HGV insurance Compare quotes to find the best insurance policy for you
The average cost of HGV insurance in the UK for haulage use typically ranges from £1500 to £3000 per year. However, this cost can fluctuate significantly based on factors like the age and experience of drivers, the type of goods transported, and the vehicle’s value, security features, and location. Some sources suggest a wider range of £4000 to £8000, especially for new or inexperienced haulage companies.
Factors Affecting HGV Insurance Cost:
Driver Age and Experience:Older, more experienced drivers generally lead to lower premiums.
Type of Goods Transported:Some industries or goods might have higher risk profiles, impacting premiums.
Vehicle Age and Value:Older or higher-value vehicles may incur higher costs.
Security Features:Alarms, trackers, and locking systems can help reduce premiums.
Location and Operating Areas:The location where the truck is stored and the areas it operates in can affect risk.
Claims History:A history of claims can lead to higher premiums.
Cover Level:Different levels of coverage (third party only, comprehensive, etc.) will affect the price.
Number of Vehicles:Fleet insurance policies for multiple trucks might be more affordable.
Optional Extras:Additional cover options like goods in transit cover or legal cover can increase the price.
HGV Driver Shortages:HGV driver shortages can also impact costs due to the increased demand for drivers.
Brexit Changes:Brexit has also introduced some changes that can affect HGV insurance costs
Heavy goods vehicle insurance cover in the UK: a comprehensive guide
Heavy goods vehicle (HGV) insurance is a specialist form of commercial vehicle insurance designed to protect businesses and individuals operating lorries, trucks, and other large vehicles used for the transportation of goods in the UK. This type of lorry insurance is a legal requirement for anyone taking an HGV on the road, ensuring both compliance and financial protection in the event of unforeseen incidents. Without it, operating such vehicles commercially is illegal, and you could face significant penalties.
Types of HGV insurance cover
Just like standard vehicle insurance, HGV insurance offers different levels of protection, ranging from the legally mandated minimum to extensive coverage. Understanding these options is crucial for selecting the most appropriate HGV policy for your specific needs:
Third party only truck insurance: This is the minimum level of lorry insurance required by law in the UK. It provides cover for injury to other people (including passengers in your vehicle) and damage to their property in the event of an accident where you are at fault. This level of cover does not extend to damage to your own HGV.
Third party, fire and theft truck insurance: This policy includes all the benefits of third party only cover, with the addition of protection against fire damage to your vehicle and theft of your HGV.
Comprehensive HGV insurance: Providing the highest level of protection, comprehensive lorry insurance covers third party liability, fire, theft, and also includes cover for damage to your own vehicle, regardless of who is at fault. This option offers the most peace of mind for businesses heavily reliant on their HGVs.
Key cover elements and optional extras
Beyond the core levels of cover, HGV insurance policies can be further customized with various additional features and benefits:
Goods in Transit (GIT) insurance: A standard HGV insurance policy typically focuses on the vehicle itself and does not automatically cover the cargo being transported. Goods in Transit insurance is essential to protect the goods from loss or damage while they are being moved from one location to another. Options include coverage based on weight (e.g., RHA conditions per tonne) or an “all risks” basis, depending on the type and value of goods being carried.
Public liability coverage: This protects you against claims from third parties for injury or property damage caused by your HGV operations. It is crucial for avoiding costly legal disputes and safeguarding your business finances.
Employer’s liability insurance: If your business employs drivers or other staff, this is a legal requirement. It protects against compensation claims from employees who suffer work-related injuries or illnesses.
Roadside assistance/breakdown cover: This ensures you get specialist assistance if your HGV breaks down, including roadside repairs or recovery to a garage.
Legal expenses cover: In the event of a non-fault accident, this cover can help with legal costs and the fees of a solicitor to pursue uninsured losses like policy excess, loss of earnings, or injury claims.
European cover: If your operations involve cross-border transport within Europe, this is a vital addition to ensure you are covered outside the UK.
is often required to cover trailers on a specified or unspecified basis, ensuring coverage even when detached from the towing vehicle.
Windscreen cover: For repairs or replacement of windscreens damaged while your HGV is being used.
Personal accident cover: This provides compensation to drivers or passengers in the event of accidental injury or death.
Airside truck insurance: For businesses operating HGVs in restricted airside areas, such as airports, specialized airside truck insurance is available.
Other specialist cover: Policies can be tailored for various specific HGV uses, including under 7.5 tonne LGV insurance, classic HGV insurance, hazardous goods cover, gritter lorry insurance, and cover for specialist vehicles like low loaders or curtain-sided HGVs.
can vary significantly depending on a multitude of factors, with insurers considering a range of criteria when calculating premiums:
Vehicle type and value: The make, model, age, and value of your HGV directly influence the premium.
Driver age and experience: Younger, less experienced drivers or those with a poor driving history are likely to face higher premiums.
Claims history: A history of previous insurance claims will likely lead to higher premiums.
Mileage and usage: Higher mileage and more frequent usage, particularly for long distances or international routes, can increase premiums.
Type of goods carried: Transporting high-value, perishable, or hazardous goods will typically incur higher premiums due to the increased risk.
Security measures: Installing security features like alarms or tracking devices can potentially help reduce premiums.
Location and storage: Where the vehicle is kept overnight or when not in use can affect the premium, particularly in areas with higher crime rates.
Business size and fleet size: Businesses with multiple HGVs may benefit from HGV fleet insurance, which can sometimes offer cost savings compared to insuring vehicles individually.
Fleet insurance vs. single vehicle cover
For businesses operating more than one HGV, HGV fleet insurance offers a convenient and potentially more cost-effective alternative to insuring each vehicle separately. This type of policy covers multiple vehicles under a single agreement, simplifying administration and often providing discounts. The threshold for what constitutes a “fleet” can vary between insurers, but it can be as low as two vehicles.
Telematics and reducing premiums
Some HGV insurance policies incorporate telematics technology, often in the form of a black box or mobile app installed in the vehicle. This technology monitors driving behavior, including speed, braking, and routes taken. Telematics insurance can potentially lead to lower premiums for drivers demonstrating safe driving habits. It also offers benefits beyond cost savings, such as improved fleet efficiency through real-time location tracking and optimized resource allocation.
protects you from significant financial losses related to repairs, third-party claims, or legal expenses.
Business continuity: For businesses that rely on their HGVs for daily operations, comprehensive coverage provides peace of mind and helps minimize disruptions caused by unexpected events.
Peace of mind: Knowing you have adequate HGV cover allows you to focus on your business operations without constant worry about potential risks.
Choosing the right HGV insurance policy
Selecting the ideal HGV insurance policy requires careful consideration of your business needs and the specific risks you face. When comparing options, look beyond the initial premium and consider the breadth of cover offered, including standard features and potential exclusions. Utilizing the expertise of a specialist HGV insurance broker can be beneficial, as they can help you navigate the complexities of different policies and find tailored solutions to suit your individual circumstances. It’s crucial to ensure your chosen policy provides adequate protection for your vehicles, cargo, and liabilities, ensuring both legal compliance and long-term business security.
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