Business Car Insurance — Options & Costs

  • Compare standard car insurance policies that cover business use to dedicated commercial car insurance.
  • A commercial car insurance policy could cost 10-20% more per month, based on analysis by Money.com.au.
Business car insurance
Business car insurance

Business car insurance comparison (comprehensive policies)

The table below shows a selection of car insurance providers offering comprehensive policies, with business coverage as an option. You’ll need to specify that your vehicle will be used for business when you request a quote. The table is sorted alphabetically based on the provider name. We are not making a recommendation about any particular product.

1st for Women

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

No

Discount available

No

Visit provider

AAMI

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

No

Discount available
  • $50 off when you quote and buy a new policy online.
Visit provider

Allianz

Business car insurance option

Yes, including dedicated commercial car insurance

Optional ridesharing cover

Yes

Pay monthly at no extra cost

Yes

Discount available

No

Visit provider

Apia

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

No

Discount available
  • 10% off when you quote & buy online.
Visit provider

Australia Post

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

No

Discount available
  • Save $100 on your first year's premium when you buy online.
Visit provider

Bank of Melbourne

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

Yes

Discount available
  • Save up to 10% on your first year’s premium when buying a new policy online.
Visit provider

BankSA

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

Yes

Discount available
  • Save up to 10% on your first year’s premium when buying a new policy online.
Visit provider

Bankwest

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

Yes

Discount available
  • Save up to 10% on your first year’s premium when buying a new policy online.
Visit provider

Beyond Bank

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

No

Discount available
  • Save up to 10% on your first year’s premium when buying a new policy online.
Visit provider

Bingle

Business car insurance option

Yes

Optional ridesharing cover

Yes

Pay monthly at no extra cost

No

Discount available

No

Visit provider

Budget Direct

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

No

Discount available
  • 15% off your first year's premium for a new policy purchased online.
Visit provider

Carpeesh

Business car insurance option

Yes

Optional ridesharing cover

Yes

Pay monthly at no extra cost

No

Discount available

No

Visit provider

Commonwealth Bank

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

Yes

Discount available
  • Save up to 10% when you apply online.
Visit provider

Elders Insurance

Business car insurance option

Yes, including dedicated commercial car insurance

Optional ridesharing cover

No

Pay monthly at no extra cost

No

Discount available

No

Visit provider

GIO

Business car insurance option

Yes, including dedicated commercial car insurance

Optional ridesharing cover

No

Pay monthly at no extra cost

No

Discount available
  • Save 10% when you buy online.
Visit provider

HSBC

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

Yes

Discount available
  • Save up to 10% on your first year’s premium when buying a new policy online.
Visit provider

Huddle

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

No

Discount available
  • Potential saving with pay as you drive option.
Visit provider

ING

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

No

Discount available
  • 15% off your first year's premium for a new policy purchased online.
Visit provider

Kogan Insurance

Business car insurance option

Yes

Optional ridesharing cover

Yes

Pay monthly at no extra cost

No

Discount available
  • $125 off new online Kogan comprehensive car insurance policies.
Visit provider

NAB

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

No

Discount available
  • Up to 10% discount in the first year when you quote and buy online.
Visit provider

Oceania Insurance

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

No

Discount available

No

Visit provider

Ozicare

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

No

Discount available

No

Visit provider

PD Insurance

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

No

Discount available

No

Visit provider

People’s Choice

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

No

Discount available
  • Potential saving when you drive less than 10,000km.
Visit provider

QBE

Business car insurance option

Yes, including dedicated commercial car insurance

Optional ridesharing cover

Yes

Pay monthly at no extra cost

No

Discount available
  • Save $75 online on new comprehensive car insurance.
Visit provider

RAA (South Australia only)

Business car insurance option

Yes

Optional ridesharing cover

Yes

Pay monthly at no extra cost

Yes

Discount available
  • 10% multi-policy discount on each policy when you hold three or more (excluding travel).
Visit provider

RACQ (Queensland only)

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

No

Discount available
  • Save $25 when you buy a policy online.
Visit provider

RACT (Tasmania only)

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

No

Discount available

No

Visit provider

RACV (Victoria only)

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

No

Discount available
  • Multi-policy discount of 10% per policy with two or more eligible policies.
Visit provider

Real Insurance

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

No

Discount available

No

Visit provider

Rollin

Business car insurance option

Yes, if you install the Rollin app

Optional ridesharing cover

No

Pay monthly at no extra cost

Monthly only

Discount available

No

Visit provider

St.George Bank

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

No

Discount available
  • Save up to 10% in the first year when you quote and buy a new policy online.
Visit provider

Suncorp

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

No

Discount available
  • Save $50 when you quote & buy online.
Visit provider

Virgin Money

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

No

Discount available
  • 15% off the first year’s premium when you purchase online.
Visit provider

Westpac

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

Yes

Discount available
  • Save up to 10% in the first year when you quote and buy a new policy online.
Visit provider

Youi

Business car insurance option

Yes

Optional ridesharing cover

No

Pay monthly at no extra cost

No

Discount available

No

Visit provider
Business car insurance optionOptional ridesharing coverPay monthly at no extra costDiscount availableVisit provider

1st for Women

Yes

No

No

No

AAMI

Yes

No

No

  • $50 off when you quote and buy a new policy online.

Allianz

Yes, including dedicated commercial car insurance

Yes

Yes

No

Apia

Yes

No

No

  • 10% off when you quote & buy online.

Australia Post

Yes

No

No

  • Save $100 on your first year's premium when you buy online.

Bank of Melbourne

Yes

No

Yes

  • Save up to 10% on your first year’s premium when buying a new policy online.

BankSA

Yes

No

Yes

  • Save up to 10% on your first year’s premium when buying a new policy online.

Bankwest

Yes

No

Yes

  • Save up to 10% on your first year’s premium when buying a new policy online.

Beyond Bank

Yes

No

No

  • Save up to 10% on your first year’s premium when buying a new policy online.

Bingle

Yes

Yes

No

No

Budget Direct

Yes

No

No

  • 15% off your first year's premium for a new policy purchased online.

Carpeesh

Yes

Yes

No

No

Commonwealth Bank

Yes

No

Yes

  • Save up to 10% when you apply online.

Elders Insurance

Yes, including dedicated commercial car insurance

No

No

No

GIO

Yes, including dedicated commercial car insurance

No

No

  • Save 10% when you buy online.

HSBC

Yes

No

Yes

  • Save up to 10% on your first year’s premium when buying a new policy online.

Huddle

Yes

No

No

  • Potential saving with pay as you drive option.

ING

Yes

No

No

  • 15% off your first year's premium for a new policy purchased online.

Kogan Insurance

Yes

Yes

No

  • $125 off new online Kogan comprehensive car insurance policies.

NAB

Yes

No

No

  • Up to 10% discount in the first year when you quote and buy online.

Oceania Insurance

Yes

No

No

No

Ozicare

Yes

No

No

No

PD Insurance

Yes

No

No

No

People’s Choice

Yes

No

No

  • Potential saving when you drive less than 10,000km.

QBE

Yes, including dedicated commercial car insurance

Yes

No

  • Save $75 online on new comprehensive car insurance.

RAA (South Australia only)

Yes

Yes

Yes

  • 10% multi-policy discount on each policy when you hold three or more (excluding travel).

RACQ (Queensland only)

Yes

No

No

  • Save $25 when you buy a policy online.

RACT (Tasmania only)

Yes

No

No

No

RACV (Victoria only)

Yes

No

No

  • Multi-policy discount of 10% per policy with two or more eligible policies.

Real Insurance

Yes

No

No

No

Rollin

Yes, if you install the Rollin app

No

Monthly only

No

St.George Bank

Yes

No

No

  • Save up to 10% in the first year when you quote and buy a new policy online.

Suncorp

Yes

No

No

  • Save $50 when you quote & buy online.

Virgin Money

Yes

No

No

  • 15% off the first year’s premium when you purchase online.

Westpac

Yes

No

Yes

  • Save up to 10% in the first year when you quote and buy a new policy online.

Youi

Yes

No

No

No

Please note this is an overview of providers that offer business car insurance as an option. It’s not a full list of what the policies offer or exclude. We recommend getting a personalised quote and checking the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the policy to understand what is and isn’t covered and what limits, sub-limits, exclusions, terms and conditions apply before deciding if the product is suitable for you and your business. While this is an extensive list of business car insurance providers in Australia, we cannot guarantee that all providers are shown.

Business car insurance compared: ‘business use’ vs commercial car insurance

There are two types of car insurance for business vehicles:

1. Business car insurance — a regular car insurance policy where you can add cover for business-related activities.

2. Commercial car insurance — a standalone policy specifically designed to provide cover for vehicles used for business purposes.

We explain these options in detail below.

1. Business car insurance

This is a regular car insurance policy that covers your day-to-day driving and work-related activities like visiting clients or work sites. It’s suitable when there’s a crossover between private and business use for the same vehicle. For instance, this might apply to you if you work as a real estate agent or sales representative. ‘Business use’ means the car is not used as an essential part of earning an income, according to Budget Direct.

Some useful tips if you plan to use your private vehicle for business purposes:

  • Inform your insurer to extend your cover to business use, or you may not be covered if you have an accident while using your car for business. This is with the exception of your commute to work.
  • You should be able to select ‘business use’ when buying a policy online. You’ll be asked for details about your business activities. See the example from Youi below.
Youi business car insurance quote

Insurers define ‘business activities’ differently depending on their underwriting guidelines, so read the policy’s Product Disclosure Statement (PDS) carefully.

Some car insurance policies may not cover part-time ridesharing for platforms like Uber, or business activities that involve carrying passengers or delivering goods. For this, you might need a specific rideshare car insurance or courier insurance.

It’s worth noting that your personal car insurance might not provide coverage for damage to third-party property or your own vehicle when used for business purposes, according to Allianz. Additionally, not every policy or insurer covers incidents while you’re using the car for business use.

Business car insurance pros & cons

Pros

Generally cheaper than commercial car insurance

Cons

Lower benefit limits compared to commercial car insurance

Pros

Cover for personal and occasional business use through the same policy

Cons

Usually does not cover ridesharing, or business activities that involve carrying passengers or delivering goods

Pros

May be suitable for self-employed individuals and sole traders

Cons

Only covers your personal liability for damages or injuries to other people, but not your business liability (if you injure someone during a work-related activity)

ProsCons

Generally cheaper than commercial car insurance

Lower benefit limits compared to commercial car insurance

Cover for personal and occasional business use through the same policy

Usually does not cover ridesharing, or business activities that involve carrying passengers or delivering goods

May be suitable for self-employed individuals and sole traders

Only covers your personal liability for damages or injuries to other people, but not your business liability (if you injure someone during a work-related activity)

2. Commercial car insurance

Commercial car insurance is designed to cover vehicles exclusively used for business purposes. For example, if you have a mobile business or transport goods as part of your business.

It often comes with higher benefits limits (the maximum your insurer will pay). Some commercial vehicle insurance policies provide cover for up to $50 million in legal liability, whereas business car insurance usually has a maximum limit of $30 million.

Here other notable features of commercial car insurance:

  • It’s available to sole traders, small businesses, franchises and larger organisations.
  • It provides the option to insure your work vehicle or a fleet of vehicles under a single policy. For example, Allianz offers cover for up to 20 commercial vehicles under one policy, while GIO covers up to 14 vehicles under one policy.
  • It’s designed to cover a wider range of vehicle sizes, including cars, utes, 4WD, vans and even equipment like bobcats and forklifts. Vehicles up to 5 tonnes can be covered, depending on the insurer.
  • It can often be packaged with other business insurance policies like public liability insurance and indemnity insurance (covers potential losses or damages arising from negligence or wrongful acts).

Commercial car insurance pros & cons

ProsCon

Cover for a broader range of vehicles, including commercial fleets & large commercial vehicles

More expensive due to increased risks linked to owning a commercial vehicle. (i.e. vehicles being on the road more often)

Generally includes cover for all business employees/partners and business liability

Commercial car insurance is available from a smaller range of insurers

Can include cover for ridesharing, and delivery services (from select insurers)

More excesses payable depending on the type of claim (e.g. tipping excess, outside radius excess)

Which providers offer dedicated commercial car insurance?

  • AAMI
  • Allianz
  • All Trades Cover
  • CGU Insurance
  • Elders Insurance
  • HIA Insurance
  • GIO
  • National Cover
  • QBE

Business car insurance levels: How much cover do you need?

There are generally three levels of cover available. Each provides comparable benefits, whether you need car insurance for your private vehicle with some cover for business use, or commercial car insurance for your business vehicle(s).

Comprehensive business car insurance

Comprehensive business or commercial car insurance offers the broadest range of benefits. It covers your private or business vehicle(s) for accidental damage, including damage caused by fire, theft, and weather events like floods, storms and hail. It also covers your liability for damage you cause other people's vehicles or property.

In the case of commercial car insurance, it may also include a lease payout benefit. This means that if your vehicle is a total loss, your insurer will cover the shortfall if the outstanding amount on a lease or hire purchase agreement exceeds the market value of your vehicle.

Having comprehensive car insurance is often a prerequisite when taking out a car loan or a novated lease.

Comprehensive business car insurance: What’s covered?

This table shows what’s generally included under comprehensive business car insurance, with some specific inclusions of commercial car insurance. Inclusions will vary depending on your individual policy and insurer. Check your insurer’s PDS for the full list of inclusions, limits, sub-limits and conditions of cover.

Inclusions

Loss or accidental damage to your vehicle

Comprehensive car insurance with business use

Yes

Comprehensive commercial car insurance

Yes

Inclusions

Accidental damage to other people's vehicle or property

Comprehensive car insurance with business use

Yes

Comprehensive commercial car insurance

Yes

Inclusions

New car replacement (if your vehicle is stolen or written off)

Comprehensive car insurance with business use

Yes

Comprehensive commercial car insurance

Yes

Inclusions

Lease, hire purchase or financial agreement payout

Comprehensive car insurance with business use

No

Comprehensive commercial car insurance

Yes

Inclusions

Car hire after an accident

Comprehensive car insurance with business use

Yes (optional)

Comprehensive commercial car insurance

Yes

Inclusions

Heavy vehicle hire after an accident

Comprehensive car insurance with business use

No

Comprehensive commercial car insurance

Yes

Inclusions

Towing costs

Comprehensive car insurance with business use

Yes

Comprehensive commercial car insurance

Yes

Inclusions

Fire & theft cover

Comprehensive car insurance with business use

Yes

Comprehensive commercial car insurance

Yes

Inclusions

Hire car after theft

Comprehensive car insurance with business use

Yes

Comprehensive commercial car insurance

Yes

Inclusions

Hail, storm or flood damage

Comprehensive car insurance with business use

Yes

Comprehensive commercial car insurance

Yes

Inclusions

Damage by uninsured drivers

Comprehensive car insurance with business use

Yes

Comprehensive commercial car insurance

Yes

Inclusions

Personal effects

Comprehensive car insurance with business use

Yes

Comprehensive commercial car insurance

Yes

Inclusions

Tools & equipment

Comprehensive car insurance with business use

Yes (optional)

Comprehensive commercial car insurance

Yes

Inclusions

Emergency accommodation and transport costs

Comprehensive car insurance with business use

Yes (optional)

Comprehensive commercial car insurance

Yes

Inclusions

Ridesharing cover

Comprehensive car insurance with business use

Yes (optional) from select insurers

Comprehensive commercial car insurance

Yes & available as standalone cover

Inclusions

Trailer cover

Comprehensive car insurance with business use

Yes (optional)

Comprehensive commercial car insurance

Yes

Inclusions

Cover for non-standard equipment (not attached by the manufacturer)

Comprehensive car insurance with business use

No

Comprehensive commercial car insurance

Yes

Inclusions

Cover for large commercial vehicles such & earth-moving equipment

Comprehensive car insurance with business use

No

Comprehensive commercial car insurance

Yes

Inclusions

Fire suppression system recharge for farming equipment (if you have discharged a suppression system as a result of a fire claim)

Comprehensive car insurance with business use

No

Comprehensive commercial car insurance

Yes

Inclusions

Tarpaulins, gates, chains, dogs and straps

Comprehensive car insurance with business use

No

Comprehensive commercial car insurance

Yes

Inclusions

Damage to sign writing or fixed advertising signs on your vehicle

Comprehensive car insurance with business use

No

Comprehensive commercial car insurance

Yes

Inclusions

Redelivery costs (return your vehicle to normal parked address following repairs)

Comprehensive car insurance with business use

No

Comprehensive commercial car insurance

Yes

Inclusions

Maritime liability if your vehicle is being transported by sea between Australian ports

Comprehensive car insurance with business use

No

Comprehensive commercial car insurance

Yes

Inclusions

Driver accident compensation (if someone who drives the business vehicle is injured or suffers a permanent disability)

Comprehensive car insurance with business use

No

Comprehensive commercial car insurance

Yes

Inclusions

Funeral expenses (if someone who drives business vehicle sustains fatal injuries)

Comprehensive car insurance with business use

No

Comprehensive commercial car insurance

Yes

Inclusions

Trauma counselling

Comprehensive car insurance with business use

No

Comprehensive commercial car insurance

Yes

InclusionsComprehensive car insurance with business useComprehensive commercial car insurance

Loss or accidental damage to your vehicle

Yes

Yes

Accidental damage to other people's vehicle or property

Yes

Yes

New car replacement (if your vehicle is stolen or written off)

Yes

Yes

Lease, hire purchase or financial agreement payout

No

Yes

Car hire after an accident

Yes (optional)

Yes

Heavy vehicle hire after an accident

No

Yes

Towing costs

Yes

Yes

Fire & theft cover

Yes

Yes

Hire car after theft

Yes

Yes

Hail, storm or flood damage

Yes

Yes

Damage by uninsured drivers

Yes

Yes

Personal effects

Yes

Yes

Tools & equipment

Yes (optional)

Yes

Emergency accommodation and transport costs

Yes (optional)

Yes

Ridesharing cover

Yes (optional) from select insurers

Yes & available as standalone cover

Trailer cover

Yes (optional)

Yes

Cover for non-standard equipment (not attached by the manufacturer)

No

Yes

Cover for large commercial vehicles such & earth-moving equipment

No

Yes

Fire suppression system recharge for farming equipment (if you have discharged a suppression system as a result of a fire claim)

No

Yes

Tarpaulins, gates, chains, dogs and straps

No

Yes

Damage to sign writing or fixed advertising signs on your vehicle

No

Yes

Redelivery costs (return your vehicle to normal parked address following repairs)

No

Yes

Maritime liability if your vehicle is being transported by sea between Australian ports

No

Yes

Driver accident compensation (if someone who drives the business vehicle is injured or suffers a permanent disability)

No

Yes

Funeral expenses (if someone who drives business vehicle sustains fatal injuries)

No

Yes

Trauma counselling

No

Yes

Source: Suncorp, AAMI, Elders Insurance & GIO.

Third party property damage business car insurance

Third party property only car insurance for business covers damage you cause to someone else’s car or property (including your legal liability if you must pay compensation) and damage to your vehicle or property by uninsured motorists.

This is the lowest level of optional car insurance. Third party property only cover is typically included in comprehensive car insurance policies, or available as a standalone policy.

A key point to note is that with standard car insurance, even if you have some business coverage, you might not be protected for third-party liability when using your vehicle for business purposes. Meanwhile, business liability is generally covered under commercial car insurance.

Third party property damage business car insurance: What’s covered?

This table shows what’s generally included in third party property damage business car insurance, with some specific inclusions of commercial car insurance. Inclusions will vary depending on your individual policy and insurer. Check your insurer’s PDS for the full list of inclusions, limits, sub-limits and conditions of cover.

Inclusions

Accidental loss or damage to other people’s property

Third party property damage business car insurance

Yes

Third party property damage commercial car insurance

Yes

Inclusions

Third party damage involving carriage of dangerous good

Third party property damage business car insurance

No

Third party property damage commercial car insurance

Yes

Inclusions

Indemnity for losses suffered from loss or damage to business vehicle

Third party property damage business car insurance

No

Third party property damage commercial car insurance

Yes

Inclusions

Third-party legal liability (if you must pay compensation for damages)

Third party property damage business car insurance

Yes

Third party property damage commercial car insurance

Yes

Inclusions

Business legal liability for damage to other people’s property involving a business vehicle

Third party property damage business car insurance

No

Third party property damage commercial car insurance

Yes

Inclusions

Damage by uninsured drivers

Third party property damage business car insurance

Yes

Third party property damage commercial car insurance

Yes

Inclusions

Third party liability for damage caused by the transportation of dangerous goods

Third party property damage business car insurance

No

Third party property damage commercial car insurance

Yes

Inclusions

Cleanup expenses for accidental pollution or contamination of land, water, or the atmosphere resulting from an accident

Third party property damage business car insurance

No

Third party property damage commercial car insurance

Yes

InclusionsThird party property damage business car insuranceThird party property damage commercial car insurance

Accidental loss or damage to other people’s property

Yes

Yes

Third party damage involving carriage of dangerous good

No

Yes

Indemnity for losses suffered from loss or damage to business vehicle

No

Yes

Third-party legal liability (if you must pay compensation for damages)

Yes

Yes

Business legal liability for damage to other people’s property involving a business vehicle

No

Yes

Damage by uninsured drivers

Yes

Yes

Third party liability for damage caused by the transportation of dangerous goods

No

Yes

Cleanup expenses for accidental pollution or contamination of land, water, or the atmosphere resulting from an accident

No

Yes

Source: Suncorp, AAMI, Elders Insurance & GIO.

Third party property fire & theft business car insurance

Third party property fire and theft cover is an optional extra that provides all the benefits of third party property only, plus additional cover for loss or damage to your private or business vehicle(s) caused by fire, theft or attempted theft. It’s typically included as a standard benefit in comprehensive business car insurance policies, including commercial vehicle insurance but can also be purchased as a separate policy.

Third party property fire and theft business car insurance doesn’t typically cover the theft of tools or equipment (only theft of the vehicle itself), but a commercial car insurance policy generally will.

These policies are in addition to mandatory Compulsory Third Party (CTP) insurance required for all private and business vehicles registered in Australia. This includes forklifts and tractors which need conditional registration with CTP if used on public roads.

Third party property fire & theft business car insurance: What’s covered?

This table shows what’s generally included in third party fire and theft business car insurance, with some specific inclusions of commercial car insurance. Inclusions will vary depending on your individual policy and insurer. Check your insurer’s PDS for the full list of inclusions, limits, sub-limits and conditions of cover.

Inclusions

Damage to other people’s property involving a business vehicle

Third party fire & theft damage business car insurance

Yes

Third party fire & theft commercial car insurance

Yes

Inclusions

Business legal liability for damage to other people’s property involving a business vehicle

Third party fire & theft damage business car insurance

No

Third party fire & theft commercial car insurance

Yes

Inclusions

Third-party legal liability for loss or damage caused while using a substitute vehicle

Third party fire & theft damage business car insurance

No

Third party fire & theft commercial car insurance

Yes

Inclusions

Fire & theft cover

Third party fire & theft damage business car insurance

Yes

Third party fire & theft commercial car insurance

Yes

Inclusions

Hire car following theft

Third party fire & theft damage business car insurance

Yes

Third party fire & theft commercial car insurance

Yes

Inclusions

Personal effects replacement

Third party fire & theft damage business car insurance

Yes

Third party fire & theft commercial car insurance

Yes

Inclusions

Towing costs

Third party fire & theft damage business car insurance

Yes

Third party fire & theft commercial car insurance

Yes

Inclusions

Damage by uninsured drivers

Third party fire & theft damage business car insurance

Yes

Third party fire & theft commercial car insurance

Yes

Inclusions

Tools & equipment

Third party fire & theft damage business car insurance

Yes (optional). Theft of tools/equipment not usually covered under this type of policy

Third party fire & theft commercial car insurance

Yes

InclusionsThird party fire & theft damage business car insuranceThird party fire & theft commercial car insurance

Damage to other people’s property involving a business vehicle

Yes

Yes

Business legal liability for damage to other people’s property involving a business vehicle

No

Yes

Third-party legal liability for loss or damage caused while using a substitute vehicle

No

Yes

Fire & theft cover

Yes

Yes

Hire car following theft

Yes

Yes

Personal effects replacement

Yes

Yes

Towing costs

Yes

Yes

Damage by uninsured drivers

Yes

Yes

Tools & equipment

Yes (optional). Theft of tools/equipment not usually covered under this type of policy

Yes

Source: Suncorp, AAMI, Elders Insurance & GIO.

What’s not covered by car insurance for business?

Here are some common exclusions that apply to business and commercial car insurance:

  • Damage that existed before taking out your policy.
  • Intentional damage caused by you or by someone acting with your consent.
  • Unregistered vehicles and unroadworthy vehicles.
  • Unauthorised repairs or modifications.
  • Damage to your vehicle’s tyres caused by application of brakes, punctures, cuts or bursting, unless from an accident covered under your policy.
  • Damage caused by using the wrong fuel or lubricant.
  • Loss or damage caused by the use of asbestos or dangerous goods.
  • Loss or damage caused by a driver under the influence of alcohol or any other illegal substance.
  • Loss or damage caused by a driver with a suspended or cancelled driver's licence.
  • Loss or damage, injury, death or legal liability in connection with a cyber incident.

Refer to the insurer’s PDS for the full list of exclusions and limitations of your policy.

Compare costs of business car insurance from popular insurers in Australia

This example shows the cost difference between business car insurance and commercial car insurance from selected providers for a 2019 Mitsubishi ASX. Quotes are based on a 30-year old female driver in QLD driving a 2019 Mitsubishi ASX (private & business use), working as real estate agent and driving up to $20,000km annually. Comparable quotes were obtained with the same details for comprehensive commercial car insurance. Prices shown are for these scenarios only and are not necessarily indicative of what you may pay.

Insurance provider

Elders Insurance

Comprehensive business car insurance (monthly premium)

$133.50

Comprehensive commercial car insurance (monthly premium)

$147.30

Insurance provider

AAMI

Comprehensive business car insurance (monthly premium)

$138.52

Comprehensive commercial car insurance (monthly premium)

$161.85

Insurance provider

GIO

Comprehensive business car insurance (monthly premium)

$135.78

Comprehensive commercial car insurance (monthly premium)

$167.10

Insurance providerComprehensive business car insurance (monthly premium)Comprehensive commercial car insurance (monthly premium)

Elders Insurance

$133.50

$147.30

AAMI

$138.52

$161.85

GIO

$135.78

$167.10

Quotes obtained on 15 January 2024.

Business car insurance FAQs

Business car insurance covers passenger vehicles with a load not exceeding one tonne, like hatchbacks, sedans, wagons, some utes, vans and 4WDs. Commercial car insurance can also be used to cover these kinds of vehicles, but generally is available for other vehicle types, including:

  • Industrial vehicles like trucks, bobcats, mini loaders, forklifts and ride-on mowers.
  • Trailers, including pet grooming trailers and towed woodchippers.
  • Heavy vehicles with a carrying capacity of up to 5 tonnes.

CTP insurance is the only mandatory car insurance in Australia for both private and business vehicles. It covers your personal liability if you injure or kill someone in a car or road accident. While business car insurance is not mandatory, it is often a condition of car finance.

In certain industries, such as ridesharing, transporting passengers, or delivering goods for payment, having an insurance policy that includes third-party liability cover may be a condition of the licence to operate.

If you use your car for both personal and business purposes, you may be able to deduct the portion of your car insurance that corresponds with the business use, according to the Australian Taxation Office (ATO).

If you’re a sole trader, you can claim a tax deduction on your car insurance premiums using the cents-per-kilometre method or a logbook. Business owners (who use their vehicle solely for business) may use the actual costs method by calculating the actual additional expenses incurred.

You may need comprehensive car insurance with optional cover for ridesharing if you use your vehicle on platforms like Uber. Keep in mind not all insurers offer this benefit. Alternatively, you can take out a dedicated rideshare car insurance policy which may provide more tailored coverage.

If you’re a sole trader or self-employed and use your vehicle as part of your business, you may only need a standard car insurance policy with business use included. However, depending on the situation a commercial car insurance policy may be more suitable it’s best to speak with your insurer or a broker about your options, as it will likely depend on:

  • Your coverage needs for accidental damage and third party liability
  • The type of work you do & the way you use your vehicle
  • The industry you’re in (e.g. delivery of goods is a general exclusion)
  • Your exposure to additional risks & potential theft of equipment.

Regardless of whether you run a small business or a large organisation, you may need a commercial car insurance if you have a company car or a fleet of company cars. This type of dedicated cover can protect you and your business for specified risks associated with being on the road for business, such as damage to commercial vehicles, and your business liability for damages or injuries incurred by third parties. Commercial car insurance covers all business employees, whereas personal car insurance only covers you and any listed drivers.

Written by

Megan Birot Money.com.au writer

Senior Finance Writer

Megan Birot

Reviewed by

Sean Callery Editor Money.com.au

Editor

Sean Callery

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