Uses for month to month car insurance

Insurers require that motorists indicate the ways they will use the vehicle. Cover for private use is a different class than cover for business use, for example. The type of use affects the premiums motorists will pay. It also affects whether or not the cover applies. For example, if a motorist indicates only private use and gets into an accident whilst using the car for business, that accident will not be covered. It's important for motorists to be truthful and as accurate as possible.

Private Use

The class encompassing private or personal use is typically defined as use for 'social, domestic, and pleasure purposes.' It covers the motorist for private use only. There may be another class of use that adds commuting; this would allow the motorist to use the car for private use and to drive the car to and from work. This class usually explicitly excludes use for business, defining commuting as travelling to and from one or more permanent work locations. Couriers would not be covered.

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Business Use

There are a few types of business use classes. One might allow all drivers to use the car for private use and allow the policyholder to use it in connection with his or her business. It might be indicated for self-employed persons, but would exclude couriers. Another type of business use might allow all drivers to use the car for both private and business use, couriers excluded. Some insurers offer cover specifically for courier use, which should only be indicated if the policyholder's job is as a delivery driver or courier. The insurer may exclude fast food delivery drivers, however.

Use Abroad

Those planning to drive whilst abroad have some limited options. Since the basic UK cover is equivalent to the basic requirements in the EU, drivers may be covered whilst abroad. This is not always the case, however, so drivers must check. For example, insurers might cover drivers for travel, but exclude driving for business. It depends on the policy. Some offer equivalent cover in the UK and EU – drivers who have comprehensive in the UK will have comprehensive in the EU – whereas others offer third party only whilst driving in the EU. Breakdown cover may not be included. If travelling outside the EU, it's unlikely that cover will apply.

Use Exclusions

Policies contain exclusions – uses for which the car will never be covered. They depend upon the insurer, but may include a car's use in a race, at a trial, in a competition, for delivering newspapers, or at an airport, among many others. All will exclude using the car for hire or reward; private hire vehicles and taxis have different guidelines for cover. Motorists should read policy documents and know what's allowed and what's not.

Copyright 2010