Are you looking for truck insurance? Then you’ve come to the right place! We’ve created a guide to help you learn more about this type of insurance coverage. We’ve included information on the type of truck insurance, how to find cheaper truck insurance and more!
Heavy Goods Vehicle Insurance
Heavy Goods Vehicle Insurance (HGV) is very similar to a car, van, and other types of vehicle coverage; however, it does mean you’ll need a specialized truck insurance policy. There are some things you’ll need to consider when shopping around for this type of insurance.
When searching for the right HGV policy, you may be asked to supply some contact and personal details, much as you would be for other types of vehicle insurance. You’ll also be asked questions about the nature of your business, the size of the fleet, the number of drivers, and more.
Some providers have requirements that are easy to understand, while others have more complicated requirements. If you run into a case of not understanding the details on truck policy, then it’s always a good idea to contact the insurance provider and speak with an experienced, knowledgeable agent who can help you find the right answers.
Before you can get a truck policy, you’ll first need to make sure that all drivers on the policy have the right type of professional driving license, which is called the Driver Certificate of Professional Competence (CPC).
In addition, you’ll also need to ensure that each driver has the appropriate operator’s license, which will vary depending on the vehicle’s weight, and more if the truck is used for transporting goods.
Types of Truck Insurance
There are basically three types of insurance coverage for HGVs. These include:
- Third-Party Only Truck Insurance (TPO): this is the minimum amount of insurance that is required by law for the drivers in the UK. It covers liability for injuries others, which includes passengers, damage to third party property, and liability while towing a caravan or trailer. This is the cheapest type of truck insurance available.
- Third-Party, Fire and Theft Truck Insurance: this type of insurance coverage is the same, but also protects against fire damage, theft of truck, and damage to the truck caused during a theft.
- Comprehensive Truck Insurance: this level of insurance protection covers everything the previous two types of truck insurance coverage, and includes: loss or damage to your truck, windscreen protection, personal effects, accidental damage, and medical expenses (to both you and third parties). Comprehensive truck insurance policies tend to be the most expensive, but also offer the most protection.
Before buying a policy, be sure to completely read through the terms and conditions. This way you’ll know exactly what’s covered or not. And you’ll have a chance to ask questions before making such an important purchase. You want to know exactly what is covered and not included, etc.
Telematics Truck Insurance
This type of insurance policy uses a black box installed on the truck, or a mobile app, to calculate insurance premiums based on the data recorded by the black box or app. The data records your driving habits and more, then this information is used by the insurance provider to determine the level of risk you may pose. The higher the risk you pose, the higher your premiums will be.
So, this is a great option for those who have good driving records and driving habits. If you’re determined to be a low risk, then you can save money with a lower premium.
Fleet insurance is used to protect every vehicle in the fleet that hauls goods. If you have a number of HGVs usually 3+ HGV’s, then insuring them as a fleet may be cheaper than insuring them individually.
Each insurer will have their own requirements as to what number of vehicles is considered a fleet. Some insurance providers allow two vehicles to be a fleet. You may also find that some providers place a cap on the number of trucks in the fleet; however, many allow a great number of trucks, even into the hundreds or more.
What do Insurers Class as an HGV?
This will depend on each individual insurer. There is no standard classification accepted by all insurers. Each HGV policy will vary, with some created especially to meet the needs of individual truck owners.
As an example, some truck owners are not allowed to use their vehicles for commercial purposes. These tend to be the owners of small, lighter trucks. In these cases, the owners may find that private van insurance provides them with the right level of coverage. On the other hand, those who own larger, heavier trucks may require specialized truck insurance policies.
Commercial Truck Insurance
Most HGV owners will use their vehicles for commercial purposes; HGV insurance was mainly created to meet the needs of these truck owners. There separate categories of business including:
- Carriage of own goods
- Carriage of goods for hire
- Reward: applies to drivers delivering to many addresses
- Haulage: these types of policies are mostly for drivers taking a single load to a drop point, which is located a long-distance away. This type of insurance may also cover courier work.
These types of coverage may be similar, but there are some subtle differences. You’ll need to pay close attention to the wording on the policies in order to understand exactly what’s covered.
Cover for Hazardous Goods & Locations
For HGVs used to carry hazardous goods, there are some exclusions that are included in many truck insurance policies.
For instance, there are insurance providers that cover the transport of hazardous materials, but you’ll need to pay close attention to what’s included in the terms and conditions of the policy. If you have any questions, then be sure to contact an insurance agent to talk about the coverage.
Other Types of Truck Insurance Coverage
- Because policies vary, you’ll find a wide range of options to consider, which may include:
- Employer’s liability insurance (which is legally required if you employ drivers and others)
- Public liability insurance
- Goods in transit coverage
- Personal accident and sickness insurance
- Truck breakdown cover
- Legal assistance cover
- Income protection insurance
- Commercial property coverage
- Uninsured loss recovery
How to Reduce the Cost of Truck Insurance?
There are some things that can help lower the cost of HGV insurance including:
- Consider fleet insurance if you have more than one vehicle
- Make sure all drivers are experienced and have clean records
- Make employed drivers responsible for their own excesses
- Install cameras that can help determine who is at fault in case of an accident
- Install security devices that fit the nature of the vehicle and the work
- Park and store vehicles in a safe location when they’re at the base
As you can see, truck insurance can be a complex topic! So, it pays to completely read through the terms and conditions of each policy, and then contact an insurance agent with any questions you may have. It’s important to go through this process carefully in order to find the right type and level insurance for your vehicles.