HGV Fleet Insurance: Operator Licences, Tachographs and Cover Explained

Running a fleet of heavy goods vehicles is one of the most heavily regulated activities in UK road transport. Before a single lorry turns a wheel commercially, you need the right operator licence, compliant tachographs, correctly qualified drivers, and an insurance policy built specifically for HGV risk, not a standard commercial motor policy with a tick-box for “other vehicles.” Getting any one of those elements wrong can expose your business to six-figure fines, licence revocation, or uninsured liability claims that could end the operation entirely.

HGV fleet insurance sits at the intersection of motor insurance and transport compliance law. Underwriters want evidence that your O licence is in good standing, that your drivers hold the correct Category C or C+E entitlement, and that your tachograph records are clean. A fleet with strong compliance documentation will consistently achieve lower premiums than an equivalent fleet with gaps in its DVSA record, even if both have identical claims histories. This guide explains how the cover works, what it costs, how the operator licence affects your policy, and what the major compliance obligations mean for your premium.

Whether you run five 7.5-tonne rigids doing regional distribution, a mixed fleet of curtain-siders and flatbeds, or a national trunking operation with articulated 44-tonners, the principles are the same. Cover must match the weight, use, cargo, and operating radius of every vehicle on the fleet, and the policy must acknowledge the operator licence conditions under which you are authorised to carry goods.

What HGV fleet insurance actually covers

HGV fleet insurance is a commercial motor policy that covers two or more heavy goods vehicles under a single contract. The minimum legal requirement is third-party only cover, which satisfies the Road Traffic Act 1988 and protects against injury or property damage caused to others. In practice, the vast majority of HGV fleets are insured on a comprehensive basis, given the replacement value of a modern articulated tractor unit, which can exceed £130,000, and the cargo liability exposure attached to it.

A standard HGV fleet policy will provide cover for vehicles of any size from 3.5-tonne rigids up to 44-tonne articulated combinations, and can be written for carriage of own goods, hire and reward, or both. The policy typically includes third-party liability, fire, theft, and accidental damage to the insured vehicles. What it does not automatically include, and what hauliers frequently overlook, is goods in transit cover, trailer cover, and employers’ liability. These are usually separate policies or explicit extensions that must be specifically negotiated and documented.

Fleet policies for HGVs typically start from five vehicles, compared to two for car and van fleets, though some specialist insurers will write smaller truck fleets. The threshold matters because it affects how underwriters rate the risk: below five vehicles, many insurers treat each truck individually and aggregate the premiums, which removes much of the administrative and pricing efficiency that makes fleet cover valuable. Above five vehicles, a dedicated fleet underwriter will look at the portfolio as a whole, consider the operator’s compliance record, loss ratio history, and the spread of vehicle types and weights before producing a single blended rate.

The operator licence: what it is and why your insurer needs to see it

Any business using a goods vehicle over 3.5 tonnes gross vehicle weight for commercial purposes on a public road must hold a valid operator’s licence, issued by the Traffic Commissioner for the relevant traffic area. There are three types. A Restricted licence permits carriage of the operator’s own goods only, making it appropriate for a scaffolding contractor moving their own equipment or a manufacturer delivering their own products. A Standard National licence allows carriage of own goods and third-party goods for hire and reward within the UK, the standard requirement for most hauliers. A Standard International licence extends that permission to cross-border journeys, requiring the same financial standing and a transport manager holding the Certificate of Professional Competence (CPC) for international operations.

The financial standing requirements set by the Traffic Commissioner are a minimum of £8,000 for the first authorised vehicle and £4,450 for each additional vehicle on a Standard licence, evidenced through bank statements or credit facilities. For a fleet of ten HGVs that represents a minimum of £48,050 that must be demonstrably available at all times. Operators must also maintain an adequate operating centre, a yard where vehicles are parked and maintained, and comply with ongoing vehicle maintenance obligations, drivers’ hours records, and DVSA roadworthiness standards.

From an insurance perspective, the O licence number is a key underwriting data point. Insurers check licence standing with the Traffic Commissioner before binding cover, and a licence that is curtailed, suspended, or subject to a public inquiry will make placing cover significantly harder and more expensive. A licence revoked for repeated drivers’ hours breaches or maintenance failures may make the fleet uninsurable with mainstream markets entirely, pushing the operator into the specialist and Lloyd’s markets at substantially higher cost. This is why compliance and insurance strategy cannot be managed in isolation: good DVSA standing directly reduces your premium.

Source: GOV.UK — Being a goods vehicle operator. Applications processed through the Vehicle Operator Licensing (VOL) system; allow 7–9 weeks for a new licence.

Tachographs, drivers’ hours and what insurers look for

Every goods vehicle over 3.5 tonnes must be fitted with a tachograph — a device that records driving time, speed, rest periods, and periods of availability. Vehicles registered after 20 February 2024 must have a Smart Tachograph version 2 fitted, which records GPS location data and can transmit records to enforcement agencies wirelessly. Older vehicles on international routes were required to retrofit to Smart Tachograph version 2 by August 2025. The practical implication for fleet operators is that your entire fleet should be checked for compliance with the current tachograph generation, and any retrofit costs should be factored into fleet overheads.

The core drivers’ hours rules for UK domestic operations are: a maximum of 9 hours driving per day, extendable to 10 hours on no more than two days per week; a weekly maximum of 56 hours; no more than 90 hours across any two consecutive weeks; and a mandatory 45-minute break after every 4.5 hours of driving, which may be split into a 15-minute break followed by a 30-minute break. Daily rest must be at least 11 hours, though this may be reduced to 9 hours on up to three occasions between weekly rest periods. For international journeys from April 2025, AETR rules apply, broadly similar driving limits but with differences in rest period scheduling and a requirement to carry 56 days of tachograph records rather than 28.

Tachograph data must be downloaded and reviewed regularly, at minimum every 90 days for the vehicle unit and every 28 days for driver cards, and records must be retained for at least 12 months. Insurers reviewing a fleet submission will frequently ask for the most recent DVSA operator compliance risk score (OCRS) or Earned Recognition status. A clean tachograph record with no infringement notices is a meaningful positive underwriting factor; a history of drivers’ hours breaches, prohibition notices, or DVSA enforcement actions will increase the risk assessment and push premiums higher. DVSA Earned Recognition, the voluntary compliance scheme for operators who share real-time data with the agency, can actively reduce insurance premiums with some specialist HGV underwriters.

OCRS scores: the number every HGV fleet manager needs to understand

The Operator Compliance Risk Score (OCRS) is the DVSA’s internal rating system for every licensed HGV operator in the UK. Scores are generated from roadside inspection data, annual test results, and enforcement encounters, and are used by DVSA officers to prioritise which operators to stop and check. What most operators do not realise is that specialist HGV insurers use the same score, or ask directly about it, when calculating your premium. Your OCRS is one of the most financially consequential numbers in your business, and few comparison sites ever mention it.

Scores are split into two streams: Traffic (roadworthiness) and Compliance (drivers’ hours and tachographs). Each stream is rated Red, Amber, or Green. The colour determines how frequently the DVSA will target your vehicles at the roadside, and it directly shapes the risk appetite underwriters apply to your fleet at renewal. The table below shows what each band typically means for your insurance premium.

OCRS scores are updated monthly by the DVSA. The legal framework governing operator licensing is the Goods Vehicles (Licensing of Operators) Act 1995 — the primary legislation underwriters reference when assessing licence validity. Operators can monitor their score and apply for DVSA Earned Recognition to demonstrate real-time compliance to both the agency and their insurer.

How HGV fleet premiums are calculated

HGV fleet insurance is among the most complex commercial motor risks to underwrite, and premiums reflect that complexity. A five-vehicle fleet of 7.5-tonne rigids doing regional distribution with experienced drivers and a clean DVSA record might pay £1,800 to £2,400 per vehicle annually. A ten-vehicle fleet of 44-tonne articulated combinations on national trunking, with drivers under 25 and a poor claims history, could easily reach £4,500 to £6,000 per vehicle. The spread is wide because the variables are numerous.

The primary rating factors are vehicle weight and type (heavier and more specialist vehicles attract higher base rates), the geographical radius of operations (100-mile radius operators typically receive discounts versus national operators), cargo type (hazardous materials, temperature-controlled goods, and high-value loads all require specialist endorsements), driver profile (licence category, years of HGV experience, and any endorsements on the driving record), and claims history over the past five years presented as a loss ratio. Underwriters also consider whether the fleet operates any driver or named driver, with named driver restrictions generally producing lower premiums for stable, well-managed fleets where driver rosters do not change frequently.

The presence of an active telematics system is increasingly valued by specialist HGV underwriters. Real-time speed monitoring, harsh braking alerts, and fatigue detection technology reduce claim frequency, and insurers will reflect this in pricing, typically offering 5 to 15 percent premium reductions for fleets with verified telematics installed and data regularly reviewed by management. You can read more about how telematics affects fleet costs in our fleet telematics and insurance cost guide.

Premiums are indicative ranges for 2025/26 and will vary significantly based on individual risk factors. Fleets with telematics and DVSA Earned Recognition status may achieve 5–15% below the ranges shown.

Trailers, goods in transit, and specialist HGV cover extensions

The base HGV fleet policy covers the motor vehicles. It does not automatically cover trailers, and this is one of the most significant underinsurance gaps in the sector. An articulated trailer can be worth £25,000 to £60,000, and a refrigerated or curtain-sided trailer with specialist bodywork can exceed £80,000. Trailer cover must be specifically added, either as an extension to the motor fleet policy or as a standalone fleet trailer policy, and operators should confirm whether the policy covers trailers whilst attached, detached, or both. A trailer sitting at a customer’s depot overnight without a tractor unit attached requires cover in its own right.

Goods in transit (GIT) insurance is the other critical extension. The HGV motor policy insures the vehicle; GIT insurance covers the cargo. For hauliers operating under standard Road Haulage Association conditions of carriage, liability for goods in transit is limited to £1,300 per tonne of cargo unless a higher limit is agreed in the carriage contract. A single pallet of electronics or pharmaceutical goods can easily exceed that figure many times over. Operators carrying high-value, perishable, or hazardous loads should carry GIT cover matched to the maximum cargo value on any single load, not the average.

Operators transporting ADR goods (dangerous goods under the European Agreement concerning the International Carriage of Dangerous Goods by Road) require specialist endorsements on both the motor policy and GIT cover. Drivers must hold a valid ADR certificate for the class of goods being carried, and vehicles must comply with ADR equipment requirements including fire extinguishers, warning placards, and written instructions. Failing to declare ADR operations to your insurer at inception will give grounds for policy avoidance on any claim arising from a dangerous goods incident. This applies equally to fuel tankers, chemical tankers, and bulk powder operators.

HGV driver eligibility and licence requirements

To drive a rigid HGV between 3.5 and 32 tonnes, a driver must hold Category C entitlement on their licence. To drive an articulated lorry or any rigid with a trailer exceeding 750kg, Category C+E is required. Both categories require the driver to also hold a valid Driver CPC (Certificate of Professional Competence), obtained by passing the initial qualification tests, and maintained by completing 35 hours of periodic training every five years. Without a current Driver CPC, a driver cannot legally operate an HGV commercially, and an insurer who discovers that a claimant driver had a lapsed CPC has grounds to contest the claim.

Most HGV fleet policies impose a minimum driver age of 21, with many specialist insurers requiring drivers to be at least 25 for articulated vehicles. A common policy condition also requires a minimum of 12 months’ HGV licence holding, and some underwriters extend this to 24 months for fully loaded artic combinations. Drivers with endorsements on their licence, particularly serious conviction codes beginning with DR (drink), DD (dangerous driving), or TT (causing death), must be specifically disclosed to the insurer before being permitted to drive. Failure to disclose will give the insurer grounds to avoid paying a claim involving that driver.

It is best practice to conduct formal DVLA licence checks on all HGV drivers at least every six months, and to document the results. Some insurers require evidence of regular licence auditing as a policy condition, and fleets that can demonstrate a robust licence checking programme benefit from more favourable underwriting terms. For any driver policies, the obligation to verify licence validity falls on the employer: ignorance of a driver’s disqualification is not an acceptable defence against an insurer’s avoidance of a claim.

Reducing your HGV fleet insurance premium: what actually works

The most impactful single action a fleet operator can take to reduce their HGV insurance cost is to improve their DVSA compliance record. Underwriters rate compliance directly. An operator with zero prohibition notices in the past three years, a green OCRS score, and DVSA Earned Recognition status will routinely achieve premiums 15 to 25 percent below an equivalent fleet without that compliance evidence. The investment in proper maintenance systems, tachograph analysis software, and a genuinely active transport manager pays dividends at every renewal.

Telematics is the second most influential factor. Dashcam footage reduces disputed claims dramatically. A fleet where every incident is captured on video from multiple angles spends far less on fraudulent third-party claims, which is a significant cost driver in the HGV sector. Speed and braking data demonstrating consistently safe driving behaviour enables underwriters to price the fleet on its actual risk profile rather than the sector average. If you are not already running telematics, the payback period on the hardware and data costs is typically under 18 months through insurance savings alone. See our telematics guide for a full breakdown of the options.

Operating radius restrictions also offer meaningful savings. Fleets that operate entirely within a 100-mile radius of their base are consistently rated as lower risk than national operators, and insurers reflect this with discounts of 10 to 20 percent on the base rate. If your operation genuinely does not require national cover, do not accept it as a default on the policy. Similarly, overnight storage at a secured compound with CCTV and adequate lighting reduces theft risk and is a standard rating question. A well-secured yard in a low-risk postcode is preferable to street parking in a high-crime area, and the premium difference can be substantial. For more on cost reduction strategies, see our guide on reducing fleet insurance premiums.

HGVs in a mixed fleet: cars, vans and lorries on one policy

Many operators run fleets that include HGVs alongside cars and vans. A construction company might have six articulated tippers, ten Transit vans, and four company cars, all needing commercial motor cover. A mixed fleet policy places all vehicle types under a single contract with a single renewal date and a single insurer relationship. The administrative advantages are clear: one set of policy documentation, one claims contact, and one renewal negotiation covering every vehicle in the operation.

The underwriting reality of mixed fleets is that the HGVs will drive the premium. An insurer rating a combined fleet will apply their HGV risk assessment methodology to the entire submission, and the claims history across all vehicle types is pooled. A fleet with a strong HGV compliance record but a poor car claims history will find the HGV element cross-subsidising the car element. In some cases, it is more cost-effective to separate HGVs onto a dedicated truck fleet policy and insure the cars and vans under a separate commercial motor fleet. A specialist broker can model both options at renewal and present the most cost-effective structure for your specific vehicle mix and loss history.

Frequently asked questions