If your employees are using their own private vehicles for work purposes you are not obliged to pay for their motor insurance, but you are required to ensure that they have the minimum cover required by law. Your employees should disclose the fact that they are using their personal vehicles for work purposes to their motor insurance provider. 

There are three main types of motor insurance: 

THIRD PARTY: The minimum cover required by law. It covers you against costs that arise as a result of injuries to other people and damage to their vehicle 

THIRD PARTY FIRE & THEFT: This includes the same level of protection as third party but also covers for loss of or damage to your vehicles by fire or theft. 

COMPREHENSIVE: This is the highest level of cover available. iT includes the same level of protection as third party, fire and theft, but also provides cover for your vehicles against accidental damage. Comprehensive policies will often cover personal belongings left in your vehicles and medical expenses, and may provide personal accident benefits, for example, if the driver dies or loses their eyesight. They may also cover goods or tools carried in connection with your business. 

Motor policies usually come with a 24-hour accident recovery helpline and may provide courtesy vehicles while your vehicles are being repaired. Specialist motor insurance policies are available if motor vehicles form a core part of your business, for example if you run a taxi company or a courier service.  

It is important to read your policy terms in detail to understand all exclusions that apply to your policy and what is not covered. Typically, commercial motor insurance does not cover:

• Wear and tear
• Deliberate negligence
• Theft if keys were left in the vehicle

Another important factor to consider is whether your insurance policy providers cover for commercial vehicles to be used in a private capacity by company employees. If your vehicles are used this way, ensuring your policy provides cover as often they are excluded on fleet policies.