Truck Insurance Guide: What it is, what it can cover, and how to save on truck and HGV insurance.
Truck insurance can be a complicated business. Which vehicles can be covered by truck insurance? What’s the difference between truck insurance and HGV insurance? What is HGV fleet insurance? Do I need an operator’s licence to get a truck insurance quote? And how can I get cheaper truck insurance are all questions we get asked on a regular basis.
To answer these and a truckload of other HGV insurance questions, we’ve put together this definitive guide to truck insurance. It’s been compiled by the Instatruck team who have over fifty years of truck insurance experience to their name. We hope it will prove useful, but if you’d like some personalised independent advice or a truck insurance quote, then please call us on 01332 320540 or contact us here.
What is truck insurance?
So, let’s start with the basics and the most frequently asked truck insurance question. What is truck insurance? Truck insurance, or HGV insurance as it’s also known – allows lorry owners to legally drive their vehicles on public roads. A flexible policy, it can cover everything from HGVs and refrigerated vehicles to low loaders and recovery trucks. Cover can also be extended to offer:
- Goods in transit insurance
- Public liability insurance
- Business interruption insurance
- Legal protection insurance – covers the cost of defending any legal action that is brough against you
- European insurance
- Truck and breakdown and recovery insurance
- HGV fleet insurance – for those with two or more trucks in need of cover
- Loss of license – if you lose your licence for a period, loss of licence cover will compensate you for an agreed period until you can get it back
- Employers’ liability insurance – a legal requirement if you have any staff
- Hazardous goods cover – in case you are carrying things such as chemicals
- Goods in storage insurance
- Like-for-like replacement for non-fault incidents
- Deterioration of goods insurance
- Misfuelling
- Debris removal – should your cargo spill onto the road, this will cover the cost of clearing it away
What types of truck insurance are there?
In common with most other forms of motor insurance, truck and HGV insurance offers three basic levels of cover:
- Third-party – this is the minimum legal requirement and will ensure that you are covered should you damage someone else’s vehicle if the accident is your fault.
- Third-party, fire, and theft – this will make sure that you are covered should you damage someone else’s vehicle if the accident is your fault, or if a truck is accidentally destroyed by fire or stolen.
- Fully comprehensive – provides the same cover as third-party, fire, and theft but offers the added protection that if an incident is your fault, then repairs to your vehicle will be covered. It will also cover personal injury to your driver.
Which is right for you, is up to you, but as a general rule, if your truck is worth more than £10,000, then you will probably want to have comprehensive cover.
On top of that, you can choose who can drive your trucks:
- Named driver – only people who are specified on the policy.
- Any driver – anyone over the age of 18. These are usually more expensive but are convenient if you have multiple drivers and a fleet of trucks.
In either case, drivers will need an HGV license to drive a lorry over 3.5 tonnes and have kept their licence valid by taking their test every five years. If drivers are aged 65 and over, they must take their test every year to keep their licences.
What type of vehicles can truck insurance cover?
There are a surprising number of vehicles can be insured on a truck policy, for example:
- Heavy goods vehicles over 3.5 tonnes up to 100 tonnes
- Bulk carriers
- Electric and hybrid trucks
- Low loaders
- Flatbeds (with or without lifting equipment)
- Horseboxes
- Tankers
- Breakdown trucks
- Skip carrier
- Tippers
- Gritter lorries
- Curtain side lorries
- Cement mixers
- Refrigerated and insulated lorries and vans
- Cement mixers
- Bulk carriers
- Pantechnicon (removal vans)
- Refrigerated and insulated lorries and vans
Which businesses can get truck insurance?
Thanks to its flexibility and the option of adding policy options such as goods in transit and employers’ liability insurance, truck and HGV insurance can be taken out by:
- Haulage firms
- Removals firms
- Logistics businesses
- Delivery companies
- Owner-drivers
- Construction firms
- Agricultural businesses
- Skip hire firms with skip lorries
- Low loader owners
- Vehicle transporter operators
Basically, if you or your business has one or more HGV, then truck insurance is suitable for you.
Why do I need truck insurance?
Aside from it being a legal requirement to have truck insurance if you want to drive a lorry or HGV on public roads, there are other good reasons for getting truck insurance. These include:
- Protecting loads from loss – if the goods you’re carrying are lost, damaged, or stolen you could be held liable. Having goods in transit insurance will protect you financially should something happen to your load.
- Protection from legal action from a member of the public – if one of your drivers accidentally damages someone’s property or injures someone, you can be sued for compensation. If you have public liability insurance as part of your truck or HGV insurance, you’ll be covered for any pay-out.
- Business interruption cover – say there’s a fire at your yard and your haulage business can’t operate, could it survive? With no income coming and bills mounting up, would you have the financial reserves to keep going? A recent report from the Association of British Insurers suggested it can take up to two years for a business to recover from a disaster. Business interruption insurance can provide you with an income until your firm gets back to its previous level of trading. While business interruption policies typically cover a company for a year, many now offer cover for up to two years.
- If you have any employees, you need employers’ liability insurance – employers’ liability insurance – EL insurance as it’s also known – protects employers from compensation claims from their employees should they be sued for loss or injury at work. If you have any employees, be they full-time, part-time, or contracted, then having EL cover of at least £5m is a legal requirement.
How much does truck insurance cost?
Alongside vehicles, fuel, road tax, and staff, truck insurance is one of the biggest costs a haulage or logistics business faces each year. At Instatruck we offer our clients a bespoke service based on their needs, so there’s no simple answer to how much truck insurance costs. What we can say is that your truck insurance quote will be based on things like:
- The size of your business – and the number of HGVs you have
- The age of your drivers – younger drivers will likely cost you more to insure as will those over the age of 65
- The type of cargo you are carrying – hazardous goods, for example, are likely to increase your premiums
- The size of the trucks you have
- The level of cover you want – i.e., third-party, third-party, fire and theft, or fully comprehensive
- The distances you travel – the further you go on a single route, the higher your chances of an incident
- The age of your vehicles
- The type of vehicles you are operating
- Whether you operate in Europe
- Your claims history – fewer claims and a higher no-claims bonus will mean lower premiums
- Whether you want to add on extras – such as public liability insurance, breakdown and recovery insurance, or goods in transit insurance
- Your business’s postcode
- Where your trucks are stored and the level of security at your yard
- Whether you have a telematics system installed
Insurers calculate premiums on the basis of risk and the likelihood of you making a claim. With truck and HGV owners often doing high mileage carrying valuable loads, there’s a lot for them to consider. When looking for affordable truck insurance, it’s worth talking to an independent truck insurance broker such as Instatruck. Our friendly team of experienced specialists will be able to give you all the help you need to get the cover you need, and, crucially, help you get cheaper truck insurance. Speaking of which…
How can I get cheaper truck insurance?
In the last 12 months motor insurance prices have risen by 25% and will go up by a further 10% in 2024 according to consulting firm, EY. With fuel prices high, ongoing driver shortages forcing up wages, and inflation a problem, so more and more owners are looking for cheaper truck insurance.
Happily, there are some easy ways to save on HGV and truck insurance such as:
- Use an independent broker – an independent insurance broker such as Instatruck – that is one that’s not tied to a particular insurer – can access a range of policies and do the shopping around for you. They will also be able to look at your cover and find ways you can cut costs by, for example, lowering indemnity limits or removing policy elements you don’t need
- Increase your excess – if you have a good (low) claims record, then raising your excess – the amount you pay in the event of a claim – can be a good way to get cheaper truck insurance
- Improve your trucks’ security – storing them in locked yard when not in use, fitting GPS trackers to all your vehicles and ant-theft devices such as internal cameras, can all help reduce your premiums. HGV thefts are on the rise in the UK with the DVLA reporting a 5% increase in 2023, so anything you can do to make them more secure is a good idea
- Fit a dashcam – dashcams can be used to prove liability in the event of an accident. Ideally, you want one with at least a 1080-pixel resolution as the resulting footage will be clear enough to be useful
- Build up your no claims discount – if you can avoid making small claims – something that’s especially wise if you’ve raised your excess – and build up your no claims bonus, that will help you get cheaper truck insurance. You should also ask your broker about longer no claims periods. Typically these are set at five years, but some insurers will offer no claims periods of seven or even nine years
- Carry out a risk assessment – look at the risks you’re running, e.g. the type of loads you’re carrying, whether your clients expect you to have goods in transit or deterioration of goods insurance, if you have specialist vehicles such as low loaders or vehicle transporters, and if you need employers liability insurance. Take this to your insurance broker and they can do a thorough assessment of your needs and may be able to reduce the costs of cover
- Consider who you are covering – any driver policies are convenient, but they can also push your premiums. If you have a named driver policy, see if you can limit the number of people who are named on it, and try and avoid adding young and old drivers, and ones with poor claims records
- Invest in driving training – HGV drivers are some of the most qualified on the road. Getting a Driver Certificate of Professional Competence (CPC) requires passing five tests and taking 35 hours of ongoing training every five years to remain qualified. That said, some insurers will offer discounts for drivers who have passed additional advanced HGV training such as defensive driving
- Get an HGV fleet insurance policy – if you have two or more trucks then get an HGV fleet insurance quote. Truck fleet insurance can reduce your per-truck insurance costs, gives you one policy to renew and maintain, and gives you one insurance broker to contact in the event of a claim
- Pay annually – while paying by monthly instalments can be good for cashflow, with interest rates having risen, we’re seeing more and more truck owners opting to pay annually to avoid interest payments
- Get a telematics truck insurance quote – some policies require you to install a black box or a mobile phone app in your HGVs to calculate premiums based on the nature of the driver and the standard of driving. It’s very popular with some commercial fleets, and it can be used to monitor the performance of different drivers.
Do I need an operator’s licence to get truck insurance?
The short answer to this is yes, you’ll need an operator’s licence if you want to carry goods in connection with your trade or business – that’s the law in the UK and the EU. As is so often the case, however, there are details and exceptions to this rule. You need one if:
- You have a truck, lorry, HGV, or any other vehicle that weighs more than 3.5 tonnes and you are using it to carry ‘goods or burden’ (stuff other than passengers in other words) that are connected with your business or your trade. Even if you use your vehicle for this purpose for a short period of time – as part of seasonal work, such as bringing in a harvest – or even for one day, you still need to have an operator’s licence
- Your truck, lorry, van or other type of vehicle has an unladen weight of more than 1,525 kg. The Department of Transport (DoT) defines an unladen weight as the weight of the vehicle when it’s not carrying any passengers, goods or other items. It does include the body and all parts normally used with the vehicle or trailer when it’s used on the road, but it doesn’t include any fuel or batteries if it’s an electrically powered vehicle
There are also three different types of operator’s licence and these vary according to the sort of work you will be doing in your truck, where you transport these goods to and from, and who you do it for. These different types are:
· A standard national – allows you to carry your own goods in the UK and internationally and other people’s goods in the UK. It also lets you take loaded trailers to and from ports within the UK as part of an international journey, just as long as your vehicles don’t leave the country
· A standard International – allows you to can carry your own goods and other people’s goods, both in the UK and on international journeys. Having one of these qualifies you to request so-called ‘Community Licences’* which give you the freedom to:
- Make trips between all EU member countries
- Transit traffic through EU member countries
- Undertake ‘cabotage’ jobs. Cabotage is the haulage of goods for hire or reward in one EU member state by a vehicle registered in a different member state
- A restricted licence – this restricts your activities; specifically, it will allow you to transport your own goods, but not other people’s goods
Operator’s licences don’t last forever and you will need to renew it every five years. The fees for this are as follows:
· Application for a goods vehicle operator licence | £257 |
· Application for an interim licence | £68 |
· Issue of your full vehicle operator licence | £401 |
· Renewal (‘continuation’) fee paid every 5 years | £401 |
You don’t need an operator’s licence for your truck if:
- Your vehicle was first used before 1977
- Your vehicle has an unladen weight of 1,525 kilograms or less
- Your vehicle has a maximum gross plated weight of over 3,500 kilograms
- Your vehicle has been using public roads for less than 6 miles a week whilst moving between private premises belonging to the same person as the vehicle (if the vehicle’s used for excavation or demolition it doesn’t matter who it belongs to)
- Your vehicle is being used on trade plates
- Your vehicle is a passenger-carrying vehicle such as a bus or a coach
For practical purposes, if you want to use your truck for commercial purposes and want a truck insurance policy, you will need an operator’s licence.
What is haulage insurance?
Haulage insurance designed specifically for businesses and haulage contractors who move large volumes of other people’s goods to a single destination for a fee. Owing to the nature of haulage services and the significant amount of goods they move, vehicles such as trucks and HGVs are often operators’ greatest assets. Haulage Insurance therefore protects owners against the risks such as theft, accident, loss and damage while they are being moved.
What is goods in transit cover for trucks?
If you’re transporting goods, you’ll want to make sure they are protected from common risks such as theft, loss, or damage. This is where HGV goods in transit insurance – GiT insurance as it’s also known comes in. Goods in transit insurance for HGVs is a little more complex. Given the distances involved, because some clients may also want you to temporarily stored while in transit, and as chilled or frozen goods may be being moved, there are different types of goods in transit insurance for hauliers, including:
- RHA conditions cover – this limits your liability to the RHA’s conditions of carriage. The main features of the RHA’s 2020 conditions are:
- There is a limit of £1,300 per tonne on the gross goods lost, or misdelivered – you can opt for a higher limit, but you will need to agree that with your insurer
- Claims for other losses, such as indirect or consequential, shall not exceed the carriage fee
- Conditions are available only to RHA members
- Full responsibility – if you’re not hauling to any contractual conditions then full responsibility cover offers limits per load starting as low as £5,000.
- Convention on the Contract for the International Carriage of Goods by Road (CMR) – if you’re hauling internationally, you may need your GIT policy to protect you against liability that attaches under the CMR convention or by contract when the convention has legally ended. This can apply even if you are only responsible for the UK leg of the journey.
- Deterioration of goods insurance – if you are carrying goods that are temperature or humidity-controlled, this will protect you financially should they be lost or damaged owing to a failure of the chiller unit.
Does truck insurance cover trailers?
Yes, trailers can be included on your truck insurance policy, but you need to let your insurer know that you are planning to use them. They will usually be covered on either a:
- Specified basis – so specific ones that are identified by their make, model, and/or their serial number
- Unspecified basis – this includes trailers that belong to clients whose goods your are moving or ones that are hired or borrowed. Trailers insured on unspecified basis are only covered while being towed or temporarily detached for unloading, cleaning, attaching to a different truck, etc. A trailer left in a layby overnight would not be covered by this policy
Can I transfer my no claims bonus from another insurance company?
Yes, provided the no claims bonus was earned in the UK, then it can be transferred from one insurance company to another. This is important as your no claims bonus can make a significant difference to your truck insurance quote. We’ve seen cases where a no claims bonus can amount to getting discount of up to 65%.
If you’re looking to get truck insurance for the first time, then you may be able to transfer your no claims bonus from another commercial vehicle such as a van. This is very much dependent on the insurer though, so you will need to check with your broker first.
Can I have breakdown and recovery included in my policy?
Yes. Some insurers include breakdown and recovery as a standard option on their truck insurance policies, others make it an optional extra. Either way, we’d recommend you have it as part of your cover. Not only can HGV breakdown cost a significant amount, having it in place can also speed up your recovery, cutting downtime and reducing service disruption.
Are there any additional policies will I should consider with my truck insurance?
Yes, there are a number of them, common ones include:
- Public liability insurance
- Legal insurance
- Employers’ liability insurance – a legal requirement if you have employees
- Goods in transit insurance
- Property insurance – if you have a yard or offices then this is important
- Breakdown and recovery insurance
- Airside insurance if you are working at airport
How old do I have to be to get HGV insurance?
While you can get an HGV licence at the age of 18, you’ll find many insurers will only offer cover to drivers aged 25 years old and older. While this isn’t universal, getting cover for younger drivers can be difficult and expensive. If you’d like to know about getting HGV insurance for young drivers, please contact the Instratruck team on 01332 320540 and we’ll be happy to help.
Do I need insurance if my truck is not in use?
Yes, you’ll need to insure your HGV even if it’s not being used unless registered as off the road with a Statutory Off Road Notification (SORN).
Can I get private HGV insurance?
Yes. Some HGV owners don’t use them commercially – it may be a vintage truck that an enthusiast has or a Class A or Class B motorhome which, from the DVLA’s perspective owing to their weight – are classed as HGVs.
Does what I transport make a difference to my truck insurance?
Yes, very much so. Insurers will want to know what you’re carrying and some may make exclude things such as hazardous products or live animals. Transporting frozen or chilled goods brings risks associated with perishability, and high-risk, high-value goods may require specialist cover. These risks aren’t a problem for Instatruck as we have relationships with underwriters that can deal with even the most challenging loads.
Can I get insurance for a rented or leased truck?
Yes, but leased and rented trucks need fully comprehensive truck insurance. When arranging cover you must provide your insurance broker with the following information:
- The hirer obtaining finance must be the main policyholder on the insurance certificate
- That the truck is a leased vehicle
- That the registered owner and keeper of the vehicle is the finance provider
What is HGV fleet insurance?
HGV fleet insurance, or truck fleet insurance as it’s also known, is a specialist form of cover designed for owners of two or more trucks. It’s a great way for businesses –hauliers, logistics firms, or delivery companies – to get flexible, affordable cover for multiple trucks.
Can you get electric truck insurance?
Yes, electric truck insurance or EV truck insurance as it’s also known, is becoming more popular as the number of electric trucks on the road rises. At present, electric HGV insurance tends to be more expensive than for diesel vehicles. According to the Association of British Insurers, this is because they take 14% longer to repair, and the vehicles cost more. We’ve seen a similar situation with electric cars and electric fleet insurance, but as these become the norm so, we’re expecting to see electric car insurance quotes fall in line with traditionally powered vehicles.
Can I get insurance for a truck used for food delivery?
Yes, you can get truck insurance for refrigerated lorries, be they carrying chilled or frozen foods.
What documents do I need to drive a truck abroad?
There’s a lot of guidance and details of the various exceptions that driving between countries on the Gov.uk website, but the most important ones you’ll need are:
- The vehicle and trailer’s registration documents – these can be either your vehicle log book(V5C), if you have one or a VE103 to show you’re allowed to use a hired or leased vehicle abroad
- Certificates for any specialist approvals the vehicle has
- A goods vehicle operator’s licence disc
- Licences or permits needed for the journey – such as a Green Card
- Your trailer and truck insurance documents
- A UK sticker
- If you’re carrying specialist cargo such as dangerous goods, perishable foods, or have sealed load compartments for quicker border crossings under the TIP system, you’ll need extra documentation.
Can I get truck insurance to drive a truck outside of Europe?
Yes, but you will need specialist cover, and you may also need specific documentation – a Green Card – to prove you have insurance. Countries that currently demand a Green Card as proof of insurance include:
- Albania
- Azerbaijan
- Belarus
- Iran
- Israel
- Moldova
- Morocco
- Russia
- Tunisia
- Turkey
- Ukraine
You do not need a green card to drive in the EU (including Ireland), Andorra, Bosnia and Herzegovina, Iceland, Liechtenstein, Norway, Serbia, or Switzerland.
What is hazardous goods vehicle insurance?
If you’re carrying hazardous goods such as chemicals, explosives, or toxic materials, then you need hazardous goods cover as part of your truck insurance. Standard truck and HGV policies may not cover you for carriage of such loads. Specialist cover that considers the issues surrounding such loads spilling is required, and if you move hazardous goods without proper cover and there’s a problem, you may find your insurance has been invalidated.
If you’re a haulier looking to carry hazardous goods, you may struggle to find cover as many insurers will specifically exclude this. The Instatruck team may be able to help find you cover, so please call us on 01332 320 540.
Is roadside assistance included in truck insurance?
That depends on the insurer and the policy you take out. So insurers do offer truck breakdown and recovery insurance as part of their cover, others offer it as an optional add-on.
How does truck insurance work in case of an accident?
Truck insurance works in much the same way as any other form of motor vehicle insurance following an accident. It will be deemed a fault or a non-fault claim, depending on the circumstances. A fault claim is when you are either considered to be to blame for an accident or your insurer cannot recover their costs from someone else. A non-fault claim is when you’re involved in an accident that you aren’t to blame for. This means that your insurer can recover the full cost of the claim from the person at fault’s insurance company. Depending on these circumstances and your level of cover a payment may be made.
How does the age of the truck affect insurance premiums?
New trucks are likely to be worth more and will cost more to insure. Older trucks will usually be less valuable, but they may not be as safe and are more likely to breakdown so may be seen as riskier.
Do I need insurance if my truck is stored on private property?
Yes, unless your truck is registered as off the road with a Statutory Off Road Notification (SORN) it will need to insured.
Can I get truck insurance if I have a poor claims record?
Yes, but it may prove tricky, and your premiums will be higher. Some insurers will provide cover to drivers with poor claims records and even to those with convictions and driving bans.
Are discounts available for truck insurance?
You can get discounts of up to 70% on truck insurance if you have the full nine years of no-claims discount to apply. Other ways of getting cheaper truck insurance include shopping around and using an independent insurance broker such as Instratruck for your truck insurance quote.
Can I get temporary truck or HGV insurance?
Yes, you can get policies that last a day or up to twenty-eight days or longer, depending on your needs.
What documents do I need to get truck insurance?
As a minimum, you will need your HGV license, your operator’s licence, proof of the vehicle being taxed, and evidence of your no-claims bonus if you have one.
Can I cancel my truck insurance at any time?
Yes, and depending on the terms of your policy you may receive a refund for any remaining time on the policy – typically whole months – or you may have to pay a cancellation fee.
How do I renew my truck or HGV insurance?
Contact your broker in good time – a few weeks in advance of renewal – and let them know of any changes. If you’re not entirely happy with their quote, then contact one or two more for comparative quotes or use a truck insurance comparison service such as Instatruck.
How long does it take to arrange truck insurance?
That will depend on the complexity of your needs. If you have a single truck with your existing broker and have made no claims or changes, it can be wrapped up in a few days. If, however, you need HGV fleet insurance, have made claims, or have significant changes to your requirements, then it may take longer. In either event, it’s always best to contact your broker early for a truck insurance quote.
Are there any insurance options for trucks used in agriculture?
Trucks and HGVs used in agriculture typically need standard truck insurance or haulage insurance. Certain types of agricultural vehicles – such as tractors, combine harvesters or transporters – need a different type of cover known as special types fleet insurance or plant insurance.
What happens if my truck’s cargo is damaged while being moved?
If you have goods in goods in transit insurance, then you’ll be able to claim for accidental damage, loss, or theft of the goods you are carrying. If you routinely carry goods for other people, you’d be wise to add goods in transit cover to your truck insurance quote.
How can I get a truck or HGV insurance quote?
Getting a truck or HGV insurance quote through Instatruck is easy. You can start your quote today using our innovative truck insurance quote system by clicking here, or if you’d like to speak to a specialist and get some independent truck insurance advice, you can call us on 01332 320540.
Like some more HGV or truck insurance help?
We hope this truck insurance guide has proved useful. If you’d like some more truck insurance help or a truck or HGV insurance quote, then please contact Instatruck on 01332 320540. Our award-winning team of independent insurance brokers will be happy to give you all the help you need and provide you with a great value HGV or truck insurance quote.