Motor Insurance

This section provides answers to the following questions:-

What does Motor Insurance do?
Why is Motor Insurance Needed?
What Cover does a Commercial Motor Insurance Policy Provide?
Which Commercial Motor Insurance Policy will I Need?
Compare Motor Insurance Quotes Now

What does Motor Insurance do?

By law you must at least insure your legal liability for injury to others and damage to their property arising from the use of vehicles on the road - this is known as Third Party insurance.

Commercial Motor Vehicle insurance policies are Comprehensive, Third Party, Fire and Theft, or just Third Party. Comprehensive cover includes damage to your vehicle. The Third Party section of a Commercial Motor Vehicle insurance policy will meet your legal requirements to cover your liability to others.

If you also use private vehicles for business use, you must ensure the owner's private policies cover this. If you are not sure, ask them to check this with their insurance providers.

Why is Motor Insurance Needed?

Most businesses and organisations use commercial vehicles to carry out their day-to-day business activities. Given the number of commercial vehicles on the road at any one time it is no surprise that they are involved in about a third of all serious and fatal road accidents.

Commercial vehicles are also more likely to be the targets of crime because of what they may contain. Things like consumer goods, tools and equipment are all worth a considerable amount of money to thieves. According to a recent police report about 47,000 commercial vehicles are stolen every year in the UK at an asset cost to the owners of over £150 million.

In addition to this, there is plenty of evidence that some commercial vehicles are not driven very well. Though many of the drivers involved are professional, in most cases they are driving vehicles that do not belong to them, and may therefore be less concerned about driving with care and attention.

What Cover does a Commercial Motor Insurance Policy Provide?

There are three types of policy available to commercial vehicles which provide different levels of cover:

1. A fully comprehensive Commercial Motor Vehicle insurance policy provides comprehensive All Risks cover for your vehicle. This means that you are able to claim for almost any damage caused to your vehicle, apart from those things excluded by your policy. In addition to this you can also claim for acts of vandalism, theft, or any other accidental damage to your van which does not involve a crash.

Comprehensive insurance policies can also include glass cover or windscreen cover. The insurance company will normally have an arrangement with a specialist glass firm, and if you use them, you will probably only pay the excess, which is usually around £50.00. Under these policies you can normally get a small crack or chip in the windscreen repaired for free and there should be no excess to pay. If you do need to make a claim on your windscreen cover, this should not affect on your 'no-claims bonus'.

The excess on your insurance policy must be paid no matter who is at fault, whether your van is totally written off, or just mildly scratched. You will have to pay it because you entered into a contract. If you are not at fault, you will be able to claim your excess back from the other person's insurance company.

If you are comprehensively insured and you cannot use your van as a result of an accident, then most insurance policies will provide you with a temporary vehicle whilst yours is being repaired.

Some Comprehensive Motor Vehicle insurance policies will also allow you to drive other people's vehicles, but normally this is only with a limited amount of cover (Third Party).

2. Third Party, Fire and Theft Commercial Motor Vehicle insurance covers you for damage to your vehicle caused by fire or if it is stolen, and it covers you in the case of accidental death or injury of a third party arising from the use of the vehicle.

Third Party insurance only protects you against any claims made against you as a result of having an accident. Under a Third-Party, Fire and Theft policy you will also be covered for legal costs, such as a solicitor's costs.

If you are unlucky enough to have your vehicle stolen or damaged by a thief, you will be able to make a claim under a Third Party, Fire and Theft policy.

3. Third Party Commercial Motor Vehicle insurance covers third parties for accidental death or injury arising from use of a commercial vehicle. This is the minimum level of cover required by law.

Third Party insurance only covers you for damage or injury to a third party. You will not be covered at all for personal injury or damage to your vehicle.

If you have had an accident and you are proven to be at fault, your insurance company will pay:

• the money that is owed by law to any injured parties, and even to those killed in an accident
• the cost of repairing or replacing any property that has been damaged or destroyed
• any legal costs incurred

With a Third Party only policy your insurance company will not pay for the damages to your vehicle or the costs of repairing or replacing your own property which was damaged or destroyed in the accident. This type of policy provides no cover at all for theft of your vehicle or its contents, nor will it cover you if your vehicle is damaged or destroyed by fire.

Which Commercial Motor Insurance Policy will I Need?

You will need to work out your budget for insuring your commercial vehicle(s), the amount of miles driven each year, the distance travelled regularly, and the value of your vehicle(s), then make a decision on what you need.

Obviously you will pay more for a comprehensive policy than a Third Party policy but you will get much more cover. Clearly, a fully comprehensive policy is the best option as long as you can afford it.

Compare Motor Insurance Quotes Now

Motor Insurance Policies will shortly be available here at Coverzones.

Coverzones is an online service specialising in UK small business insurance. We're unique, not only because of the variety of products we offer and 700+ trades we cover, but also because of our commitment to cut out any unnecessary costs and pass the savings back to you the customer. That's why our rates are so competitive; allowing you to save money whilst still ensuring your business is appropriately covered.

Simply enter your details through our online form, specifying your particular small business insurance requirements, and we'll do the rest. Coverzones has partnered with the UK's leading business insurance providers and is able to instantly compare the market on your behalf. We show you up to 6 of the most competitive quotes available; you are then free to select and buy the policy of your choice, in your own time and at your own pace.