Self-EmployedCar Insurance

What is self-employed car insurance?

Self-employed car insurance is a type of policy designed for people who need business cover when they drive.

Unlike standard insurance, this specialist policy could cover you when using your car for work purposes. It's often a requirement if your business involves driving clients or equipment or making deliveries. At a minimum, self-employed insurance protects you against third-party damage, but you can also choose the exact level of cover you need.

Do self-employed drivers need special car insurance?

Yes, if the vehicle will be used for business purposes. A regular domestic policy only covers personal use, but special car insurance could offer additional protection.

Legally speaking, you must have the right type of cover for any business use. If you rely on a standard policy while driving for work, your insurance could be invalid and leave you personally responsible for any damage or claims.

Is self-employed car insurance more expensive?

Self-employed insurance can be more expensive than standard policies, but the price depends on several factors. How often you use your car for business, your driving history, the type of vehicle, and where it's parked all influence the premium. The cost reflects the level of risk insurers see, and it's made to give you adequate financial protection.

How much is self-employed driver car insurance?

The cost depends on your circumstances. For example, the median price for a comprehensive van insurance policy paid annually is £466* for self-employed drivers. For other types of cars or occupations, the cost may be significantly lower.

Does being self-employed affect car insurance?

Yes, if you use your vehicle for business purposes. Policies for self-employed drivers account for the extra miles, client visits, or work-related trips you make, which influence your premium.

Is car insurance tax-deductible for self-employed people?

If you're a self-employed driver, some of your car insurance costs may be tax-deductible when the vehicle is used for business. This includes trips to meet a client or customer, as long as the mileage is for work.

Can I claim car insurance as a business expense?

If you drive for work, you may be able to make a claim for part of your premium as a business expense. However, not all types of insurance for the self-employed qualify, so double-check what you can actually claim.

What optional extras do I need?

Consider optional extras to make sure you have the protection you need:

Motor legal protection

Covers legal costs if you need to seek compensation after an accident.

Breakdown cover

Provides support if your car fails, including towing or repairs.

Personal accident cover

Offers compensation if you suffer an injury in a car accident.

Excess protection

Reduces the amount you pay out of pocket following a claim.

Courtesy car cover

Provides a replacement car while yours is being repaired.

Business equipment cover

Protects any equipment you carry for work; covers damage or theft while on the road.

These options aren't essential for everyone, but depending on your personal situation, they could be useful.

What details do I need to provide to get a car insurance quote?

Before you register, it helps to have a few details ready so you can get the most accurate price. Here’s what you’ll be asked:

• Age
• Occupation (for example, electrician, studio worker, photographer, or hairdresser)
• Home address and where the car is parked overnight
• Car usage
• Estimated annual mileage
• Driving licence number
• Car registration number
• Purchase date of the car
• Vehicle modifications
• Your No Claims Discount
• Accident or claims history (last 5 years)
• Convictions or penalties (last 5 years)
• Additional drivers

FAQ

Can self-employed people claim on their car insurance?

Yes, self-employed drivers can make a claim on their car insurance if they have an accident, or their vehicle is damaged or stolen. It's important to let your insurer know if you use your car for business purposes because this affects your policy and the level of cover. If you don't, your claim could be rejected, or your policy may not pay out in full.

How much is self-employed insurance per month?

The cost depends on your personal circumstances and how you use your car for business. Your driving history, the type of cover you choose, the kind of car you drive, and how often you use it for work all influence the price.

Rather than a fixed monthly amount, your premium reflects the level of risk the insurer sees and the protection you need for both personal and business use.

Is self-employed car insurance different from company car insurance?

Yes. A self-employed driver needs an insurance policy that covers both personal and business use of their own vehicle. In contrast, a company car is insured by the employer, with a policy that protects the business and the driver while using the vehicle.

Is car insurance cheaper for the self-employed?

It isn't automatically cheaper than a standard policy. The cost depends on how much you use your car for business and the type of cover you choose.

Insurers often see business use as a higher risk, which can increase premiums. However, if your work only involves occasional trips, the difference may be small. Other factors, like your driving history, the type of car you drive, and where it's parked, also affect the price.

Is self-employed business insurance relevant for me if I work from home?

Even if you work from home, it can still be useful. Even though your car may spend most of its time parked at your house, the insurance covers any business-related journeys and protects against damage that could happen on the road. It provides cover for both you and your work-related activities in case of an accident.

Can I get self-employed car insurance if I drive abroad for work?

Yes, but you need to check your policy carefully. Not all policies automatically provide cover outside the UK, so confirm that your insurance covers business trips overseas. Some insurers offer temporary or extended foreign cover as part of the policy.

How long does it take to get a self-employed car insurance quote?

It's usually quick and straightforward. When you visit a comparison site, just provide your details and receive quotes in just a few minutes. The process provides an accurate idea of your premiums and saves you from spending hours on paperwork.

Does my trade or profession affect my car insurance price?

Yes. If you're a professional in a higher-risk or driving-intensive role, insurers may charge more because your work increases the likelihood of accidents or claims. For example, a mobile worker (someone who travels to clients' homes or workplaces, like a plumber or IT technician) may have higher rates than someone who mainly drives for personal use.