Business Vehicle Insurance, matched properly
Business car and commercial vehicle insurance for cars, utes, vans and small fleets: cover levels, why business use matters, published costs, and one licensed or authorised broker to arrange it.
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Step 1 of 3What is Business Vehicle Insurance?
Business vehicle insurance, also called business motor, commercial vehicle or business car insurance, covers cars, utes and vans used for work: damage to your vehicle, and your liability for damage to other people’s vehicles and property. A private car policy may not cover business use, and CTP only covers injuries to people.
Who commonly considers it.
- Delivery & Logistics Couriers, light transport, delivery fleets
- Service Trades Mobile tradespeople, technician vans, utility vehicles
- Fleets & Company Cars Business fleets, and company cars for sales teams and executives
- Specialised Vehicles Food trucks, mobile clinics, exhibition vehicles
Levels of cover: comprehensive to third party property damage.
Insurers offer three levels of cover. What each includes depends on the policy.
- Comprehensive Accidental damage to your vehicle and theft of it, plus damage you cause to other people’s vehicles and property. Liability limits include $30 million at Allianz and $35 million at NRMA1, 3.
- Fire and theft Damage you cause to other people’s property, plus fire and theft of your vehicle1, 3.
- Third party property damage Damage you cause to other people’s vehicles and property only1.
Why business use of a car matters.
Business car insurance covers a vehicle used for work. A private car policy may not.
- Private policies “Private car insurance doesn’t normally cover you for business use, apart from driving to and from your place of work,” according to Canstar6.
- Use must be listed One insurer’s private policy doesn’t cover use for any business, trade or profession unless it’s shown on the certificate of insurance4.
- Goods for payment The same policy doesn’t cover courier or delivery work, or carrying goods for payment, unless that use is shown4.
- Occasional use Allianz’s personal policies allow occasional and limited business use7.
- When it’s disputed In March 2025, AFCA ordered an insurer to pay a claim it had denied over alleged rideshare use on a private policy, plus $1,500 in compensation19. Our guide to ute insurance for tradies sets out what four insurers’ private policies say about work use.
Optional covers some policies let you choose.
Examples from published commercial motor policies. Extras and limits vary between insurers.
A hire vehicle
Up to $3,000 after fire or theft, and optional after an accident1–3.
Windscreens
No excess on glass-only claims at Allianz; optional at other insurers1–3.
Goods you carry
Up to $5,000 of goods in transit at NRMA Business3.
Employees’ own cars
Up to $25,000 for employees’ cars used for work, at NRMA Business3.
How much does commercial vehicle insurance cost?
There’s no official average for commercial motor premiums. These are two brokers’ published estimates per year (upcover’s are per vehicle): a guide, not a quote.
For fleets, upcover’s illustrative example puts five vehicles at about $8,000 to $18,000 a year in total. upcover’s figures exclude GST, stamp duty and fees, and Morgan describes its figures as estimates only8, 9.
What affects the price of car and ute cover.
What insurers commonly look at.
Cover a car policy usually leaves out.
Motor cover doesn’t usually reach these.
- CTPInjuries to people in a crash. It’s compulsory to register a vehicle, how you buy it varies by state, and it doesn’t cover damage to vehicles or property10.
- Tools and equipmentMotor policies cap tools at $1,000 to $2,000. Broader cover for tools and equipment is sold separately, often as portable property cover1, 3.
- Goods in transitCover for goods you carry beyond a motor policy’s small limit3. Our guide explains the difference between marine cargo and goods in transit cover.
- Public liabilityOne insurer’s motor cover excludes liability while a vehicle is used as a tool of trade. Its liability section covers that use, but not while travelling to or from a worksite3.
- TrucksHeavier vehicles are usually insured under truck and transport policies.
Common exclusions in car and van policies.
Every policy lists its exclusions in its product disclosure statement (PDS). These are common examples from two insurers.
- DriversUnlicensed drivers, drivers affected by drink or drugs, and unnamed drivers when cover is restricted to named drivers2, 3.
- Paid passengers and hireCarrying passengers for payment, or hiring the vehicle out2, 3.
- LoadsA load that isn’t secured according to law, or an overloaded vehicle2.
- Keys left insideTheft when the vehicle is left unattended, unlocked and with the keys inside2.
- Unroadworthy vehiclesWhere the vehicle’s condition contributed to the loss2, 3.
- Wear and tearAnd knock-on costs such as lost profits2, 3.
Car, ute and tool theft in Australia.
Utes and tools are common targets.
In RACQ’s 2024 claims in Queensland, the LandCruiser was the most stolen model, ahead of the HiLux and Ranger17.
What AFCA has decided.
The Australian Financial Complaints Authority decides disputes between businesses and insurers. These published decisions show how policy conditions decide a claim.
- Where it was keptA company’s car was stolen from a driveway, but the policy required it to be garaged overnight. AFCA found for the insurer on a $64,304 claim. February 202618.
- How it was usedAn insurer denied a claim over alleged rideshare use on a private and commuting policy. AFCA ordered the claim paid, plus $1,500 in compensation. March 202519.
- Keys left insideA car was stolen while unlocked with the keys inside. AFCA upheld the insurer’s decision to decline the claim. September 202420.
Common questions.
Do I need business car insurance if I use my car for work?
Private car policies usually don’t cover business use beyond driving to and from work, unless that use is listed on your certificate of insurance. A broker can check how your use fits a policy.
Are my tools covered in my vehicle?
Only up to a limit, such as $1,000 with Allianz or $2,000 with NRMA Business. Broader tools cover is usually a separate policy.
Can employees drive my business vehicles?
Usually, with your permission, unless the policy restricts cover to named drivers. Drivers under 25 may have to pay an extra excess.
Is business vehicle insurance tax-deductible?
The ATO lists insurance premiums among the vehicle costs a business can claim, minus the private-use share. If you use the cents per kilometre method, the rate already includes insurance. An accountant can tell you which method suits you.
Does CTP cover damage to my ute?
No. CTP covers injuries to people, not damage to vehicles or property.
Are goods I carry covered?
Some commercial motor policies include a small amount, such as $5,000 with NRMA Business. Broader cover for goods is separate.
Does my business insurance cover work vehicles?
Public liability generally doesn’t cover a vehicle while it’s being driven. That’s what motor cover is for. Some business packs cover a vehicle used as a tool of trade, such as while loading or unloading.
Is courier or rideshare use covered?
It depends on the policy. Some commercial policies exclude couriers and rideshare vehicles, and private policies usually exclude carrying goods or passengers for payment.
Can I insure several vehicles together?
Yes. Insurers offer fleet insurance, and Allianz covers up to 20 vehicles on its commercial motor policy.
What if my vehicle is stolen with the keys inside?
Claims for vehicles left unlocked with the keys inside are commonly excluded, and AFCA has upheld insurers’ decisions to decline them.
What’s the difference between agreed value and market value?
Agreed value is a fixed amount you and your insurer set. Market value is what the vehicle would have sold for just before the loss.
Will GST be taken off my payout?
If you’re registered for GST, insurers usually reduce a claim payment by any GST credit you can claim. Check the GST section of the PDS.
Is signwriting covered?
Some policies cover signwriting as part of the vehicle, such as NRMA Business after damage.
Can I get a commercial vehicle insurance quote through COVRA?
COVRA passes your enquiry to one licensed or authorised broker, who can look at getting quotes from insurers for you. COVRA doesn’t quote or sell insurance itself.
Still have a question? A broker can talk it through with you.
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Before a brokerage can receive enquiries, we check on ASIC’s professional register that it holds, or acts under, an Australian Financial Services Licence that covers general insurance, and check its website for the covers it offers.
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How it works.
Tell us about your business
Answer a few questions about your business and the cover you’re asking about.
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We check your enquiry, then pass it to one approved, licensed or authorised broker who offers a cover you’re asking about.
The broker gets in touch
The broker who receives your enquiry contacts you to talk through your needs and options.
Guides on Business Vehicle Insurance.
Plain-English answers, with sources, to the questions businesses ask about this cover.
Ute insurance for tradies: is work use covered?
When a car policy covers work use, and what happens to tools, signwriting, canopies and hire utes.
Do sole traders need business insurance?
What the law requires, what a licence or contract can add, and what covers you if you can’t work.
Marine cargo vs goods in transit insurance
What each covers, when cover ends, who insures under Incoterms, and what carriers pay if goods are lost.
Related cover.
Other cover often considered alongside Business Vehicle Insurance.
Sources.
- Commercial Motor Vehicle Insurance, Allianz
- Commercial Motor Product Disclosure Statement, AAMI, 26 March 2024
- Business Insurance Product Disclosure Statement, NRMA, 1 May 2025
- Car Insurance Product Disclosure Statement, NRMA, 10 September 2023
- Comprehensive Car Insurance Product Disclosure Statement, AAMI, 18 September 2020
- Business car insurance, Canstar, 2 May 2025
- Personal vs commercial vehicle insurance, Allianz, 21 October 2025
- How much does commercial motor and fleet insurance cost?, upcover, 7 August 2026
- How much does commercial motor insurance cost in Australia?, Morgan Insurance Brokers, 20 November 2025
- What is CTP insurance?, Motor Accident Insurance Commission (Qld), 13 July 2026
- Deductions for motor vehicle expenses, ATO, 27 May 2026
- Victoria still leads Australia’s car crime insurance claims, Insurance Council of Australia, 4 June 2026
- Most stolen cars in Victoria, RACV, 24 September 2026
- How to protect tradie tools from theft, RACV, 29 October 2025
- Tradie tool theft spike, RACV, 4 June 2024
- Theft continues to drive increases in recorded offending, Crime Statistics Agency (Vic), June 2025
- Queensland’s most stolen vehicles in 2024 revealed, CarExpert, 26 March 2025
- Determination 12-25-233932, AFCA, 27 February 2026
- Determination 12-24-166867, AFCA, 7 March 2025
- Determination 12-00-1050361, AFCA, 18 September 2024
