Five million risking their motor insurance

LONDON (Reuters) - Five million workers are at risk of invalidating their car insurance by using their own vehicles for business use, a survey shows.

The poll of more than 1,700 people for insurance comparison Web site Gocompare.com found that these employees drive an average of 188 business miles per month, despite not being covered for business usage.

Private car policies typically provide cover for motorists driving to their work, but not for other work-related use, including driving to company sites other than their usual workplace.

The most common business journeys made in a private car are travelling to a training course (31 percent of those surveyed), going to the bank (25 percent), driving to another office (24 percent), travelling to meet clients or suppliers (23 percent) and attending company away-days (15 percent).

Hayley Parsons, managing director of Gocompare, said: "Less favourable tax treatment has seen a considerable number of employees opting out of company car schemes.

"Many of these workers now use their own vehicles for informal or ad-hoc company business."

She said extending motor insurance cover to include business use could be "relatively inexpensive", with some insurers not charging additional premiums.