HGV Insurance Tips
If you run a haulage operation of one or more trucks, a minimum level of insurance is legally required for the vehicles to be driven on the road. But HGV insurance is likely to cover considerably more than the basic legal requirement and may represent a considerable proportion of your operating costs.
It may be helpful, therefore to consider what does heavy goods vehicle insurance cover â€“ and whether there are any tips on containing those costs:
- in common with other variations of motor insurance, cover for your HGV may involve one of three principal types of cover;
- as already mentioned, the most basic â€“ and the only type for which there is a legal obligation â€“ is third party insurance;
- third party cover indemnifies you against third party claims but offers no protection at all against damage to your HGV;
- to gain the most basic level of protection against such damage, you might alternatively choose third party, fire and theft cover â€“ which offers compensation for damage or loss caused as the result of fire or theft of the vehicle;
- comprehensive cover, of course, provides the fullest protection against accidental damage to the vehicle;
- although it might appear that the most basic level of cover has the lowest premiums, this is by no means always the case and you might want to check carefully, therefore, exactly what is covered in the level of insurance you choose;
- getting the appropriate cover for your HGV involves rather more than just picking an insurer at random from the Yellow Pages â€“ matching the particular needs of your haulage business to the various insurance products on the market may benefit from the input of a specialist insurer;
- these benefits may become especially attractive when you consider the discounts that may be available to the insured who helps shoulder some of the risks in operating an HGV;
- one of the most interesting current developments in the operation of heavy goods vehicles, for example, is in the area of telematics â€“ on board electronic information systems which may help to monitor everything from the way the driver is driving, to fuel efficiency, and evaluation of the risks and hazards encountered on the road;
- the website HGV UK, for example, reported in January 2015 a partnership set up between Applied Driving Techniques (ADT) and Intelligent Telematics to help HGV fleet operators use the new technology to comply with their duty of care, increase road safety and reduce costs of insurance;
- applied telematics may still be in their infancy as far as heavy goods vehicles are concerned, but insurers may be expected to pay increasing attention to their use as a way of minimising risks and therefore reducing the costs of premiums;
- even without the aid of modern technology you may still reduce the risks you are asking your insurer to assume by shouldering more of them yourself;
- traditionally, the way to do this is to accept a further voluntary excess on top of the compulsory excess likely to form part of your insurance contract â€“ staying alert to the fact that although the cost of insurance premiums may go down, the cost of making any claim is likely to go up (quite significantly);
- you might also gain a discount on premiums if all of your drivers are named drivers â€“ something that may pose no big problem if you have a more or less regular team but less so if you hire on an occasional or seasonal basis.
HGV insurance protects your vehicle against loss or damage but also helps to ensure that your business continues to operate as smoothly and with as little disruption as possible.