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Business Use Car Insurance: What is Covered?

23/11/2020

As the Covid-19 pandemic continues to disrupt day-to-day activities around the country, many people are reconsidering their career and business options. Becoming an instructor is one of the viable career options available on the market.

When planning to start a driving school business, you need to 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 protect yourself, co-workers, employees, customers, and other road users.

It is important to decide whether you will run the school alone or hire other driving instructors. If you opt to bring additional people for support, consider the relevant employment laws. 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:

Business 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 dictated by UK laws, by protecting you against costs arising from property damage and third-party injuries.

On the other hand, third-party, fire, and theft provides 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 visits to clients. The policy can also protect your spouse when driving the vehicle for specific business purposes. Class two lets you add another driver in addition to the perks listed under class one. Meanwhile, class three protects you on long-distance business trips even without prearranged appointments.

Driving lessons after UK Covid-19 lockdown

The Driving and Vehicle Standards Agency recently announced that driving lessons will resume on December 2 across the country after the second suspension on November 5.

Theory tests, driving lessons, and practical tests were all affected by the second national lockdown restrictions. Fortunately, you can now take advantage of the resumption to kickstart your driver training business.

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:

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.

By taking out an insurance policy, you will find 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 offers well-formulated policies encompassing all three classes. Your driving school business benefits from the courtesy car and accident cover, which come standard on auto insurance policies.

Adrian Flux

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

Policyholder leverage essential features include automatic cover for banned drivers, no hidden excesses, and up to 60 percent no claims bonus.

Additional resources

The internet is overflowing with useful information that can help you make the right decision. For this reason, leverage information is available on multiple sources, such as Grade Six Supplies. You can find a comprehensive checklist outlining key factors to consider 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 informed choices. The driving school sector is a viable career and business path following the problems triggered by the coronavirus induced lockdowns.

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