Commercial Vehicles

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Why Do I Need A Commercial Policy Rather Than Private Policy?

You are able to insure a van on a private car policy, if it is purely used for social domestic and pleasure purposes.   This does not include driving to even one place of work.

It can also cover you if you use your vehicle for hobbies ie: fishing, surfing, or similar.

If you use your van for anything which results in payment or income, it must be covered under a commercial vehicle policy.

Why Do I Need Commercial Vehicle Insurance?

There are many reasons to have commercial vehicle insurance.  The most important of these are your legal requirements.

  • Road Traffic Act 1989
    The first law regarding this was introduced in 1930 and most recently was updated in 1991.

    The Act requires that the motorist must either be Insured, have a security, or have made a specified deposit (£500,000) with the Accountant General of the Supreme Court, against their liability for injuries to others (including passengers) and for damage to other person’s property, resulting from use of a vehicle on the public road or in other public places.

    It is an offence to use a vehicle, or allow others to use it, without the insurance that satisfies the act whilst on the public highway (or public place section 143 (1) (a) RTA 1988 as amended 1991): however, no such legislation applies on private land.
  • Continuous Insurance Enforcement
    This law came into force in June 2011.

    It means that in the UK a vehicle must have a valid insurance policy if it has a tax disc, whether or not it is kept on public roads and whether or it is driven.

    If the vehicle is to be ‘laid up’ for whatever reason the tax disc must be surrendered and a SORN declaration completed to say that it is off the public roads.

What Or Who Can Be Covered

  • Vans
  • Pick-ups
  • Tippers
  • Flat beds
  • Double cabs
  • Trucks
  • Skip lorries
  • All other types of commercial vehicles
  • Young drivers
  • Poor claims history
  • High risk occupations
  • And many more …

Which Of The 3 Types Of Commercial Vehicle Insurance Do I Need?

  • Carriage of own goods
    This type of policy is exactly as it says!  This covers your belongings.  They can include your tools of the trade, personal belongings etc
  • Carriage of goods for hire and reward
    This type of policy is for delivery jobs.  It covers multiple drops, to many different locations. (i.e.: couriers)

    Please note, you will need to discuss whether separate cover is required for the actual goods you are carrying.  A Goods in Transit policy may be required.
  • Haulage
    This type of policy is also for delivery jobs.  However, the main difference is that haulage cover is based more on jobs with fixed delivery locations, with established clients.

    Again, you may need separate cover for the goods you are carrying with a Goods in Transit policy.

Types Of Cover Available

  • Third Party Only
    This is the most basic of covers available.  This Insurance covers any liability to third parties, but does not cover any other risks.
  • Third Party Fire & Theft
    This covers third party liabilities and also covers the vehicle owner against the destruction of the vehicle by fire (whether malicious or due to a vehicle fault) and the theft of the vehicle itself.  It may or may not cover vandalism.  This kind of Insurance and third party only, do not cover damage to the vehicle caused by the driver or other hazards.
  • Comprehensive
    This covers all of the above and damage caused to the vehicle caused by the driver themselves, as well as vandalism and other risks.

This is usually the most expensive type of insurance.  For valuable vehicles, many insurers only offer Comprehensive Insurance.

Supplementary / Complementary Covers Available

What Is The Importance Of Your Insurance Certificate

The Insurance Certificate or cover note issued by the Insurance Company is legal evidence that the vehicle specified on it is insured.

The law says that the driver may have to produce the document for inspection by an authorised person (i.e.: police).

It is an offence to not produce your Insurance Certificate immediately, or for confirmation of cover be confirmed by other means i.e.: The Police National Computer.

Drivers are no longer issued with a HORT/1 or as was commonly called a 7 day producer.  The offence is now applicable immediately.

Who Is The Motor Insurers’ Bureau?

The (MIB) compensates victims of road accidents caused by drivers who were either uninsured or untraceable.

It also contains details of all Insured vehicles in the country and acts as a means for Insurance Companies to share information.

Please give us a call, or request a call back, and we can discuss your requirements, and as always:

If we can’t give you the best price, we will always give the best advice.

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