Personal insurance on a commercial vehicle?

54and56

Hi all,

I've a current model VW Touareg which was imported from the UK as a five seat commercial vehicle and I use it in my day to day business which involved travelling to equipment sites and doing assessments of equipment. I carry tools but they are specialised and fit into a bag the size of a shoe box. I personally own and insure the car and claim mileage from my company.

Like every farmer and builder in the country who has multi seat commercial vehicle I also use the vehicle for personal/family use which I know isn't permitted under the tax code.

When I originally got the car I insured it under a commercial policy with my existing insurer as I was mid way through a passenger vehicle policy so it was easier to switch with them and stick with them.

I know have a renewal notice and the premium is much higher than I expected so I'm shopping around but I'm finding the combination of vehicle (some don't consider the vehicle to be a commercial vehicle) and my occupation (Valuer) is making it very difficult to get a quote but one insurer I called directly who said they wouldn't insure the vehicle commercially said they would insure it on a personal policy including business use and that quote, which is more comprehensive than the others I've received in that it includes step back no claims, 31 days driving in Europe etc is about 30% cheaper than the best commercial quote I've received.

My question to those with experience in this forum is what if any difference is there between a commercial or a personal policy? Will having a personal policy on a commercial vehicle make any difference should I need to make a claim on the policy?

Also, does anyone know if having a personal policy on the vehicle will have any impact when the time comes to renew the commercial tax or undertake the annual CVRT test?

Thanks in advance.

Triangle

usually personal policies cover social, domestic and pleasure use only. I.e. no business. If you had an accident and the insurance company found out it was being used for business at the time, they could refuse your damages I believe.

Did the insurer you talked to mention they would insure it to include business use?
I'd imagine if you told them you needed it for business use and they sold you a policy excluding business use, if they refused a claim then the ombudsman would have something to say about it!

54and56

Triangle wrote: »

Did the insurer you talked to mention they would insure it to include business use?

Yes, Social, Domestic and Pleasure use Plus Class 1 business use which is perfect for me as I don't need to carry goods.

dc2

It seems your insurance is fine if it includes Class 1 business. But is there not a risk having commercial tax on it if it is used privately. I currently have the same situation as you but pay private tax which is €514 vs €333 for commercial. It seems that if I pay the lower tax rate for a commercial vehicle I can only use it for commercial use. If I was stopped at a Garda checkpoint going somewhere not related to work I could be in trouble. Also, will having commercial tax impact an insurance claim if the accident happened while using the vehicle privately?.

54and56

dc2 wrote: »

It seems your insurance is fine if it includes Class 1 business. But is there not a risk having commercial tax on it if it is used privately. I currently have the same situation as you but pay private tax which is €514 vs €333 for commercial.

If I paid the tax privately it would be over €1,200 hence the motivation to stick with the commercial tax of €333.

dc2 wrote: »

It seems that if I pay the lower tax rate for a commercial vehicle I can only use it for commercial use. If I was stopped at a Garda checkpoint going somewhere not related to work I could be in trouble.

In theory yes but I've seen every farmer in the country get away with transporting his family and friends in his commercial 4X4 for years with apparent impunity. I don't think the Guards care. I've been stopped at checkpoints and even bringing the family home from a holiday in France with roofbox, bike rack etc and never once have I had a problem. I'm not even sure what I'd be charged with or what fine I'd receive.

dc2 wrote: »

Also, will having commercial tax impact an insurance claim if the accident happened while using the vehicle privately?.

No, 100% not. The insurers don't care what tax you are paying on the car. What matters is you have declared it to them as a commercial vehicle and your insurance covers both commercial and social and domestic use. I double checked this with my broker before taking the plunge.