Benefits of HGV Insurance
If you are going to use a Heavy Goods Vehicle on the roads or other public space, the law demands that you have a minimum level of third party insurance. Whilst insurance may be something you have little choice but to arrange, are there any benefits that come to you in the process?
The purpose of insurance
To understand the key benefit which any kind of insurance brings it may be helpful to return to basics and ask what purpose such an agreement serves. In essence, insurance strives to put you back to the situation you were in before an incident involving loss or damage by giving you financial compensation or indemnity.
In practice, the benefits of HGV insurance work as follows:
- third party claims – without insurance, you are entirely responsible for meeting potentially very high claims from any third party injured or suffering damage to their property involving your HGV. Even the most basic cover required by law ensures that the insurance meets such claims and you pay no more than the insurance premium;
- third party, fire and theft – if you chose this level of insurance, not only does it compensate you for the cost of third party claims, but also for a sum representing the current value of your HGV if it is destroyed by fire or stolen, less any excess to which you have agreed;
- comprehensive cover – if you chose this level of insurance, not only are third party claims covered, but also loss or damage through fire, theft, attempted theft and practically any kind of accidental damage to your vehicle.
Is it worth it?
When you compare HGV insurance, you might be asking yourself whether the cover is worth the premiums you need to pay. In that case, you might go on to ask what the cost to you might be if you had not arranged insurance.
You might do this by imagining the worst case scenario of when your expensive HGV is stolen and never recovered or totally destroyed by fire. The benefit of insurance is that you are likely to receive a cash settlement allowing you to replace the vehicle on a like for like basis.
It might not be the total loss of your vehicle, but rather the theft of some essential part or parts of it. In the case of an HGV, of course, these may represent a considerable sum.
The website LGV Drivers, for instance, reported the theft last month of more than £13,000 worth of lorry wheels and tyres alone from premises near Boroughbridge in Yorkshire. Provided the owner had taken the precaution of arranging appropriate insurance, the loss is likely to have been met by the insurers rather than from his own pocket.
Remaining to be convinced?
If you still need any convincing of the benefits you might derive from insurance for your lorries you might ask specialists in this field of cover – such as ourselves here at Isis Insurance – where the specific advantages to your own business may be spelled out in more detail.
Insurance may be designed to put you back into the condition you enjoyed before loss or damage occurred to your property. The practical application and the benefits you might enjoy through this kind of cover, however, may need to be carefully matched between your individual needs and circumstances as an HGV owner and the range of insurance products available.
This is an area where the specialist provider may be able to offer invaluable advice.