What is haulage insurance and is it the same as HGV Insurance?


Photography by Nigel Green at www.truckpictures.co.uk
Photography by Nigel Green at www.truckpictures.co.ukWhat is haulage insurance and is it the same as HGV Insurance?

What is haulage insurance and is it the same as HGV Insurance?

There may be times when the terms commonly used in the insurance of Heavy Goods Vehicles (HGVs) may be less than precise. Nevertheless, it may be helpful to establish some of the ground rules in order to ensure that you get the insurance you need and that your insurer understands the nature of the business you are in.

The following points, therefore, are designed to clarify some of the possible differences between lorry haulage insurance and HGV insurance:

Haulage insurance or HGV insurance?

  • that ubiquitous source of definitions for all manner of things – Wikipedia – is surprisingly unclear when it comes to haulage;
  • the definition refers haulage simply to the business of being a haulier and the transport of goods over land for your own company or for other companies;
  • so far, in other words, so relatively unhelpful when it comes to distinguishing between haulage and HGV insurance;
  • within the insurance industry, you might find the distinction written somewhat more closely
  • haulage insurance being related to cover for the carriage of goods for hire or reward – namely the business of charging to deliver goods owned by someone else;
  • HGV insurance, on the other hand, may sometimes be described as carriage of own goods insurance, since it refers to the transport of goods which are owned by the same company;

In practice

  • in practice and according to these distinctions many lorry owners may operate both as hauliers and as transporters of goods which they also own;
  • in practice, therefore, the distinctions between haulage insurance and HGV insurance may be blurred to say the least;
  • for insurance purposes, therefore, the simplest rule may be to ensure that your insurer understands the business you are in – both on a day to day basis and occasionally as the need may arise;
  • on the basis of this understanding – and with your insurer fully on board – there is probably very little to choose between haulage insurance and HGV insurance;
  • if the distinction continues to confuse, we here at Isis Insurance Services are only too pleased to help steer you through the definitions;

What it means

  • what it boils down to – whether you are talking haulage or HGV insurance – is that you have the same basic choices between third party, third party, fire and theft, or comprehensive insurance for the vehicle you are seeking to protect;
  • just as any other motor insurance, cover for your HGV also carries an excess – the first part of the cost of any claim for loss or damage made under the policy;
  • as with other insurance policies, too, you may typically choose to take on an additional voluntary excess – in other words, agreeing to pay a greater share of any claim for loss or damage – in order to gain a reduction in the cost of the insurance premiums you need to pay.

Provided you keep in mind the importance of informing your insurer of the precise nature of your business, therefore, there is in practice likely to be very little practical difference between lorry haulage insurance and HGV insurance.