How Does HGV Insurance No Claims Bonus Work For A New HGV Driver?

The HGV industry had had a difficult few years.  Some of the recent challenges the industry has faced have included a shortage of drivers, Brexit, rising fuel costs, and changes to the rules regulating driving and vehicles.  However, due to the push for new recruits in the last few years, the industry is now expecting many new drivers to enter the workforce.

Many new HGV drivers are not aware of the rules and requirements relating to HGV insurance.  It is important for anyone entering the industry to understand the rules relating to driving and insuring HGVs.

New training has been developed and coordinated by the Driver Academy Group, a consortium that comprises Manpower, Logistics UK, and the Department for Education.  This means that many hundreds of new drivers are training to become HGV drivers and begin their new careers.

The Driver Academy Group has worked with the Department for Education to deliver Skills Bootcamps in England for new drivers. 

Interestingly, the Driver Academy Group has reported that 7% of applicants for the new Skills Bootcamp were women.  Historically, women have only made up 2% of the HGV profession.  There has also been increased interest from people from ethnic minority groups.

For any new starter to the industry, one of the most important aspects of being an HGV driver is having adequate insurance.  Whether you are driving an HGV for a haulage company or starting your own business, it is essential that you have the appropriate truck insurance in place before you make any journey.

HGV/Truck Insurance

If you have just passed your HGV test you will want to ensure that you can get out and start driving as soon as you can.  HGV tests can be costly and take some time to complete so once you get them done you will want to start earning.

As a new driver, you will need to make sure that you have the right insurance cover in place. 

The level of cover you need depends on many factors, including the distances you will cover, your age and experience, and what kinds of goods you will be transporting.

HGV insurance is specifically designed so that it meets the needs of the business.  In addition to the main HGV insurance, you can opt to have additional cover depending on what kind of business you are involved with.  This additional cover can include things such as goods in transit cover, employer’s liability insurance, and breakdown cover.

As the industry tries to recover from the shortage of drivers, and an aging driving population, it is essential that more new drivers are recruited.

However, it can be difficult for new and young drivers who enter the HGV industry to find insurance that is both adequate and affordable. 

HGV Insurance For Young Drivers

Some insurance companies consider younger drivers to be higher risk in terms of insurance.  This is largely due to the fact that many younger HGV drivers will not have the years of experience that experienced HGV drivers have.

Depending on your age and experience, your insurer will tailor your insurance policy so that it provides you with the cover you need.  Just as car insurance is often more expensive for younger drivers, the same applies to young HGV drivers.

You should seek to discuss your needs in full with your insurance provider, to make sure that your policy covers you for all your driving needs.

Isis Insurance has many innovative insurance products that could meet the needs of new drivers and enable them to enter the profession quickly and easily.

What Is a No Claims Bonus?

A no claims bonus is essentially a discount that you can be offered on your insurance premium.  If you have been driving an HGV for at least 12 months, you can start to build up your no claims bonus.

For each year that you have been driving without making any claim on your insurance policy, you can earn a years no claim bonus.  No claims bonuses cannot be earned for part of a year.

The way insurance companies use no claims bonuses, is that they knock a certain percentage off your insurance premium and then apply a discount based on the extent of your no claims bonus.

What About No Claims Bonuses For New Drivers?

As a new HGV driver, it is unlikely that you will have built up any no claims bonus whilst driving a heavy goods vehicle.  You cannot normally use any no claims bonus you have built up relating to any private car you own.

If you have driven a van and have a no claims bonus, then you may be able to use the no claims bonus but there are conditions attached so it is best to get in touch with your insurance company to discuss your requirements.

However, at Isis there are a range of discounts available for businesses that are using drivers who have a history of claim-free driving.  It is always worth speaking to your insurance broker as soon as you can to see what discounts and offers are available to you.

HGV Insurance

Heavy goods vehicles need comprehensive insurance to ensure the vehicle is protected alongside the driver and the goods carried by the vehicle. Depending on the business you work for, you may need a non-standard and bespoke insurance policy.

For any changes to your business and its operations, please contact ISIS Insurance today and our expert advisers will be on hand to advise you further.

ISIS Insurance offers a wide variety of insurance options and quotes that cover everything a HGV might need when it comes to insurance, from skip lorries to refrigerated vehicles.