As a tradie or handyman, your vehicle is more than just a way to get from one job to the next — it’s a core part of your business. Whether you’re transporting tools, materials or moving between jobs, the loss or damage of your work vehicle could bring your business to a halt. That’s why having the right insurance is just as important as having the right tools. While a standard comprehensive motor insurance policy might seem like enough, there are circumstances where a policy specifically intended for business use is essential. Let’s break down what you need to know to keep your business moving.

If you use a standard vehicle for your business — like a ute or van — you might assume your personal car insurance will cover you. However, it’s vital to tell your insurer or broker that your vehicle is used for business purposes, and clearly describe the type of work you do. Failing to disclose this could lead to denied claims or even cancellation of your policy.

Some vehicles and uses fall outside the scope of regular motor insurance. For example, if your vehicle is a hire car, taxi, or used for courier services (including food delivery), you may need a specialised policy. These vehicles face different risks and often require more tailored cover.

For tradies, it’s also important to consider whether your vehicle has been modified or customised. If you’ve installed roof racks, added signage, or made other changes, these could affect your insurance. Always declare modifications & accessories upfront to avoid possible issues if you need to make a claim.

Business use motor insurance generally offers two main areas of protection:

1. Damage, Theft, or Loss of Your Vehicle:
   Comprehensive policies typically cover accidental damage, destruction, or loss of your vehicle due to events like fire, flood, hail, malicious acts, accidents, or theft; and
2. Third-Party Property Damage:
   If you cause damage to someone else’s property—such as another vehicle, a fence, or even a building—your insurance can cover the repair or replacement costs.

It’s worth noting that rules around third-party injury insurance can vary depending on your state or territory, so check your local requirements.

When insuring your business vehicle, you may be given the choice between market value and agreed value:

• Market Value:
  This is the current value of your vehicle at the time of a claim, considering age, condition, and kilometres. This means you won’t know unless a claim occurs what the insurance company will offer you if your vehicle was deemed to be written off.
• Agreed Value:
  This is a fixed amount you and your insurer agree upon when you take out the policy. It may provide more certainty during the claims process if you’re required to replace your vehicle, especially if you’ve invested in modifications or accessories, or if you consider your vehicle is above average condition for a vehicle of the same make, model and age. You may, however, also have to provide evidence to the insurance company to justify the value you are seeking, and it may increase the cost of your policy.

Think carefully about which option suits your business best, and review your policy regularly as your vehicle’s value changes.

Tradies often customise their vehicles with extras like toolboxes, roof racks, tow bars, or special paint. These additions can be expensive, so it’s important to list them on your policy. If they’re not declared and you need to make a claim, you might be left out of pocket.

Here’s what to keep in mind:

• Accessories:
  Declare any non-standard accessories you’ve added, such as bull bars, tow bars or custom signage. Manufacturer-included features typically don’t need to be listed.
• Signwriting:
  Professionally applied signwriting can be costly to replace. Check whether your policy includes it as standard or if you need to specify it for coverage.
• Modifications:
  Any changes that alter your vehicle’s performance or appearance—like a lift kit or engine upgrade, or fixed tool box—should be declared. Some modifications may make your vehicle ineligible for certain policies, so always check with your insurer.

Some policy features can make a real difference for tradies:

• Excess-Free Windscreen Cover:
  If you’re often on the road, windscreen chips and cracks are almost inevitable. Some insurers offer excess-free windscreen replacement as standard, while others offer it as an optional extra. Consider whether this is important for your business, especially if you drive in areas with lots of road debris.
• Tool Cover:
  Policy’s may vary in relation to cover, for your assets that are left in your car, typically you will require a separate policy for your tools. To read more about insurance cover for your tools read more here
• Hire Vehicle After an Accident:
  If your work vehicle is off the road after an accident, some policies offer a hire vehicle to keep your business running while repairs are underway, this may also add to the cost of your premium.

For tradies, insuring your business vehicle isn’t just about meeting legal requirements — it’s about protecting your livelihood. The right policy may help you recover quickly from accidents, theft, or damage, and get your business back on track. Always review your cover, declare all business use, modifications, and accessories, and ask your Broker about optional extras that could make a difference. Taking the time to get your insurance right now may save you a lot of stress down the road.