There are various types of commercial vehicle insurance to be considered, including:

• Van insurance;
• Truck insurance;
• Goods in Transit for Couriers;
• Goods in Transit for Hauliers.

Whether you are just starting out in business and getting your first commercial vehicle insurance policy or renewing your existing commercial vehicle insurance you need to shop around for the most competitive of quotations. However, If you are starting out for your first commercial vehicle insurance you can sometimes use your private car’s No Claims Bonus at the quotation stage to help reduce your initial commercial vehicle insurance premiums.

Premiums can vary considerably for commercial vehicle insurance and this depends on a number of factors such as, the type of vehicle you have and the type of work your vehicles are involved in. A typical policy will insure vehicles up to 3.5 Tonnes, but others will go up to 7.5 Tonnes.

You should be able to combine protection from all major property and liability risks in one commercial vehicle package. If you are a larger company, you might want to take out a commercial package policy or you can customize your policy to meet any special risks you may have. These should be best discussed with an experienced commercial vehicle insurance broker or intermediary who knows the market well and can advise you as to the most appropriate policy and insurer that is sympathetic to you profession and business category.

If you are a one man and a van business up to several drivers and vehicles then you must first write down what you actually require so as to be sure of the cover you need and not what you think you want. When searching for the correct commercial vehicle insurance policy, you need to consider things such as if you will need cover for your vehicles abroad.

There are various aspects of commercial vehicle insurance policies available, including:

• Optional breakdown cover;
• 24 hour claims lines;
• Windscreen hotlines;
• Emergency help lines;
• Approved repairer networks;
• Replacement vehicles.

Here are some statistics showing why you need to have insurance (apart from it being a legal requirement):

There are over 250,000 road traffic accidents, with 300,000 casualties in the UK every year, and there is an estimate of between 25% and 33% of serious and fatal road accidents involving someone who was working at the time;

Over 47,000 light goods vehicles are stolen each year from British businesses, which equates to £152 million in lost assets, before you add up any additional costs, such as increased premiums, loss of earnings and alternative transport expenses.

These statistics make it imperitive for you to consider sufficient insurance that both covers you, your vehicles and drivers and your goods in transit as well as third party risks.

In the UK you must, by law, have at least third party insurance. This means you have insured yourself against injury to others and damage to their property. The next step up in basic insurance is third party, fire and theft cover.

Fully comprehensive insurance covers you against damage to your vehicle. The third party cover is usually unlimited for injury to other people but may have a limit for damage to their property.

Commercial Vehicles should not rely upon cheaper insurance policies such as third party only and you should consider the best levels of commercial vehicle insurance you can afford to purchase and with the option for instalments you can afford to budget for the higher levels of cover rather than taking cheaper options for your commercial vehicle insurance which may prove to be a bad decision if you have to make a claim and find your self and your business in jeopardy because of insufficient commercial vehicle insurance.

You must inform your insurer if you are going to use your vehicle for both private and businesses purposes. The insurer will ask questions such as:

• What goods do you carry?;
• How many drivers are to be covered?;
• How long do you use the vehicle for at a time?.

It may be possible to add occasional business use to your existing personal insurance policy if your business activities are part time and not the main use for your commercial activities.

If your vehicle’s main use is for business, you will require a commercial vehicle policy. Most businesses choose to have fully comprehensive cover and insure for any driver over the age of 25 years.

If you own more than five vehicles, a fleet policy may be arranged. The premiums will mainly be calculated on the claims experience of your fleet.

Read your policy wording carefully, as it will show all terms, conditions, limits and excesses. It’s no good after an accident to say you never knew what you was covered for or more importantly what your not covered for.

Its your responsibility to know what your Commercial Vehicle Insurance policy covers you for.