New research in the UK has revealed that drivers caught using a mobile phone behind the wheel could face an insurance premium increase of up to 95 per cent. The implications of this for a small business could be devastating. Fortunately, there are ways that startups and SMEs in the United Kingdom are managing to avoid problems like this. What’s more, these smarter businesses are getting the best deals on insurance and ensuring that their vehicles are completely covered.

In this article we’re going to look at exactly how they handle insurance, beginning with what could be the best method of avoiding premium increases.


Perhaps the most effective way for businesses to ensure that employees don’t get caught using mobile phones, or doing anything else which could increase premiums, is to ensure that this type of behaviour doesn’t happen in the first place. With this in mind, businesses should introduce a programme of education for all employees with company cars. Even if drivers are already fully appraised of the various laws involved, it doesn’t hurt to remind them of the rules and the implications of breaking those rules.

GAP Insurance

One of the best forms of protection from vehicle write-offs is GAP insurance. This covers the shortfall between what your main insurer will pay out and the amount outstanding in the finance agreement. In other words, GAP insurance will make sure that you or your business are not out of pocket after an accident, because even comprehensive motor insurance will often only cover the current market value of a vehicle. And it is for this reason that startup and SME owners choose it. This form of insurance is also a good idea to take out as protection against vehicle theft.

Shopping Around

Another thing that smarter business owners tend to do is to shop around when it comes to purchasing vehicle insurance. Business car insurance is generally more expensive than standard cover, because insurers often take the view that a driver and vehicle will rack up a greater mileage and therefore have a greater chance of getting into an accident. But if you search online and compare deals, it is possible to find a quote that meets your needs and doesn’t break the bank.


An effective way to reduce premiums is to install security measures in a company vehicle. Usually, this would be an alarm or immobiliser to prevent theft. It can also be a good idea to install cameras or alarms in the space where the car is kept. If a locking garage is available, a company car should be stored there overnight.

No Claims Bonuses

Smarter business owners also keep in mind that insurance companies offer no-claims discounts, which could cut costs by as much as 75%. This is why they often try not to make insurance claims unless damage to a vehicle is serious.

There are other ways that business owners are reducing their premiums and making the most of vehicle insurance, but this list should give you a good starting point. If you’re interested in issues like these, it is always worth following our business newsfeed.