Insurance Policies
What determines the premium of business car insurance?
Updated
Two entrepreneurs with the same car can pay very different premiums. That is because insurers look at several factors.
The car
The value, make and type of car determine a large part of the premium. A more expensive car costs more to repair or replace. Theft risk also plays a role.
Cover and excess
Comprehensive cover is more expensive than third-party or limited cover. A higher excess lowers the premium, but you pay more yourself in case of damage. Read more about the excess on car insurance.
Drivers and claims history
Insurers look at who drives, the drivers' ages and the number of no-claims years. If several people drive the car, report it. An incorrect statement can affect a payout.
Use and postcode
Annual mileage and where the car is usually parked also count. Compare different policies and cover via business car insurance.
Frequently asked questions
Is a higher excess sensible?
Only if you can absorb a claim yourself. It lowers the premium but increases your risk.
Does my place of residence count?
Yes, many insurers look at the postcode where the car is usually parked.
Is the premium adjusted every year?
It can be, for example due to claims, indexation or changes in your situation.
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