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Ute insurance for tradies: is work use covered?

Ute insurance for tradies comes as a private car policy or a commercial motor policy. A private policy covers work use only as far as its wording and your certificate allow, and some exclude any business use that isn’t declared. Commercial motor policies are written for work vehicles and add set amounts for tools, signwriting and hire vehicles.

Written by COVRA · Updated · Sources

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Locked aluminium toolboxes, a ladder rack and a canopy on the tray of a white ute

Does car insurance cover business use?

A private car policy can cover a ute used for work, but each insurer draws the line in a different place.

Private policy What it says about work use
NRMA Doesn’t cover use “for any business, trade or profession” unless that business is shown on your certificate of insurance1.
AAMI Private use means the car “is not used in connection with earning any income”, and “travel to and from your place of work is private use”. The policy requires you to tell AAMI if that changes2.
Budget Direct Three levels. The first covers private use and travel between home and a regular workplace. Occasional business use means the car “does not form an essential part of earning an income”. Anything you haven’t declared isn’t covered3.
RACV No business-use exclusion. But if you change the way you use the vehicle and don’t say so, RACV may refuse or reduce a claim where that contributes to an incident, or cancel the policy if it wouldn’t have offered cover4.

Allianz describes personal policies with business use as meant for private use “with occasional and limited business use”, and commercial vehicle insurance as “specifically designed” for vehicles used for business5. No law requires either: CTP, which comes with registration, covers injuries to people, not damage to your ute6. What you declare matters. In a 2026 AFCA decision, a van insured for private and commuting use was used for deliveries once or twice a week, and AFCA upheld the insurer’s refusal to pay because it wouldn’t have issued the policy7.

Are tools in the ute covered?

Some motor policies pay for tools, up to a limit. For theft, most need signs of forced entry.

Policy Tools cover When it pays
NRMA car, private Up to $1,500, on comprehensive cover Damage in a covered incident, or theft from the locked ute or a locked toolbox fitted to it, with evidence of forced entry. Phones, laptops and other electronics aren’t covered1
AAMI car, private None Personal property cover excludes tools and “items used for business, trade or profession”2
RACV car, private None Personal items cover excludes “tools of trade”4
Allianz, commercial Up to $1,000 each event Theft by forcible and violent entry to the locked vehicle or a toolbox permanently fixed to it, or damage in an accident8
CGU business, commercial Up to $2,000 for personal effects and tools Loss or damage in an accident involving your vehicle9

AAMI’s commercial policy covers a fitted tool box, but not what’s in it10. Broader tools cover is usually a separate policy, with similar theft conditions: in a 2025 AFCA decision, an equipment policy didn’t pay for tools taken from ute toolboxes that a police report said were left open11. Our tradie insurance guide covers tools policies and theft figures.

Signwriting, racks and canopies.

Commercial policies list the accessories they cover. Other items are covered only if they’re agreed and shown on the policy.

  • Listed accessories AAMI’s commercial policy covers accessories attached to or in the vehicle, including fixed roof and ladder racks, tool boxes, signwriting, decals, tow bars and a winch. Others are covered only if AAMI has agreed and they’re shown on your schedule10.
  • Signwriting CGU’s and NRMA’s business policies pay reasonable costs for signwriting, murals and fixed advertising signs that form a permanent part of the vehicle, after damage9, 12.
  • Other accessories The same policies cap non-standard accessories at 25% of the vehicle’s market value or $5,000, whichever is less, unless the certificate says otherwise9, 12.
  • Canopies None of the wordings we read names canopies. In a 2025 AFCA decision, a stolen ute was written off at its $26,650 agreed value, meaning the fixed amount set in the policy. The owner sought $30,000 more for a jack-off canopy, roof rack and 12-volt gear. AFCA found the canopy was attached, so it was part of the agreed value and went with the wreck13.

Hire utes, drivers and time off the road.

What some policies pay while the ute is off the road, and who can drive it.

  • After theft or fire A hire vehicle, up to $3,000 at Allianz and CGU8, 9.
  • After an accident Usually an option you add. Allianz’s pays for up to 42 days of hire, and CGU’s up to $2,500 if it’s shown on your certificate8, 9.
  • Lost income Loss of use, meaning what you lose because you can’t use the ute, is excluded by both8, 9. In a 2024 AFCA decision, a business owner’s hire cover was capped at 14 days at $50 a day. AFCA found the insurer’s payments of $727.51 for hire, $500 for emergency travel and $825 for signwriting were fair, and that the policy didn’t cover the owner’s other losses from being off the road14.
  • Young drivers Commercial policies commonly add an excess for drivers under 25 or newly licensed8, 9. AAMI’s, for a ute: $500 under 21, $300 aged 21 to 24, and $250 for an inexperienced driver10.
  • Named drivers Budget Direct’s business-use level doesn’t cover a driver using the car for business unless they’re listed on the certificate3.

upcover puts commercial motor cover for a trade ute or van at $1,800 to $3,500 a year per vehicle, before GST, stamp duty and fees15. Our business motor insurance guide has more costs, the levels of cover and theft figures.

FAQ

Common questions.

Does car insurance cover business use?

It depends on the policy and what your certificate of insurance shows. NRMA’s private policy excludes business use that isn’t shown on the certificate, while Budget Direct sells separate levels for occasional business use and for business use.

Is driving to work business use?

Not under AAMI’s or Budget Direct’s private policies, which count travel between home and your regular place of work as private or commuting use.

Do I need commercial vehicle insurance for my ute?

Not by law: only CTP is compulsory, and it covers injuries to people, not your ute. What matters is whether your policy covers how you use the ute. Some private policies cover work use if it’s declared, and commercial vehicle policies are designed for vehicles used for business.

What if my insurer doesn’t know I use it for work?

It can refuse or reduce a claim. In a 2026 AFCA decision, a van insured for private and commuting use was used for deliveries each week, and AFCA upheld the insurer’s refusal to pay.

Does car insurance cover tools?

Some policies do, up to a limit: $1,500 on NRMA’s private comprehensive policy, $1,000 on Allianz’s commercial policy and $2,000 for personal effects and tools on CGU’s business policy. Theft usually needs forced entry into a locked ute or fitted toolbox, and AAMI’s and RACV’s private policies exclude tools of trade.

How much does ute insurance cost?

upcover puts commercial motor cover for a trade ute or van at $1,800 to $3,500 a year per vehicle, before GST, stamp duty and fees.

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Covers in this guide.

Our guides to what each cover generally does, what it costs and the rules that apply.

Business Motor Insurance Public Liability Insurance

Sources.

  1. Car Insurance Product Disclosure Statement, NRMA Insurance, 10 September 2023
  2. Comprehensive Car Insurance Product Disclosure Statement, AAMI, 18 September 2020
  3. Car Insurance Supplementary Product Disclosure Statement, Budget Direct (Auto & General), 14 November 2024
  4. Motor Insurance Product Disclosure Statement, RACV, 2 August 2022, with supplementary PDS of 13 July 2026
  5. Personal vs commercial vehicle insurance, Allianz, 21 October 2025
  6. What is CTP insurance?, Motor Accident Insurance Commission (Qld), 13 July 2026
  7. Determination 12-25-285291, AFCA, 31 March 2026
  8. Commercial Motor Vehicle Insurance PDS (POL124BA), Allianz, 10 September 2025
  9. Business Insurance PDS, Section 12 Commercial Motor Vehicles, CGU, 1 May 2025
  10. Commercial Motor Product Disclosure Statement, AAMI, 26 March 2024
  11. Determination 12-24-168901, AFCA, 27 August 2025
  12. Business Insurance Product Disclosure Statement, NRMA Insurance, 1 May 2025
  13. Determination 12-25-226066, AFCA, 22 September 2025
  14. Determination 12-00-1026719, AFCA, 30 April 2024
  15. How much does commercial motor and fleet insurance cost?, upcover, 7 August 2026