Commercial Vehicle Insurance: 5 Essential Policies To Know


Commercial vehicle insurance or business vehicle insurance is a legal requirement in the UK. It is your first line of protection if you are using your vehicle for work purposes.

Many people believe that their standard personal vehicle insurance will cover them if they are using their car or van for commercial activities. However, this is untrue, as standard protection policies fail to cover all the areas that commercial vehicle insurance do.

If you are considering getting commercial lorry insurance or business fleet insurance, you should familiarise yourself with different insurance policies. So here are 5 essential commercial vehicle insurance policies to know.

Third-party coverage

Third-party coverage is the cheapest and therefore, most basic form of commercial vehicle insurance. It is also a legal requirement in the UK, so you will need this coverage before taking your commercial vehicle onto roads.

It provides protection against damage caused to a third party during an accident. This policy also provides coverage against any injuries that may have occurred to the third party from the event.

However, third party coverage does not pay out for any damages that occurred to your own vehicle. If you are injured during an accident, you will have to pay for your own medical bills as well. However, this policy may cover the medical bills for any passengers in your vehicle who were injured during the accident.

You should note that this policy also won’t cover you if your vehicle is stolen or damaged in a fire.

Third-party fire and theft coverage

This form of coverage is a bit more comprehensive than the standard “third-party coverage”. It also tends to be more expensive, due to this reason.

Commercial vehicle third-party fire and theft offers the same coverage as standard third party coverage, but it also protects you against fires and theft.

If your vehicle is damaged during a fire, the cost of repairs will be covered. Similarly, this policy will replace your car if it is stolen. This policy also pays out if someone breaks into your car and attempts to steal it or steal the audio system.

Many people who use commercial vehicles opt for this coverage over standard third-party coverage due to the added protection it provides. After all, you never know when your car will be broken into or damaged.

Even the most careful drivers aren’t immune to becoming victims of theft. A failed theft attempt could also be costly if the thief damages the vehicle’s window and other fragile parts in the process.

Comprehensive coverage

As its name implies, comprehensive commercial vehicle insurance is the most extensive coverage you can find for your van. This covers damages or injuries to third parties in the event of an accident. It also covers any damage from fires or arson that occurs to your vehicle.

A comprehensive policy will also help pay for your medical bills if you are injured during any accidents.

This policy can also be used to replace your vehicle if it is stolen. Any damages from failed theft attempts may also be covered by this policy. Some insurance providers also offer to replace your vehicle’s audio system under this scheme, provided that it came pre-fitted with your vehicle

A comprehensive insurance plan also includes “windscreen coverage” which covers any damages to your windscreen, windows, or sunroof. A lot of commercial vans suffer windscreen damage at least once in their lifetime, so this policy may be useful in the future.

One of the most attractive features of this coverage for commercial truck owners and drivers is the “tools cover”. Under a comprehensive commercial vehicle insurance plan, any tools that are kept in your vehicle will be covered in the event that they are damaged or stolen.

This coverage is especially useful for tradesmen and other workers who transport tools in their commercial vehicle regularly. Being stuck without your tools can be debilitating for any business, so remember to get a comprehensive insurance policy for your work vehicle.

Goods in-transit insurance

Goods in-transit insurance provides theft, loss, and damage protection for items while they are being transported in your commercial vehicle. This may include protection for goods left in your vehicle overnight.

In addition to offering the aforementioned protections, this policy may also reimburse your business for any unexpected item delivery delays that occur due a mislabelled or incorrect delivery address.

Some comprehensive commercial vehicle insurance policies already include goods in-transit coverage, but you may need to purchase this coverage separately with certain insurance providers.

You should always inform your insurance company about the type of goods you are transporting and the frequency with which they are being moved. This will give you a better understanding of how much coverage you will actually receive.

HGV breakdown cover

Vehicle breakdowns can be costly and time consuming for any commercial vehicle owner. HGV breakdown cover will take care of the costs of electrical or mechanical breakdowns that occur on the road.

A good HGV policy will get your vehicle up and running again in a short amount of time, so you should go for insurance providers who offer this coverage.

As you can see, there are plenty of commercial vehicle insurance policies available for commercial vehicle owners. Some of these commercial lorry insurance options can be expensive, but the coverage they provide may be invaluable to your business.

If you own multiple commercial vehicles, you should opt for business fleet insurance. This provides coverage for multiple vehicles of different types at a reduced price.

So get in touch with a reputable commercial vehicle insurance provider such as Avis Insurance and get your business’s most valuable assets protected today.

Author Bio

Tony Jewitt is the director of Avis Insurance, a UK based commercial vehicle insurance providers. He established Avis Insurance in 1983 as general Insurance & mortgage brokers and started to focus completely on truck and haulage insurance markets from 2016. He has extensive experience in the insurance industry and is passionate about presenting his clients with customised solutions.