One of the many things you need to remember about car insurance in South Africa is that there is a difference between private use and business use. If you use your private car to visit clients or conduct your business, whether you are self-employed or work for an employer, you need to insure your car for business use, not private use. It is also called commercial use. Driving to and from your place of work is seen as private use, if not, we all would have to take out business insurance!

Business insurance premiums are higher than personal insurance as it is seen by the insurance companies to provide them with a greater risk. Indeed it may be true if you travel extensively for business as would be the case if you are doing delivery work or operate as a business sales representative. However, many professional people, such as medical doctors, feel this is unfair as their business travel may be limited and is usually not conducted during peak hours.

Talking to an insurance consultant may be a good idea. One company now offers car insurance to business users without the additional premium. But do not take chances; the short-term insurance ombudsman has warned that he cannot assist someone who took out inappropriate car insurance cover.