You are about to choose insurance for your commercial vehicle, but do you have everything you need to make the right call? HGV, panel van, van, minibus — every vehicle classed as commercial needs motor insurance. As a professional courier or the manager of a delivery fleet, protecting your vans is essential. But how do you find your way around the complicated world of insurance? In this article we take you through it step by step, so you can pick the commercial vehicle policy that fits your needs and your budget. Get ready to become an expert and to drive with peace of mind.
1. Pin down your needs
The first step in taking out insurance for a commercial vehicle is to work out exactly what your transport business needs. To do that, take into account:
- The number of commercial vehicles you need, and the number of drivers to be insured
- What you are going to use the vehicles for
- The budget you have
- The essential cover you want
- The value of the vehicle or of the fleet
Who has to take out commercial vehicle insurance?
Any person or business that owns or uses a commercial vehicle for professional purposes has to take out this insurance. That includes hauliers, obviously, but also tradespeople, retailers, contractors and other professionals who use a commercial vehicle in their day-to-day work.
How many commercial vehicles do you want to insure?
Another fundamental question to answer is how many vehicles you need to insure. If you have only one light commercial vehicle, a standard van policy will do. If you want to insure several, you are better off with a fleet policy.
Fleet motor insurance
A fleet motor policy becomes worthwhile for a professional with several commercial vehicles to insure in the company’s name. The usual threshold is a minimum of three vans, but check with each insurer to find out where their limit sits. The main advantage? A single contract covers all your business vehicles, that is, your whole fleet (every vehicle your organisation runs). The contract therefore carries the same cover for each vehicle and attracts a single premium. That applies to vans and ordinary cars alike. You can add a vehicle to the fleet by declaring it when it goes on the road, or in your annual declaration.
What about temporary insurance for a commercial vehicle?
Temporary insurance comes into play when you hire a commercial vehicle for your business. In that case, the hire company generally includes specific cover in the rental contract. By default, you, the hirer, get third-party liability cover. You can always widen the protection on the vehicle by paying for extra options, covering theft, fire or damage to the hired vehicle. Before you sign, we suggest looking for a policy dedicated to commercial vehicle hire. Many insurers offer temporary contracts running from 1 to 90 days. Here too, it pays to compare as many quotes as you can: prices and levels of cover vary widely across the market. Start with your business insurer for a quote, then compare it with other offers. Cover with good value for money is often out there. Basic temporary insurance for a commercial vehicle starts at around ten euros a day.
2. Understand the different types of commercial vehicle cover
What levels of cover are there?
Several levels of commercial vehicle cover exist, and the price varies with how much protection they give. Here are the three levels:
- Third-party insurance: the legal minimum, which covers third-party liability.
- Intermediate cover: also known as third party, fire and theft, this protects you if the vehicle is stolen or catches fire.
- Comprehensive insurance: the most expensive option, because it gives the fullest cover. You are covered for injury and damage you cause to yourself or to others, and you get a range of guarantees depending on the motor insurer you choose.
What specific cover does commercial vehicle insurance include?
The specific cover varies between insurers and between contracts. Some guarantees are commonly offered, though, to meet the particular needs of commercial vehicles:
- Third-party liability (RC) : compulsory cover for damage caused to others in an accident. It pays for repairs and for compensation in the event of injury or damage to property.
- Comprehensive cover: covers damage to your vehicle from an accident, theft, vandalism, fire, storm and so on. It gives fuller protection than third-party liability alone.
- Theft and attempted theft: protects your van against theft and attempted theft. If the vehicle is stolen, this can include reimbursement of its value.
- Glass cover: pays to repair or replace windows and windscreens when they break.
- Breakdown and recovery: in the event of a breakdown or accident, this covers roadside assistance, towing, getting the vehicle home and the loan of a replacement vehicle.
- Legal expenses cover: pays the legal costs of a dispute arising from use of the commercial vehicle, whether with a third party or with the authorities.
- Goods in transit: covers damage to the goods you are carrying in an accident, theft or fire.
- Specific conversions: for commercial vehicles fitted with specific equipment, this covers damage to that equipment. A tipper body, a tail lift, a fridge unit, for instance. Read more here.
It is worth remembering that specific cover varies between insurers and contracts. We strongly advise comparing offers and choosing the ones that best match your professional needs.
What does insurance for a commercial vehicle cost?
Many professionals are looking for affordable motor cover for their commercial vehicle. An exact price is hard to give: rates vary considerably from one insurer to another, even for a similar level of protection. So it is essential, particularly if you have several vehicles to insure, to get as many commercial vehicle insurance quotes as you can.
Insuring a van
On average, third-party cover for a van can be had on a modest budget, from around €10 a month depending on the model. For comprehensive cover, the minimum is around €20 a month.
Insuring a panel van
For a panel van, budget roughly €15 a month for third-party cover. If you go comprehensive, rates are close to €30 a month.
Insuring a lorry
For third-party cover, budget around €15 a month. With comprehensive, expect around €40 a month.
💡 WORTH KNOWING: Keep in mind that focusing only on the rates insurers quote is a mistake. We advise weighing up the cover offered and how well it fits your needs.
3. Compare insurers’ offers
To find the cheapest commercial vehicle insurance in 2023, you have two options: ask insurers for quotes, or use an online business motor insurance comparison site.
Requesting quotes
Most insurers let you run a commercial vehicle insurance simulation online, straight from their website. A personalised business motor quote usually takes a few minutes. The process is much the same by phone. Keep in mind, though, that requesting commercial vehicle quotes one by one online takes time: you have to give the same information every time — the details of the vehicle or fleet to be insured, the level of cover you want, and so on.
Comparison sites
A second way to compare insurers’ offers is to go through an online comparison site. One of the big advantages of this route is that a single form gives you a personalised selection of quotes for your commercial vehicle or vehicles. You save valuable time, and can end up with the contract that best fits your needs at the best price.
Your commercial vehicle is your ally on the road and, above all, in your business. Find everything there is to know about it in our complete guide, built to help you find the right partner for your business, weigh up financing and conversion options, and much more. 👉 Click here for free access to the guide.
