Consider the relevant employment laws if you want additional people for support. You will need to take out employee liability insurance.

Establishing your business as a sole trader allows you to work independently without worrying about employee benefits and other factors. You can expand the business and hire workers at a later stage.

Additional considerations include:

• Getting qualified as a driving instructor
• Deciding whether to acquire a vehicle with dual-controls or not
• Researching your target market
• Legal and tax requirements
• Selecting a list of services to offer (pre-17 driver tuition, remedial training, advanced driving courses, post-test further training, or training in special driving skills)

Businesses use car insurance

With this type of auto insurance, you use a vehicle registered in your name to handle work-related driving. Taking out a policy allows you to use a vehicle in your name to run the driving school business. Insurers offer various classes of business use car insurance policies from which to choose.

The ideal class of insurance depends on the type of work-related activities involved. Insurers allow you to include employees or co-workers to ensure adequate coverage.

Coverage

When it comes to coverage, your policy protects you from unexpected events that occur while conducting day-to-day and work-related driving. It also extends protection to commuting. Third-party-only policies provide basic cover, as UK laws dictate, by protecting you against costs arising from property damage and third-party injuries.

On the other hand, third-party, fire, and theft provide an additional layer of coverage by protecting any damage to your vehicle.

With a class one policy, your insurance covers trips to multiple worksites, including client visits. The policy can also protect your spouse when driving the vehicle for specific business purposes. Class two lets you add another driver to the perks listed under class one. Meanwhile, class three protects you on long-distance business trips even without prearranged appointments.

The best car insurance providers

A wide selection of insurers offers business use car insurance and driving instructor insurance, which cover driving lessons. Some of the leading auto insurance providers in the UK include:

• AA Insure
• Aviva
• Insure Daily
• Collingwood Insurance
• RAC
• Sky Insurance
• Temp Cover
• One Call Insurance
• Adrian Flux
• Gallagher UK
• Day Insure

Gallagher UK

Gallagher offers comprehensive auto insurance products for both approved and potential driving instructors. Its policies incorporate personal accident cover, negligent driving tuition, banned drivers resitting tests, and off-road tuition. Taking out an insurance policy makes it easier to start the driving school business from a solid foundation. Thus, keep your venture running even after an accident.

AA Insure

AA Insure is a leading auto insurance provider in the UK that offers motor legal protection and breakdown cover as optional extras to maximise protection. The insurer provides well-formulated policies encompassing all three classes. Your driving school business will also benefit from the courtesy car and accident cover, which comes standard on auto insurance policies.

Adrian Flux

This insurance provider offers tailored policies to your driving school's specific coverage needs and partners with leading companies, such as RSA, Aviva, and Trinity Lane.

Policyholders leverage essential features, including automatic cover for banned drivers, no hidden excesses, and up to 60% no-claims bonus.

Additional resources

The internet is overflowing with helpful information to help you make the right decision. For this reason, leverage information is available from multiple sources, such as Grade Six Supplies. You can find a comprehensive checklist outlining key factors when planning to become an approved driving instructor (ADI).

Some online platforms provide access to video content that can help you plan more effectively. In the end, you are sure to make an informed choice.