These types of policies typically come in three levels of cover; Third Party only, Third Party, Fire & Theft or Comprehensive.
Do I need Commercial Vehicle Insurance?
Vehicle insurance, both residential and commercial, is a legal requirement in the UK.
Vehicle insurance is designed to protect drivers and typically covers your vehicle, the damage that you might cause to other vehicles, to the property of other drivers and to other motorists generally. Commercial vehicle insurance protects drivers using vehicles for business and work-related purposes.
It is a common misconception that standard personal vehicle insurance protects drivers for business too, but this isn’t the case. Standard policies don’t offer the same level of protection as commercial vehicle insurance and typically only cover you for social use and commuting to and from one place of work.
Commercial vehicle insurance covers a much wider range of uses, such as; travelling between different locations for work, if you drive employees or colleagues around, transporting tools – and anything else that you use the vehicle for on behalf of your business.
Driving without the correct insurance is against the law.
If you’re caught you could face consequences such as:
- Fixed penalty notice
- Points on driving licence
- An unlimited fine
- Disqualification from driving.
- The police also have the power to seize and destroy the vehicle, even if it doesn’t belong to you.
How much cover do I need?
There are three different levels of commercial vehicle insurance cover; Comprehensive, Third-Party (TP) and Third-Party, Fire & Theft.
Third-Party Insurance
Third Party Commercial Vehicle Insurance is a minimum level of cover required by law in the UK. Third Party insurance typically covers damage to others as a result of an accident that’s your fault. However, damage to your vehicle is not covered by third party car insurance. Nor does it cover theft, or damage caused by fire to your vehicle.
Third-Party, Fire & Theft
Third Party, Fire and Theft offers the same level of cover as Third Party Commercial Vehicle Insurance, but as the name suggests also covers damage to your vehicle caused by fire and theft.
Comprehensive
Comprehensive Commercial Vehicle Insurance offers a greater level of protection that Third-Party insurance. This type of policy generally covers motorists for accidental damage caused by you or others. It can also cover expenses arising from legal action brought against you following a road accident. Damage by fire or theft, vandalism, windscreen repair or replacement cover, and car stereo theft are also usually covered.
Commercial vs Personal Van Insurance
There are two types of insurance policies designed for vans; commercial and personal.
Commercial Van Insurance
Commercial Van Insurance is required if you use your van for any work-related use other than commuting. This can include transporting tools, driving employees or colleagues around or any other work-related use.
Personal Van Insurance
Private Van Insurance on the other hand is specifically designed for individuals using a van for social, domestic, or pleasure reasons only, typically with the exception of commuting to and from one place of work. For example, if you use your van for a hobby such as transporting a surf board, but also use it to drive to and from a single permanent place of work, private van insurance is suitable.
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Classifications of Commercial Vehicle Insurance
There are three types of classifications for commercial vehicle insurance; carriage of own goods, Carriage of goods for hire or reward and Haulage.
Carriage of own goods
This type of cover is designed for individuals that is use a commercial vehicle, such as a van, to transport business-related goods or tools. For example, if you’re a self-employed brick-layer or florist.
You’ll may also need this cover if you just use your van for commuting.
Carriage of goods for hire or reward
This is designed for individuals that use a commercial vehicle to transport goods in exchange for payment. For example, if you’re a fast-food delivery driver, or catalogue courier.
Haulage
Haulage cover is for drivers who use commercial vehicles to make long distance deliveries, usually to just one destination per job.
Different insurers have varying definitions for this cover and carriage of goods for hire and reward, so double check you’re getting the right cover for your job.
If your vehicle weighs more than 3.5 tonnes, you’ll need HGV insurance.
What information do I need to get a quote?
- Name
- Date of Birth
- Address
- Licence details
- Registration number
- Number of seats
- Body type
- Annual mileage
- Modification details
- Date of purchase
- Address the vehicle will be kept overnight
- Driver occupation
- Driving history
- Previous claim details (typically 5 years’ worth)
- Type of cover (Comprehensive, Third Party or Third Party Fire & Theft)
- Start date of policy
