As a self-employed person, do you drive your own car for work? Then you often need business car insurance. This is because this insurance applies when you make business trips. Ordinary car insurance usually does not cover this. In this article, you will find out what the difference is between private and business insurance. We also tell you about the types of cover you can choose, which extra options are useful, what tax benefits you have and what it costs on average.
Private vs. business car insurance
Private car insurance usually covers only private use of the car. Do you use the car for work, such as visiting clients, transporting things or commuting to clients? Then private insurance is not enough.
Business car insurance precisely covers business trips. Do you use the car a lot for work or is the car in your company's name? Then such a business insurance is even mandatory. Business policies are also often for multiple drivers. And that's fine if colleagues or partners travel with you, for example.
The premium of business insurance is usually slightly higher than that of private insurance. You do get more coverage and fewer regulations in return.
Forms of cover
Business car insurance comes in three types:
- Third-party liability (WA): This is the compulsory basic insurance. This insurance only covers damage you cause to others with your car. It does not cover damage to your own car. This insurance suits cars 10 years and older with a lower daily value.
- Limited Casco (WA+): In addition to third-party liability, this insurance also covers damage to your own car due to theft, fire, storm, burglary and windshield damage. Damage due to your own fault or vandalism is not covered here. This is a good choice for cars around 6 to 10 years old.
- Full-Casco (All-risk): This is the most comprehensive cover. Here, you are insured for damage to your own car, even if it is your own fault. And also for vandalism or one-sided accidents. This variant is best for new or expensive cars.
Which insurance is best depends on the age and value of your car and how much risk you want to take on yourself.
Additional covers
To make your business car insurance better, you can choose from several additional modules:
- Passenger insurance (SVI): Compensates injuries and damage to belongings of both driver and passengers, regardless of who is at fault. Very handy for extra personal protection.
- Legal aid traffic: This module provides legal help in traffic disputes, compensation claims or criminal cases. This module also helps with problems with other road users or insurers.
- Breakdown assistance: This provides roadside assistance (and sometimes even includes a replacement car). Ideal if you are often on the road for work.
These options are not mandatory and will increase your premium. However, they do give you more security and convenience.
Average cost
The premium for business car insurance depends on several things:
- The type of cover: third-party is the cheapest, All-risk the most expensive.
- Value, age and type of car: New and expensive cars are more expensive to insure.
- Mileage per year: The more you drive, the higher the premium.
- Region: In the city, the premium is often higher than outside the city.
- Claim-free years: The longer you drive claim-free, the more discount you get.
On average, you pay between €25 and €80 per month. Third-party insurance often starts around €20, while All-risk for a new car can easily cost €100 or more.
Conclusion
As a self-employed person, business car insurance is essential if you use your car for business. You will then be insured during business trips and have more freedom of use. Choose a cover that matches the value of your car and take a good look at which modules are useful. And really pay attention to the tax advantages when choosing business or private insurance. With good business insurance, you will not only drive safely, but also with peace of mind.
