Beginner's Guide to Truck Insurance

Truck insurance comprehensively covers all damages to your fleet and protects you against any losses that might occur as a result. Truck operators make a substantial investment in their fleet, and therefore, it’s better for your business to get them protected.

It is a legal requirement for truck operators to have truck insurance when driving a vehicle on the road. The minimum cover is typically unlimited cover for third-party death or injury and a legal minimum cover of £1.2 million for third-party property damage.

Whether you run a logistics company, a construction firm, or a scaffolding company or are an owner-driver, you’re going to need truck insurance to protect your business and cover any damages caused to your trucks or any injury caused to a third party.

If you want to know more about commercial truck insurance – keep reading! 

Types of Truck Insurance Coverage

Just like when you’re driving a car, there are different types of insurance coverage in the UK. These levels also apply to the different levels of insurance for lorry drivers:

THIRD-PARTY ONLY (TPO) INSURANCE:

The most basic level of coverage is third-party vehicle insurance is a legal requirement for anyone driving a lorry in the UK. It only provides coverage for any damage caused by your truck to another vehicle, property or person in the event of a collision. It doesn’t cover any damages caused to your own truck.

THIRD-PARTY, FIRE AND THEFT (TPFT) INSURANCE:

If you cause an accident, third-party, fire and theft insures you against any damage caused to a third-party vehicle or property. It also covers injuries to passengers and other people. Plus, it also covers your own vehicle for fire damage and theft.

COMPREHENSIVE COVERAGE:

Comprehensive lorry insurance covers everything that TPO and TPFT insurance cover, as well as accidental damage caused to your own vehicle. Insurers usually have a list of approved repairers to ensure that your vehicle is repaired and back on the road as quickly as possible, thereby reducing any loss of income if an unfortunate accident may incur.

LEGAL PROTECTION COVER:

This is a very useful (and inexpensive) add-on to any policy. In the event of a non-fault accident, your Legal Protection insurers would provide, free of charge, legal help and cover solicitor’s fees to assist you in claiming back any uninsured losses, such as policy excess, loss of earnings, and claims for any injuries you may have sustained. They could also provide you with a replacement like-for-like vehicle whilst yours is being repaired.

It’s always important to check your insurance policy documents to make sure that you’re covered for everything you need.

Commercial Truck Insurance

When it comes to truck insurance in the UK, there are different types of insurance that you may want to look at. Commercial Truck Insurance can fall under a number of different brackets, for example, if the lorry is used for carrying your own goods or haulage.

It’s always worth making sure that your policy covers the specific use of your vehicle to prevent any future issues or result in losing out financially.

Goods in Transit Insurance

Goods in Transit insurance will cover goods within your vehicle whilst it is in transit. There are various types of cover including RHA, where the goods are insured up to limits of cover per tonne, typically £1300 or £5000, depending on the types of goods carried. Alternatives include All Risks and CMR. We’re here to guide you through the maze and come up with solutions to suit you.

Goods in transit insurance will prevent you from suffering serious financial losses and can be a vital asset for your business.

Fleet Insurance

Fleet insurance can be a great solution if your business operates two or more vehicles. By insuring all your trucks under a single policy, you can save money as well as have all your information in one place, making it easier to manage.

Public Liability Insurance

This type of insurance is there to protect you in the event of a claim if you are legally responsible for damage to third-party property or injuries to other people. It provides peace of mind at relatively little cost.

Employers Liability Insurance

If you have employees, then you are legally obliged to hold this cover. It insures you up to £10 million for claims made against you by employees for work-related injuries

Quite often, Public and Employer’s Liability cover can be combined within your Goods-in-Transit policy, thus saving you time and money. Of course, if yours is a more complex risk, then cover can be arranged separately.

In order to check that you’re getting the right sort of cover, it’s always worth getting in touch with the right fleet insurance brokers to find out more about public or employee liability coverage.

Do I Need an Operator’s Licence to get Truck Insurance?

Simply put, you need a truck operator’s licence if you use goods vehicles at 3.5 tonnes or above.

Depending on the sort of work you do with your lorry and the locations you travel, you will need a Standard National Licence, a Standard International Licence or a Restricted Licence. It’s always worth checking with VOSA, the issuing authority, to find out the exact licence you require to suit your business.

How Much Does Truck Insurance Cost?

Truck insurance varies in cost depending on the type of cover that you need, the weight and type of vehicles you are driving, how many trucks are in your fleet, and many other factors.

Whether the vehicles are used locally or nationally or if they go abroad, is another critical factor affecting the cost. Similarly, if your fleet passes through or goes to hazardous sites or carries hazardous loads, the insurance costs will be higher.

Moreover, insurance costs are also linked to the age, experience levels, and accident histories of your drivers. Fleet insurance brokers usually examine the profile of your drivers before sharing an estimate.

That being said, it’s always worth speaking to your truck insurance provider, to make sure you’re getting the right insurance for you at a premium that suits your needs.

*QUICK TIP*

If your trucks are equipped with camera systems, telematics devices, and other safety gadgets to constantly monitor and improve the driving behaviour of drivers, the cost of insuring the vehicles may be lower.

It’s also worth looking at getting fleet insurance, rather than individually insuring your vehicles, as it can get the costs down too!

Things to Consider When Choosing a Truck Insurance Policy

Typically, we find price is a significant factor to consider when you are choosing a truck insurance policy, but it’s always worth looking at the other factors to check you’re getting the right policy.

It’s always worth speaking directly to your insurance brokerage, as they will be best to advise you on whether you’re looking at the right policy. Truck insurance is more complex than it may at first seem, so it’s vitally important to choose a broker who has in-depth knowledge in this field.

If you’re looking for a reliable commercial vehicle insurance company, reach out to AVIS Insurance. We have been giving one-on-one expert advice on truck insurance, goods in transit insurance, fleet insurance, etc., for more than 35 years.

As a one-stop-shop for all small and large HGV operators in the UK, AVIS Insurance has an account manager dedicated to each client. If you want an online quote, click here.