Top tips to save money on HGV Insurance
It is an expensive business operating a haulage operation. There is your investment in the HGV itself, of course, but then a host of other running expenses that are likely to include:
- paying your drivers;
- vehicle licensing and tax-heavy fuel costs;
- a seemingly endless need for repairs – not least because of the current state of many roads and which has prompted the Local Government Association to call for a £1 billion a year programme to fill the plague of potholes (according to a report in the Guardian earlier this year); and
- the cost of insurance.
Saving money on your HGV insurance
This is one area of expenditure where you may have greater control than you think, simply by exercising a few careful choices:
- the general insurance market is intensely competitive – by shopping around and comparing HGV insurance offered by different providers may lead to money saving deals – and here at Isis Insurance Services we aim to be as competitive as any;
- for your shopping around to be effective, of course, you need to decide what level of insurance you need for your HGV – you might save money, for example, by insuring an older, less valuable lorry, against just third party, fire and theft rather than a fully comprehensive package;
- in other words, the type of insurance you need is likely to be determined by the type of lorry you want to insure – choosing the vehicle for the work and purpose you have lined up for it may be one of the keys to ensuring that you pay no more than you need for its insurance;
- if the lorry is to be used extensively for work in Europe, for instance, it is important to ensure that there is adequate cover for use abroad;
- like many other forms of general insurance, HGV insurance invariably carries an excess – the first part of any claim which you need to pay for yourself;
- an excess is effectively that part of the risk of loss or damage that you take responsibility for, rather than the insurer – as a result, the greater the amount of excess you bear, the greater the savings you are likely to make in the cost of the premiums;
- the amount by which you agree to increase any excess, however, may call for a fine judgment between reducing the costs of premiums and paying a substantial amount of money in the event of a claim – set the excess too high and you may be defeating the whole object of having insurance;
- insurers typically take a customer’s claims history into account when setting premiums – the fewer claims you or your company has had to make, the more cost-attractive you might expect the premiums to be;
- you might also save money on the cost of insuring your HGV if you limit driving to named drivers – clearly, this may be an option only if you employ a regular crew of drivers and is likely to be less viable if you employ crews on a seasonal or ad hoc basis.
Insurance cover for your HGV or HGVs is likely to represent a significant ongoing expense for your business. Your choices about potential money saving approaches, therefore, may contribute to the overall success of your enterprise.