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Does being self employed affect my car insurance?

18 March 2020

Over 2.3 million Aussies are self employed1. Working for yourself has its perks, but can it affect your car insurance? Maybe! It mainly comes down to whether or not you use your car in connection with your occupation or business.

Is your car for business use or private use?

When you take out a car insurance policy, you’ll have to specify whether the car is for business or private use. This may not be so clear cut – for self-employed people it could well vary – so it’s important to get this right before you make any policy decisions.

Using your car for private use

Private car use is generally considered to be your day-to-day commuting, from work to the shops, to school pickups and to those late-night chocolate runs. What this means is if you use your car occasionally in connection with work, this is considered private use.

Using your car for business use

Insuring your car for business use is designed to extend your cover to work-related driving. Calling on-road sales reps, real estate agents and tradies – this is for you.  Your premium will take into account the extra time you may spend on the road, and higher exposure to theft of business items, like tools and equipment.  

While this may affect your premium, if you’re a tradie with tools that may kept in or fitted to your car, this extra cover can help give you extra peace of mind. Suncorp’s Comprehensive Car Insurance will cover tools of trade for up to $1,500. Read the PDS for more information.

If you’re stumped about what type of cover applies to you, please call 13 11 55 to discuss your specific situation.

Using your car for ridesharing

Drivers who use their cars for ridesharing, through services like Uber, Ola, Didi and Shebah, need to be sure that they’ll be covered every time they hit the road. Luckily, Suncorp Car Insurance offers cover for rideshare drivers. Just make sure you let us know the car will be used for ridesharing when you take out the policy or if you decide to start ridesharing after your policy has already been set up.

Explore Suncorp’s Comprehensive Car Insurance

Ways you can save on your car insurance if you’re self employed

While the way you use your car can affect your premium if you’re self employed, there are some things you can do to save.

Keep a log of your driving for tax deductions

Come tax time, things like fuel, registration, depreciation (decline in value) and even your insurance can be claimed as deductible. This can help offset the higher premium that may apply to cars used for business. Whenever you do business errands, like meeting your suppliers and clients or driving to trade events and markets, log how many kilometres you drive. Make sure you clearly distinguish between private and business use in your log, as private use isn’t claimable.

Bundle your policies together for a multi-policy discount

If you’re using your home as a base, you’ll probably want cover for the things that are essential to running your business, like your laptop and equipment. Combining policies like your Home, Contents, and Car Insurance together can help you save. Suncorp Insurance offers a multi-policy discount, letting you save 15% by combining any three or more eligible policies. Make sure you read the T&C’s for more info on what’s eligible.

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Insurance is issued by AAI Limited ABN 48 005 297 807 trading as Suncorp Insurance. Any advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it. Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available.