subject: Commercial Vehicle Insurance And The Law In The Uk [print this page] Whether you drive a huge sixteen wheeler truck, a regular car or van, or even a motorcycle, you still require insurance before you are allowed on any public road in the UK.
The actual type of insurance you require will depend not only on the type of vehicle you drive, but it will also depend on what the vehicle is being used for. In other words, is the vehicle being used as a private vehicle, or is it being used in order to perform business activities?
If a business or a company owns one or more vans, they are required by law to take out commercial vehicle insurance for each of the vans in question. What many small business owners don't realise is that the self same law applies, even if you only run a small home-based business.
For example, if you have a small business at home where you make handmade soaps and candles, and you use your van in order to collect materials and to deliver goods, your van is then considered to be a commercial vehicle, and it then needs to be insured as such. After all, you're using the vehicle to perform duties which in turn will result in you receiving remuneration.
If your van gets stolen, and you only have regular insurance, you could probably get away with claiming for a new van, but you wouldn't be able to claim for missing goods. If your insurance company got wind of the fact your vehicle was being used for business purposes, they would refuse to honour your claim. Of course, materials for making soaps and candles on a small scale probably don't cost that much so you'd more than likely be able to pick up the losses yourself. It would certainly be a different matter altogether if the back of your van was full of valuables though.
Being involved in a collision is a different matter, and if that were to happen when you're driving around with the wrong insurance, you could stand to loose far more than just your contents. In fact, depending on the severity of the accident, you'd probably get to keep all the material you had in your van. Don't expect the insurance company to pay for any damages though, and don't expect them to pay for any repairs either.
In their report, the investigating officers are required to provide details regarding the contents of your vehicle, and if they mention in their report that they found boxes of soap making material and boxes of candle wax, together with a variety of moulds, the insurance company will immediately know what you've been up to. Of course, if insurance companies were really wonderfully kind people, they would look the other way and pay your claim. Unfortunately they're in business, and they are certainly not going to pay you out if they don't have too. That's not to say you chose a bad insurance company, because as you know, business is all about making a profit.
Lastly, you're going to be in trouble with the law as well. If you were stopped by the police while driving a car, and they asked to see your papers, you couldn't exactly show them your motorcycle insurance and expect to get away with it. You would be fined for driving without insurance. The same applies if you're caught driving a commercial van when you only have regular insurance. The bottom line is, if your van is part of your business, you need commercial vehicle insurance.
by: Tom Jones
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