35% of workers have inadequate car insurance using personal car for business use

January 20, 2010

Comparison web site Gocompare.com has warned that 35 percent of workers are putting their lives at risk by driving without adequate car insurance as their employers encourage them to use their cars for work without informing them of the need for business use cover on their car insurance.

The warning was issued by Gocompare.com after its study has found that 72 percent of UK workers have used their own car for business use in the last year. Shockingly, 35 percent of the workers do not have business use cover on their car insurance.

What’s more alarming is the fact that only 38 percent of those surveyed said their employer has talked to them about the need for business use cover on their car insurance when using their own car on company business.

Lee Griffin, business development director of Gocompare.com said, “More flexible working habits and multi-location workplaces mean that many workers now use their own vehicles for informal or ad-hoc company business. However, companies shouldn’t assume that workers with private car insurance are covered for driving their vehicle while at work. Employers have a legal responsibility to ensure that, irrespective of its owner, vehicles used on company business are safe to use – this includes being fully insured for business usage.”

Griffin explained that extending your motor insurance cover to include business use can be relatively inexpensive, and some insurers do not even charge an additional fee for this cover. It makes sense to use a price comparison site to find the best car insurance policy that provides suitable business cover if your job requires you to use your car for business journeys.

“If workers use their own cars while on company business, no matter how infrequently, we would urge them to check their policy to make sure they are properly insured. And employers should talk to workers about the necessity of having the correct level of cover before they undertake any business journeys in a private car,” Griffin said.

A typical private car policy provides cover for motorists driving to work or the station car park. But the driver needs to extend his insurance to include business use if he or she drives to company sites other than the usual place of work. If the car is not insured for business mileage the insurer may refuse to pick-up the bill for any claims incurred while at work.©MoneyHighStreet.com

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