Professional travel car insurance: how does it work?

Professional travel car insurance: how does it work?

Commercial, nurse, real estate agent, home help… many jobs involve the use of a car for business trips. In other professions, the car is only used for home-to-work journeys;

which are not considered professional journeys. The distinction is important for insurers and for your company, the risk is not the same!

So, what car insurance do you need for a business trip? For a home-to-work trip only? Is an extended warranty required? Service vehicle or company vehicle?

Coover presents the specificities of car insurance for all daily trips.

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Business travel and home-to-work travel: definitions

To fully understand what insurance is necessary for your car, it is important to define these two concepts: business travel and home-to-work travel.

A business trip is a journey made for the purposes of professional activity.

In other words, if you use your personal car or motorbike during your work time, for journeys made on behalf of your employer, this is professional use of the vehicle.

On the other hand, if you only use your vehicle to get to your place of work and no longer have use of it during your day, it is a home-to-work trip.

There is also the concept of “private use” of the vehicle.

In this situation, you are only driving for personal reasons, outside of any professional activity, such as to go shopping, go on a walk or on a trip, visit your family, etc.

What car insurance do I need for business use?

Your insurance does not systematically cover you during your business trips. Indeed, you must check with your insurer that the guarantees apply to the professional use of the vehicle.

If your contract does not mention the coverage of these professional trips, you must then inform your insurer of this use and obtain their agreement to make these trips with your personal vehicle.

Thus, an amendment to the contract is made and the premium is reassessed. Your insurance will now cover your business trips.

Similarly, some classic car insurance formulas do not cover home-to-work journeys. You should consult your contract or contact an advisor to find out what is going on for you.

In principle, when subscribing, you must specify the use of the car or motorbike for your home-to-work journeys. These are subject to a specific guarantee.

Insurers do not consider them as professional journeys but in the event of an accident, the claim will be designated as a work accident.

Attention ! If business trips are made with a company car, it is up to the employer to provide car insurance . A “mission insurance contract” is possible.

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When should you take out an extended car warranty?

Your car insurance contract does not authorize the driving of the vehicle for business trips ? In this case, you can ask your insurer for an extension of guarantee called “use of the vehicle for professional use”.

This extension of cover will lead to an increase in your premium , the insurer adapting the price to the potential risk. However, you can try to negotiate with your employer to cover this additional cost.

Your insurer is not obliged to accept the extended warranty you request. In case of refusal, we advise you to avoid using your personal car for these professional journeys.

So, you will have to inform your employer, who will be able to take out a mission insurance contract for his employees. This coverage covers damage only caused during business trips.

Company vehicle and home-to-work journey: what are the rules?

A company vehicle is a vehicle made available to the employee by the company for business trips only. In principle, it is not possible for the employee to use it in the evening and on weekends.

He therefore uses it when he arrives at his place of work, to go from the company’s headquarters to a construction site or to a client for example, and returns it in the evening before returning home.

It is generally not possible to travel with a service vehicle outside working hours, even to go to the office for example.

However, some companies show flexibility on this point, and allow the employee to use the company vehicle for their home-to-work journeys.

This is a tacit authorization from the employer, which cannot be blamed on the employee thereafter. However, the company can withdraw the service vehicle at any time.

The company car can be used by the employee outside of business trips, without the employer’s agreement.

You can therefore travel with your company vehicle for your home-to-work journeys and even to go on weekends or do your personal shopping.

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FAQs

What is considered a commuting accident?
A commuting accident involves an injury and can occur in 2 situations:

•  On the road between your residence and your place of work,
• On the journey between your place of work and the restaurant where you go during the meal break.

What is the difference between a company car and a service car?

Both are cars made available to an employee by his employer for the exercise of his mission.

The company vehicle can be used for both professional and private trips, while the service car can only be used for business trips.