What is the difference between business use and professional use on motor vehicle insurance?
Your vehicle can be insured for either private use, professional use or business use.
Private or social purposes, including driving between your home and regular place of work will be classified as private use.
Professional use is where the vehicle forms an essential part of the performance of any work or function as a Lawyer, Doctor, Actuary, Accountant, Architect or an Engineer and it also includes private use.
Business use is where the vehicle forms an essential part of the performance of any work or function and it also includes private use.
Your coversheet reflects the use that you chose. It is vital that you insure your vehicle for the correct use in order to have cover.
Scenario: If you utilise your vehicle for business purposes, your vehicle is on the road more often than if you only use it for private purposes. The chance of it being stolen or involved in an accident is therefore much greater. The premium for a vehicle being used for business purposes is higher compared to the same vehicle being used only for private purposes. If you insure your vehicle for the incorrect use you will not have cover on your vehicle in the event of a claim as the premium paid will be incorrect.
Car Insurance Additional Information
MiWay offers flexible car insurance to cover losses primarily due to an accident or theft.
In addition to accident or theft, comprehensive car insurance in South Africa covers losses due to fire and explosion, natural disasters like hail and floods and damage to the vehicle’s glass.
Additional options such as car hire and cover for non-standard sound systems and car accessories can also be added to your car insurance policy.
Car Insurance is sometimes referred to as Vehicle Insurance or Motor Insurance.
