I might use my private car to drive to clients 1-2 times/month in my new job at a non profit organisation.They have cars for staff, but I might be required to use mine occasionally. I prefer mine as I am used to driving it. Should I change from personal use to business use in my car insurance? Thank you.
Change from Personal Use to Business Use in Car Insurance
helloall on 30/06/2021 - 21:14
Comments
Business use is very expensive. However, if you insure with NRMA they allow for business use as a standard.
Check your car insurance policy's PDS, using private car for business use is not a problem unless it is for "carrying passengers for hire, fare or reward".
^this, or if you are transporting goods for your employer. Also, best to confirm with your insurance provider. They will point you to the specific clause in their PDS if you ask.
In the renewal/initial quote, there's usually a question whether the vehicle will be used to make commercial deliveries. Answering it as "Yes" would probably increase the premium. Answering it as "No" and in the event of an accident while making commercial deliveries, the insurer could reject the claim due to false declaration made.
No. Read your PDS and you'll find they allow "minor use for work purposes". If in doubt, ask the insurer.
Re: personal car use. If pool cars or a go-get or hire car are available I'd recommend you use them.
Where I work, if you use your personal vehicle they pay the c/km BUT if any form of accident happens then the excess is at your expense. If the accident is minor (eg: damaging a tyre on a pothole) and the cost is less than the insurance excess then it's at your expense.
I've been burnt once. Now I just get a pool car or hire a car and book the hours doing this on my time sheet.
Just remember that while they might be a charity, you are not.
The c/km is supposed to reimburse for fuel, wear & tear, rego and also insurance.
There's risks in using a pool car too. In case of an accident, some companies charge an excess amount to the employee driving it. Be sure to check your company's policy on pool cars.
I wouldn't bother … just wait until the next renewal.
I doubt your premium would change even if you did change it.