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Company Car Insurance

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Hi All,

I have never had to get involved with company cars on payrolls so I hope someone will be able to help with a technicality question.

I am happy with the process of BiK etc, but my question is around the car insurance.

There would only be one car in the company and one employee.

What is the process with the car insurance?

Does the company have to have it's own policy (if so can anyone recommend any companies or where to get quotes comparison)?

Or, can the company pay the employee's policy? Or can the company reimburse the employee for the cost of the insurance? (I'm not sure about these two options to be honest).

Any help is much appreciated, and apologies for what is probably such a simple question. I would prefer to get it right from the start.

Thank you.

Replies (16)

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RLI
By lionofludesch
02nd Aug 2020 15:01

Company owns car, company pays.

Employee owns car employee pays.

Man down pub owns car, mdp pays.

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Replying to lionofludesch:
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By enoryt010
02nd Aug 2020 15:19

Thank you.
I understand what you are saying and agree, but does 'Company owns car, company pays' cover employee being reimbursed or company paying employee insurance policy directly?

I am sorry that these are such basic questions but having never been involved with company cars, I want to be right.

Do you know of any companies that offer quotes to companies to insure the car because I don't seem able to find anything that looks credible/reliable.

Thanks again.

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By paulhammett
02nd Aug 2020 15:41

If the company owns the car, the insurance policy should be in the company's name and the company should pay the premium.

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Replying to paulhammett:
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By enoryt010
02nd Aug 2020 15:56

Thank you.
Do you know of any comparison type sites for getting quotes for insurance in the company's name?

It doesn't seem quite so easy to find as for personal car insurance.

Thanks again.

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Replying to enoryt010:
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By paulhammett
02nd Aug 2020 18:30

Google is usually your friend in matters like this.

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Replying to enoryt010:
Hallerud at Easter
By DJKL
03rd Aug 2020 09:45

It is not so easy to find and the premiums are likely higher than on an individual policy that permits business use, which somewhat begs the question is a company car a good idea or ought individual own and insure their own car and claim mileage?

Do the sums re the two and chat with a broker.

(For the record I hate cars run through any business as imho they often change owner/manager behaviour, especially if more than one owner)

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Replying to DJKL:
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By enoryt010
03rd Aug 2020 10:04

Really helpful, thank you!
It is because I am trying to do some accurate sums that getting the insurance is a big question. I realised it may be higher and that is why I thought it was important to get an idea of costs to accurately reflect the position.

Thank you again.

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Replying to enoryt010:
Hallerud at Easter
By DJKL
03rd Aug 2020 10:16

As a guide, when we did run a fleet, with open driving for anyone over 25, the average premium was circa double what I would have paid for a similar personal car insurance with social, domestic, commuting, it was back then (say 7 years ago) costing circa £900-£1,000 pa per vehicle on the fleet policy whereas I was paying personally re my own car maximum £400-£450 pa. (these days even less)

In my opinion the reason for using a broker is that with any car partially used for business purposes you need to be very sure business travel is actually covered, talking through with a decent broker who chats about what is carried in car/how the vehicle used may be the difference between finding out post an incident you are actually covered and finding out you are not.

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Replying to DJKL:
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By enoryt010
03rd Aug 2020 10:22

Brilliant, thank you, really helpful!
Do you know of any good, reputable brokers?

Thanks again.

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Replying to enoryt010:
Hallerud at Easter
By DJKL
03rd Aug 2020 10:39

We currently use Boyd Insurance's Edinburgh office (used to be Glenavon) but brokers are like solicitors/accountants, you want to find someone you can trust and are comfortable dealing with and this is likely different from person to person.

https://www.boydinsurance.co.uk/

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Replying to DJKL:
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By enoryt010
03rd Aug 2020 11:58

Thank you.
I do understand what you mean about being able to trust them being important and that being subjective as with accountants and solicitors.
I will have a look at Boyd though.

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By PK Financial Services
03rd Aug 2020 15:17

What about situation when car fully used by employee for private use (under BIK), as a company we do not really want to pay insurance.
Thanks

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Replying to PK Financial Services:
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By enoryt010
03rd Aug 2020 17:28

Interesting. So are you just providing the car as a benefit, even though the employee doesn't need it in their work?

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