Drivers must make sure that they choose the correct class of use when purchasing their car insurance premium to avoid invalidating their cover. In terms of car insurance, class of use refers to what you intend to use your car for. When you take out an insurance policy it will ask you what class of use you want for your vehicle. There are typically three different choices of classes of use which will have different allowances and tolerances.
It is crucial that you choose a suitable class to help you avoid invalidating your cover.
Dan Hutson, Head of Motor, comparethemarket.com explained to Express.co.uk why choosing the correct class of use is so important.
He said: “Classes of use sounds like a dry insurance term but it plays an important role in the cost of your insurance policy, as well as the likelihood of a pay-out in the event of a claim.
“Classes of use are simply a description of the way in which you use your car and tends to be split into personal use, commuting and business usage.
“These different uses carry different risks, i.e. those commuting to work at busy times could be more likely to get in an accident.
“As a result of the higher risk, the premium will likely be higher.
“Equally, if you choose the wrong class when you take out the policy, it could make your cover invalid, meaning that your claim would be denied.”
Here are the three main classes of use that may affect you:
1. Social, Domestic and Pleasure (SDP)
SDP policies refer to where you use your car for everyday social driving, such as visiting friends, going shopping or the school run.
2. Commuting
This class covers everything an SDP does but also adds and includes your journey to and from work.
It usually just covers your place of work so it is worth checking if you are still covered to drop your partner off at work too.
It also typically, only one place of work is covered so if you travel to a number of places for work you may well need the next level of cover.
3. Personal Business use (SDPC+business use)
This covers everything the first two classes do but also includes business-related driving.
This will include travelling to one or more location for business purposes. You can also include your spouse or a named driver if they also use the car for business purposes.
Some insurance providers will ask for more details so they can assess how much driving you’ll be doing. From that, they can work out the risk and your business car insurance premium.
Be aware though that this class of cover doesn’t include making business deliveries of any kind.
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