subject: Why Bother With Commercial Vehicle Insurance? [print this page] If you own a commercial vehicle then it's safe to assume that you're dependent on it to a great extent as far as income is concerned. With this in mind, it only makes sense that you will want to have peace of mind in knowing that you have adequate cover in place in the event that something goes wrong in the future and your vehicle becomes damaged as a result.
If your vehicle is being used for any type of commercial purpose, then the answer is yes. In other words, if you're using the vehicle to transport goods, or even people and you're being paid for it, then it's considered to be a commercial vehicle. In fact, if you decide to take your chances and you only purchase regular insurance, you can be rest assured that your insurance company won't pay out in the event that you submit a claim.
Remember, if you're involved in a collision, the investigating officers will draw up a report and if they notice any goods in the vehicle which suggests that it's being used for commercial purposes, they'll mention it in the report. When the insurance company finds out, your policy will immediately become invalid.
Something else to bear in mind is that insurance policies can diffe tremendously and the type of policy you take out may include certain clauses which prohibit you from using the vehicle for certain purposes. For example, your policy may only allow for the transportation of light goods. If you're then found to be using it for transporting heavy goods or for example any passengers, the insurance company has the right to cancel the contract with immediate effect.
So, as you can see, choosing the correct type of insurance is crucial. Of course the actual level of cover provided by the policy you take out is something else which also needs to be examined closely.
Contrary to what many people believe, commercial vehicle insurance doesn't always automatically include cover for the contents within the insured vehicle. As such, if you transport valuable items on a regular basis then 'Goods in Transit' insurance is some which should definitely be considered.
You'll find that most companies offering commercial insurance will also be able to provide contents insurance. Depending on the sort of cover you opt for, there may be a maximum cover limit imposed. If not, any claims will be based on the actual value of damaged or missing goods.
Generally speaking, you'll find that it almost always costs more to insure a commercial vehicle. This is of course because claims involving commercial vehicles usually tend to cost the insurance company more than claims involving private vehicles. In other words, commercial vehicles are considered to be high risk.
Even though commercial vehicle insurance is usually more expensive than private
vehicle insurance, there is however certain steps you can take in order keep premiums down. For example, you could opt for having a higher excess, you can ensure the vehicle is fitted with certain security features and most importantly of all, don't make any claims unless it's an absolute must.
by: Tom Jones
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