A work-home vehicle conundrum...

Hi,

I have a question in relation to insuring an SUV on a private policy and taxing it as commercial. The details of it are: I work as a sole trader and have a company registered etc so all the paper work is covered. However, I need a car for private use and for carrying equipment for work etc. The insurance company have told me the only way to have any private use of a commercial SUV would be to insure it privately with a clause for it to have work use also. I'm trying to find out if I insure it as private will I also have to tax it as private, even though it is a commercial vehicle and primarily used for business. My only other option is to run and insure two different vehicles, only able to use my no-claims discount on one, making it extremely expensive.

Paul Cuddihy (Drogheda)

May 2019 Filed under: commercial vehicle

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Expert answer

Hi Paul,

I think in this case, tax is the more serious issue than insurance. From what you’ve explained, you’re planning to tax your SUV as a commercial vehicle, but still use it for private and domestic tasks, and that I’m afraid is a big no-no. It’s specifically prohibited to use a vehicle taxed as a commercial for private, domestic, or pleasure purposes, and that leaves you open to a pretty hefty fine. As for insurance, you can always shop around to find a policy that suits you better, but as always it’s best to be up front and honest with them to avoid any issues down the line if you need to make a claim. Different insurers will have different policies for commercial and private vehicle insurance, and you might be better off finding a good broker who specialises in such mixed-use policies. 

Neil Briscoe - Complete Car Advisor
@neilmbriscoe