Beginners Guide to HGV Insurance

From the moment you embark on a haulage business, and through practically every stage of owning and operating a lorry, you are likely to be acutely aware of the need for HGV insurance.

Before clicking on the accept button of any online application, however, what might it be sensible to take into account?

Get specialist advice

· HGV insurance is likely to involve considerably more than standard motor insurance;

· with your very business at stake, you might want to know exactly what insurance cover you may need and just what products are available to meet that need;

· a specialist provider of HGV insurance is likely to be in the best position to match your needs to the insurance products available on the market – and, just as importantly, offer competitive quotes;

Level of insurance

· a minimum level of third party insurance, of course, is a legal requirement, just as for any other motor vehicle;

· this bare minimum of cover may only be suitable, however, if your lorry is so old and low in value that you are able to replace it with ease – more extensive cover is required if you want cover for loss or damage to the vehicle itself;

· two other levels of cover are available and commonly described as third party, fire and theft and comprehensive cover;

· whilst the former provides protection against fire and theft, you might want the further protection of the risk of accident damage to your HGV, offered by various forms of comprehensive HGV insurance – which might actually prove more cost effective than lesser forms of cover;


· as with any form of general insurance, the cover for your HGV may attract a compulsory excess – the first part of any claim for which you remain financially responsible;

· but you might also elect to assume a further voluntary excess – effectively an uninsured risk of loss or damage – in order to potentially gain a reduction in the insurance premiums you pay;

No claims discount

· one of the best routes to securing discounts on the cost of your current HGV insurance premium, however, may be through your insurer’s granting a no claims discount;

· just as the term suggests, this discount is based on your having made no claims on the insurance during the previous period of cover – a discount that might typically reach up to 60% off the cost of your premiums, depending on the number of years you have been claims free;

· although there is precious little you might do to alter your past record of insurance claims, there is nevertheless a clear incentive for doing all within your powers to avoid new claims;


· insurers are interested, of course, in the risks associated with the way in which your HGV is likely to be driven – and this, in turn, depends on the drivers your haulage business is likely to employ;

· if you are able to name every driver who is going to be driving your lorry, for instance, you stand to earn a significant discount in the price of your premiums;

· clearly, this is possible only if you employ a reasonable consistent body of drivers and may be less possible if you are employing on a casual or seasonal basis;

What you need

· one of the difficulties in choosing the appropriate HGV insurance for your business might lie in the difference between what you genuinely need and what comes as a standard element of any insurance cover;

· the better you are able to restrict cover to those elements of protection you actually need, the greater your chances of finding insurance cover that your consider to represent good value for money.

HGV insurance may be critical to the future health, prosperity and success of your haulage business, but there may be difficult decisions to make along the way. With the help of a specialist HGV insurance provider, those difficult decisions are more likely to result in the protection your business needs – at a price it might afford.