What classes of car insurance are available?

Class of use might sound like just another piece of car insurance jargon but it’s actually a crucial piece of information that your insurer needs to know. The term describes the way you use your car and ensures you get the most suitable policy for your needs. Get it wrong and it could mean your insurer refuses to pay out if you make a claim. To find out what each class of use covers, and how to get cheap car insurance, mustard.co.uk, sets out what you need to know so you don’t get caught out.  

What are the different car insurance classes of use?

For most of us using our cars for general day to day activities, there are two main classes of use to choose from:

Social, domestic and pleasure only (SDP)

This class of use is suitable only if you drive your car for personal or domestic reasons. It covers activities like the school run, visiting friends and family and running errands like your weekly food shop. Some insurers also call this ‘social only’.

Social, domestic, pleasure and commuting (SDP+C)

This includes all the activities in SDP but also covers you to drive to a single place of work (or to a station if you then take the train or tube). If you use your car to drive someone else to work, you may need this class of use even though you’re just giving them a lift. 

It’s also crucial to know that SDP+C is only suitable if you drive to a single, fixed place of work. If you visit a number of offices or sites, it’s unlikely to cover your needs and chances are, you’ll need business insurance instead. 

What does business car insurance cover?

Business car insurance covers all your SDP usage and also insures you for a number of work related activities. You can choose from one of three business classes of use so if you’re not sure what’s right for you, ask your insurer:

• Class 1 business use — covers driving to multiple locations, for instance, regional offices or different branches.
• Class 2 business use — this includes class 1 use but will also cover named drivers on your policy, but only if they use the car for the same work activities as you (like a work colleague). 
• Class 3 business use — this covers you to drive to as many different locations as you need.  So, if you’re constantly out and about for work, for example if you’re a surveyor or community nurse and make lots of visits on a daily basis, this is likely to be the most suitable option for you. 

What’s the difference between business and commercial car insurance?

This is where the lines between classes of use can become a little blurry.  For some insurers, business and commercial car insurance are the same and the terms are used interchangeably. But for others, commercial car insurance covers activities where your car is an essential part of your job rather than just a means of transport; for instance if you use your car to carry samples or if you’re a courier. 

If you need commercial car insurance, you’ll also be able to tailor your policy to cover the specific risks you face. So, if you carry carpet or flooring samples, you’ll usually be able to add cover for these items too. 

What happens if I have the wrong class of use?

Class of use helps insurers understand the risks you face while you’re on the road. This in turn will influence how much you pay for car cover. After all, commuting to work everyday or driving to lots of places, increases the chance of an accident compared to if you only used the car once a week to drive to the shops. 

Having the wrong class of use that doesn’t reflect the way you use your car ultimately means your policy isn’t valid and your insurer can refuse to pay out in a claim. 

Choose the right car insurance at the best price

Needless to say, when it comes to your car insurance, it’s vital to have the right class of use, but that shouldn’t mean having to pay over the odds for it. 

The good news is that at mustard.co.uk, they don’t believe in compromising between price and peace of mind. So, for a policy without compromise, Mustard has you covered.