Business-Use Car Insurance — When Consumer Policies Stop Working

Consumer motor policies in NZ typically cover personal and incidental work use (commuting to one workplace, occasional work trips). They generally exclude or limit substantive business use — carrying paying passengers, transporting goods for hire, regular client-site visits.

If your business use exceeds occasional, you need either: (a) a commercial vehicle policy from the same insurer, (b) a specialist commercial motor policy via a broker (NZI, Vero, IAG commercial lines), or (c) a fleet policy if multiple vehicles.

Declaring business use accurately matters — undeclared business use is a leading reason for declined claims. If you're unsure where the line is, ask the insurer in writing.

Some occupations (real-estate agent, sales rep, courier) have established business-use rates with consumer insurers. Others (passenger transport, ride-share, delivery) almost always need a commercial policy.