When your car works for you, your insurer needs to know

For many South Africans, one car does everything. It gets you to the office. It takes the kids to school. It handles grocery runs and weekend outings. And somewhere in between, it may also help you earn a living.

You might use it to visit clients. Deliver products. Carry equipment. Or chase side -hustle opportunities after hours. But, many drivers don’t realise that this mix of personal and business use can put their insurance cover at risk.

“People often think that insurance is about what a car is, not how it’s used,” says Wynand van Vuuren, client experience partner at King Price Insurance. “However, usage is one of the first things insurers look at when a claim is assessed, and most insurers draw a clear line between personal and business use.”

Personal use covers everyday life, including driving between home and your regular workplace. Business use kicks in when the car becomes part of how you earn income. If your car helps you make money, even if it’s only occasionally, this may mean that you need to cover it for business use.

Why this risk is growing

For many households, a side-hustle is an essential source of additional income, and freelancers, gig workers and small business owners often rely on one car to do it all. But, while using one car for everything makes sense financially, many drivers don’t realise that ‘light’ or ‘informal’ business use must be disclosed.

The most common thinking sounds harmless enough. “I only use it for work sometimes”. “I’m not carrying goods.” “It’s still my personal car.”

Think about a florist who uses their car for personal reasons during the week, but delivers arrangements to weddings on weekends. Or consider a consultant who often drives to meet with clients in a car that’s insured for personal use. Now imagine that these cars are damaged in an accident, or stolen. The insurer may part-pay a claim, reject a claim entirely, or even cancel the policy, if the cars have been incorrectly insured.

How to protect yourself… And your car

The solution isn’t complicated, but it does require honesty and regular review. Start by checking your policy schedule and wording. Make sure that the description of use matches how your car fits into your life today and, if your work situation has changed, tell your insurer. If your car plays a role in earning income, check whether you need cover that reflects both personal and business use.

Van Vuuren says that most insurers’ approach is built on clarity and fair pricing based on real usage, with the aim being to help clients get cover that fits how they actually live and work: Rather have an honest conversation upfront than a painful one at claims stage. Being open about how you use your car helps protect you from nasty surprises later.”