How to make savings on your HGV Insurance costs
If you operate a heavy goods vehicle, or HGV, it needs to be insured – that is a legal requirement. But HGV insurance costs money that your business is likely to be able to afford only sparingly.
The answer, therefore, may lie in meeting your legal obligations but at the same time spending no more than you need on the insurance.
The following are some tips and suggestions about doing just that:
- saving money might be a question of choosing those elements of cover you require and avoiding those which you probably do not need;
- it may sound simple, but when you are choosing an insurer through shopping around you might identify only those popular packages which the market seems to offer;
- a specialist HGV insurance provider, on the other hand may use his expertise and experience to match more closely your particular, individual needs with the many different products available – this advantage of using an insurance broker is something highlighted by the government backed Money Advice Service;
- here at Isis Insurance we have just that experience and expertise to help make sure that the cover you arrange is the cover you need – no more and no less;
- although third party cover is the basic legal minimum, you also have the choice of insurance against third party, fire and theft;
- given the likely value of your lorry and the cost of repairing accidental damage, however, perhaps you are more interested in fully comprehensive cover;
- one of the ways of saving money on the cost of either third party, fire and theft or comprehensive insurance is to accept a higher rate of excess – thus sharing the risk of loss or damage – and thereby reducing the likely cost of the premiums;
- if you intend others to drive your lorry, you may save money on the cost of insurance by naming all other drivers;
- clearly, this may be possible only if you employ the same team of drivers on a regular basis and less so if you use seasonal or casual drivers;
- in any event, in your application for insurance you are likely to be asked questions about your driving record and past history of insurance claims – the healthier that record, the greater the chances of your gaining premiums at a reduced rate;
- any insurance is about the calculation of risk – and the insurer of your HGV adopts exactly the same approach towards the risk of loss or damage to your heavy goods vehicle;
- provision for parking in a secure yard, security alarms and immobilisation devices are all measures you might consider in order to demonstrate your having taken all reasonable steps to minimise the risk of theft or vandalism – and the better you are able to demonstrate this, the more likely are you to gain a reduction in the cost of the insurance.
It may be evident, therefore, that there is no single solution to your quest for cutting the costs of insuring your HGV, but rather a combination of several factors. Taken together, these may prove a considerable help in helping you to reduce the costs to your business.