Class of use describes whether a vehicle is used for social trips, commuting, business, deliveries or other work-related journeys.
Class of use tells an insurer how you expect to use your car or van. It is different from the level of cover, such as comprehensive or third party. UK drivers must have at least third party motor insurance, but the policy must also cover the journeys being made.
The names and limits of each class can vary between insurers. Your policy schedule, certificate and wording will show the use that is covered.
This usually covers personal trips, such as shopping, visiting family, leisure travel and the school run. It does not usually cover driving to or from work.
This usually adds travel to one regular place of work. Travel to a station may also be treated as commuting. Rules can differ, so check how your insurer defines a regular workplace.
Business use is normally needed for work journeys beyond an ordinary commute. Examples include visiting customers, attending meetings or travelling between work sites. The ABI’s motor insurance guidance says drivers using a car as part of their employment should make sure business use is covered.
Business classes are sometimes numbered, but their scope is not the same across all insurers. Do not rely on a class number alone. Check the activities, drivers and mileage covered.
A van may be insured for social use, commuting, carrying the policyholder’s own goods, or carrying goods for payment. Courier, food delivery, parcel delivery, taxi or passenger work may need specific hire-and-reward cover. Ordinary business use may not be enough.
Insurers use class of use to assess how often, where and why a vehicle is driven. This may affect the premium, excess, terms and whether an insurer can offer cover.
Take reasonable care to answer the insurer’s questions accurately so the declared class of use reflects how the vehicle will actually be used. The Consumer Insurance (Disclosure and Representations) Act 2012 sets out this duty for consumer insurance.
If the declared use does not match the actual use, the effect will depend on the policy, the questions asked and the full circumstances. If incorrect information amounts to a qualifying misrepresentation, the insurer’s response will also depend on what it would have done if it had received the correct information. This may affect the policy terms or a claim and, in some circumstances, may allow the insurer to avoid the policy. If a driver has no valid cover for a journey, GOV.UK explains the penalties for driving without insurance.
An insurer may ask about:
• the main reason for using the vehicle
• whether you commute and how many workplaces you visit
• your occupation and any business activities
• expected annual and business mileage
• whether you carry tools, stock, parcels or other people’s goods
• whether you receive payment for deliveries or passengers
• who will drive the vehicle
Answer each question based on how the vehicle will actually be used. Ask for help if a category is unclear.
Check the class of use on the quote and policy documents before cover starts. Contact the insurer or broker before making a change that affects how the vehicle will be used, the expected mileage or the business activities involved. Always check the cover before starting courier, delivery, passenger-carrying or other paid driving work.
Do not assume a work trip is covered because your employer pays mileage or has its own insurance. Cover for your own vehicle will depend on your policy.
We can discuss how you use your vehicle and look for a policy that matches the details you give us. This may include car insurance, van insurance or convicted driver insurance.
Some uses, such as courier or delivery work, may need a different type of cover or quote route. Availability and terms depend on the insurer and the full details.
