A recent survey by The AA has found that 16% of drivers who use their personal vehicles for business purposes have not informed their insurance providers, potentially leaving them uncovered in the event of an accident. The AA is urging drivers to review their insurance policies to ensure they are properly covered for business use.
The survey, which included 1,855 drivers who use their personal cars for work-related travel, revealed concerning statistics. While the majority of respondents (75%) have informed their insurers about the business miles they drive, 16% admitted to underreporting the distances they travel for work. Additionally, 6% of drivers couldn’t recall if they had declared their business mileage at all, which includes travel for meetings, client visits, and conferences.
The Importance of Declaring Business Use
Most standard car insurance policies cover commuting to a single, regular place of work. However, for drivers who visit multiple locations, such as client sites or off-site meetings, an upgraded policy that includes business use is necessary to remain properly insured. Without this upgrade, drivers run the risk of having their claims denied if they are involved in an accident while on a business trip.
“Adding business use to your policy is a small task but can make a big difference,” said Gus Park, Managing Director of AA Insurance Services. “Drivers who regularly travel to meet clients or attend work-related events must ensure their policy is up to date and fit for purpose. Otherwise, they could face significant financial consequences.”
Employer-Sponsored Insurance Schemes
In some cases, companies offer insurance schemes that cover the business mileage traveled by their employees. However, these programs typically require employees to register and may also involve additional requirements, such as online driving courses or assessments. Employees should confirm whether their company provides such coverage and understand the steps needed to join these schemes.
Park added, “As well as checking your own insurance policy, it’s also worth exploring if your employer offers any business cover, and if so, what conditions need to be met to join the scheme.”
Potential Consequences of Non-Declaration
Failing to declare business mileage to an insurance provider can have serious repercussions. Drivers may find themselves unable to make a claim if they are involved in an accident during a business trip that wasn’t disclosed to their insurer. This could lead to out-of-pocket expenses for repairs or other liabilities, highlighting the importance of keeping insurance records accurate and up to date.
The AA advises all drivers who use their personal vehicles for work-related tasks to take a few moments to review their insurance documents and update them if necessary. A simple policy adjustment could save both time and money in the long run.
Related Topics:
Why Is My Apple Pencil Not Connecting To My iPad
Why Is My Apple Pencil 2 Not Charging
Bank of England Maintains 5% Interest Rate: Industry Reactions
