How to choose the right class of use for car insurance

Key points 

• Insurers use class of use to assess your risk of making an insurance claim and to calculate the cost of your policy.

• There are different classes of use to choose from depending on how you use your car.

• If you use your car for work or commuting, your insurance premiums could be higher than someone using their car just for everyday driving.

• It’s important to choose the right class of use, otherwise your insurance may be invalid.

• You can change your class of use by contacting your insurer and this may lead to your insurance costs changing.

What does ‘class of use’ mean with car insurance? 

Class of use is a term used by insurers to help explain how a driver uses their vehicle. When you buy car insurance, you’ll be asked how you use your car and this helps an insurer to assess the risk of you claiming on the policy. 

You might just use your car for driving to the supermarket for a weekly shop or travelling to see friends, but if you use it for work you’ll need to tell your insurer. They use this information, along with lots of other factors, to calculate the cost of your premium.

What are the different classes of use? 

There are various classes of use to choose from when you buy car insurance. These can differ depending on the insurer so always double check before you buy. Here are some of the terms you might find when looking at classes of use.

Social, domestic and pleasure

If you only use your car for everyday driving, such as shopping trips, holidays, and visiting friends, this is the class of use you’ll need.

Commuting

The commuting class is for those who drive to and from their work and also includes using your car for day-to-day driving. This might include driving to a train station if you commute to work on the train too. Some insurers have a ‘social and commuting’ class.

Business 

Business use covers drivers who use their car for work, such as those who drive to different locations, to visit business clients or to work events. This is not the same as ‘commuting’, as that only covers driving to and from one permanent work location each day.   

You can usually choose the type of business class car insurance you need. This can include covering just the policyholder, or it could also include their spouse or any employees working for them. If your job involves long distance driving, such as if you’re a salesperson, you may also have to choose a different level of business use cover.

Driving tuition

If your car is going to be used mainly for someone learning to drive, then you’ll need to explore a class that’s specific to this scenario like ‘driving tuition’. 

How does it impact my car insurance price?

Car insurers look at the class of use when they decide how much to charge for car insurance. They look at a range of factors, also including the driver’s age and driving history, to decide the risk of them having an accident and making an insurance claim.

If you use your car for work, you may be on the road more than someone just using their car for weekend trips. This may increase the risk of a car accident, or something going wrong with your vehicle, which could push up the price of your car insurance policy.

What happens if I choose the wrong class of use? 

If you choose the wrong class of use for car insurance, you may be given an incorrect price and a policy that doesn’t cover how you plan to use your car. 

Your insurer may then refuse to pay out for a claim, void your policy, or reduce your settlement amount.

If you’re unsure which class to choose, always speak to your insurer before you buy the policy. 

How can I change my class of use? 

If you have car insurance but something changes, such as you start a new job and need to start using your car for it, you’ll need to tell your insurer. You can usually do this online or by phone. This may result in the price of your policy changing, but it’s important to keep your insurer informed as otherwise you may be driving with the wrong type of car insurance.

This article is for promotional or information purposes only. You must not rely on it as advice.