What business use is my car covered for?
Our robust cover means it’s not the end of the world if you use your car for some business use. You’re still covered as long as it’s not being used for any of the below.
Key takeaways
- Initio vehicle insurance covers most business use unless the vehicle is being used for one of the specifically excluded activities.
- The policy does not cover vehicles used for ride-sharing, carrying fare-paying passengers, courier or delivery work, home servicing trades, carrying goods for financial reward (other than farming), motor trades, driver training, towing for reward or peer-to-peer vehicle hire.
- If your vehicle is being used for an excluded activity at the time of an incident, your initio policy will not respond and the claim will be declined.
- Damage to or replacement of vehicle signwriting is not covered.
- Most other business activities are covered, including occupations such as office professionals, property managers, property owners maintaining their own rentals, farmers and real estate agents.
- If your work falls within one of the excluded categories, you’ll need commercial vehicle insurance from a provider that offers this type of cover.
- Customers who are unsure whether their business use is covered are encouraged to contact initio for clarification.
Business use that is NOT covered:
Your car will not be covered if used for the following:
- Ride-sharing, or carrying fare-paying passengers such as a Taxi, or Uber.
- Courier or delivery business (including food delivery such as UberEats).
- In connection with a trade or servicing business that does any installation, maintenance, cleaning or repair work on homes.
- To carry goods or samples for financial gain or reward, as part of any business (apart from Farming)
- As part of any motor (or automotive) trade profession (such as a mechanic)
- Formal driver training or education.
- Towing for reward (e.g. to a tow another car)
- Car being hired out (e.g. a peer to peer hire)
If your car is used for any of the activities listed above, our policy is not suitable. We would recommend purchasing commercial cover – typically available through an insurance broker or commercial insurer.
What if I don’t usually use it for the above activities but that changes later?
Your vehicle won’t be covered at any time it’s used for any of the excluded activities listed above. If you’re involved in an accident while using the vehicle for any of those purposes, your initio policy won’t respond – and the claim would be declined.
Will my cover include damage to or replacement of the car’s signwriting?
No, our policy does not include cover for any vehicle signwriting.
So, is all other business use covered?
Yes! For any business activity not listed under the exclusions above, your car can be covered – even while performing that business task.
Our policy acts as a hybrid between private and commercial cover, designed to accommodate most other business uses.
Examples of covered occupations (not exhaustive):
- Office professionals visiting clients.
- Property managers driving to properties for inspections or viewings.
- Property Owners carrying out work on their own rentals
- Farmers using a ute for on- and off-farm activities to run their operations.
- Real estate agents or salespeople traveling for work.
Still unsure?
If you’re uncertain whether your business use is covered, get in touch with us – we’re here to help clarify!
Frequently asked questions
What if I start using my car for excluded business activities later?
Your vehicle won’t be covered while it is being used for an excluded activity. If your work changes, you should arrange insurance that is appropriate for that type of business use.
I’m a property manager. Is my vehicle covered?
Yes. The article lists property managers driving to inspections or viewings as an example of business use that is covered.
Other articles of interest
- How do I buy my first vehicle policy?
- How do I make changes to my vehicle policy?
- Car insurance basics
- Roadside assist for initio vehicle customers
Written by Megan Fisher. Initio’s Head of Marketing
Megan has been with initio since 2022 and creates customer-focused content that helps New Zealand homeowners and landlords understand insurance in plain English. She works closely with initio’s claims, customer support, and development teams to make sure content is accurate, useful, and easy to follow. She has more than 20 years of experience in marketing and product strategy.