Is Personal Vehicle Insurance Adequate To Protect Your Small Business?


Having finished the weekly shopping, you’re backing out of your car park in your business car, which is only covered by personal car insurance. In a moment of distraction, you continue to back out, only to hear the crunch as your car connects with a parked Holden. A minute later you’re calling the insurance company, however, they have only bad news. Your personal vehicle insurance won’t cover the accident to your business car.

There is a common perception that personal car insurance will cover vehicles that are primarily used for business. After all, both business vehicle insurance and personal vehicle insurance share some similar benefits – legal liability cover and options for a rental car to name two. But, with some rare exceptions, using personal cover for a business vehicle is fraught with risk.

To avoid getting a shock when you attempt to claim a business vehicle under a personal insurance policy, it’s useful to understand the difference between the two. Here are a couple of key reasons as to why business vehicle insurance, and not just personal insurance, is needed when it comes to protecting the cars you use in your business.


As highlighted at the beginning of the article, most insurance companies consider business vehicle insurance a different type of policy to that used to cover private vehicles.

Personal policies are designed with private citizens, their purposes and their driving in mind. Business vehicle insurance policies are intended to protect vehicles used for commercial purposes, such as transporting goods or visiting clients at different sites. As business vehicles often get used more frequently, sometimes in heavier traffic and on unfamiliar roads, a business vehicle insurance policy reflects this additional risk.


Another difference between personal and business vehicle insurance is the coverage. There are often additional levels of coverage and options available in a business insurance policy that aren’t available in personal insurance. Business insurance can also protect yourself and your business from legal claims resulting in any accidents while driving the business car. Such an occurrence could be disastrous for a driver if the incorrect insurance was used for a vehicle while on business-related travel.

Business vehicle insurance is specifically intended for cars that are used for commercial purposes. Without this type of insurance, any and every vehicle you use in conducting your business is at risk. Is it worth it?

If you need vehicle insurance that protects your car and your business, speak to a PSC Insurance Broker today.


Conditions apply for each policy and the information expected from you for a policy to trigger. Coverage may differ based on specific clauses in individual policies. Please ask your broker to explain the additional benefits and exclusions pertaining to your policy.

The information provided is general advice only and does not take account of your personal circumstances or needs. Please refer to our financial services guide which contains details of our services and how we are remunerated.