Commercial Motor Insurance Facts

More information on different levels of cover and ratings factors

Commercial Motor & Fleet

Motor insurance is compulsory in the UK. The Road Traffic Act 1988 (as amended and updated by later legislation) makes it illegal to use a motor vehicle on a road, or public place, unless insurance is in force covering legal liability for injury to others and damage to their property. From May 2011, it also became illegal to keep a vehicle without appropriate insurance unless the DVLA has been notified that it is ‘off road’.

There are 4 levels of cover available:

  • Road Traffic Act only
  • Third party only
  • Third party, fire and theft
  • Comprehensive

There are two distinct types of policy that are common in the commercial vehicle insurance market:

  • Fleet – this is where a number of vehicles owned by the same company are insured on a single policy. Fleet policies can consist of private cars, goods-carrying vehicles, other commercial vehicles or a mixture of different types.
  • Non-fleet – this is the term used to describe policies which insure single or usually fewer than five vehicles

Rating Factors

There is greater individual underwriting of commercial motor risks compared to private motor, because of the huge variety of different categories of vehicles and their uses, together with the need to consider the individual claims experience for each risk. The strength of a Commercial Motor team in a broker, it’s relationships with insurers and the scale and scope of insurers it can deal with will make a huge difference to the premiums customers will pay.

Fleet risks are predominantly rated on the historical claims experience of the fleet, adjusted to take allowance for inflation, administration expenses and profit.

Non-fleet risks are rated on a combination of factors, including the type of vehicle; details of the proposer and drivers (including the business description and the drivers’ age, driving and claims record); the geographical area of use; the use to which the vehicle is put; and the level of cover required.

Road Traffic Act (RTA) Cover

This is the minimum level of cover which is available and provides the cover needed to meet compulsory insurance requirements. Very few RTA policies are issued in the UK and most insurers will offer Third Party cover as a minimum.

The cover provided under an RTA policy includes:

  • indemnity for bodily injury or death caused to third parties, including passengers, which must be unlimited in amount
  • indemnity for loss of or damage to property belonging to third parties; limited to £1,000,000
  • indemnity for claimants’ costs and the expenses of handling the claim
  • charges for any emergency medical treatment and hospital charges arising out of the use of the vehicle
  • the minimum legal cover required when a vehicle is being used in another EU country (or the minimum cover required in the country where the vehicle is kept, whichever is the greater). This meets the requirements of the Third EU Motor Insurance Directive
  • liability to persons in the employment of the insured, when travelling as passengers in the course of their employment (but not the driver). This also meets the requirements of the Third EU Motor Insurance Directive. Any legal liability that the employer has towards the driver would be covered under their employers’ liability policy

An RTA-only policy does not cover any damage to the insured’s own vehicle.

Third Party Only

The cover provided by a third party only policy includes all the cover under an RTA policy, plus the following:

  • cover is extended to apply whilst the insured vehicle is being driven on private land, as well as on a road or public place. Territorial limits apply, which are usually anywhere in the United Kingdom, the Isle of Man or the Channel Islands
  • cover for accidents occurring whilst loading or unloading the vehicle
  • an increased limit for third party property damage, typically £5 million
  • indemnity to anyone who is driving or using the vehicle on the insured’s order or permission, including for social, domestic and pleasure purposes
  • indemnity to passengers should they be held responsible for an accident
  • legal costs incurred in the defence of a claim
  • limited cover for legal representation costs following a prosecution for a motoring offence which may give rise to a claim

There are specific exclusions that relate to a third party only policy:

  • damage to property owned, held in trust by or in the custody or control of any person claiming indemnity under the policy
  • liability covered by any other insurance policy

Third Party, Fire and Theft

This cover includes some cover for the insured’s own vehicle.

The cover provided by a third party, fire and theft policy includes all the cover under a third party policy, plus the following:

  • damage to the insured vehicle by fire, lightning or explosion
  • damage to the insured vehicle during attempted theft or whilst it is stolen. Some insurers include the taking of the vehicle without consent
  • loss of the insured vehicle due to it being stolen and not recovered

In addition to the two third party policy exclusions identified earlier, a third party fire and theft policy also excludes ‘loss of use’; i.e. any financial losses incurred by the insured whilst their own vehicle is off the road.

Comprehensive

This level of motor insurance cover offers the widest possible protection.

The cover provided by a comprehensive policy includes all the cover under a third party fire and theft policy, plus other accidental or malicious damage to the insured’s car. The cover provided is on an ‘all risks’ basis, which means that all loss or damage is covered unless specifically excluded.

A number of specific exclusions apply to comprehensive cover, including:

  • loss or damage to accessories and spare parts, unless on the insured’s vehicle
  • wear and tear and depreciation
  • loss of use
  • mechanical and electrical failure or breakdown. It is only the part that fails which is excluded; any resulting damage to the vehicle is covered
  • damage to tyres caused by road punctures or bursts

Commercial Motor Insurance from Anthony Jones

The range of commercial vehicles is enormous and Anthony Jones are well versed in dealing with variety. Typically:

  • Cars used in connection with a business
  • Goods-carrying vehicles; the term used to describe all the different types of vehicles that are designed to carry goods. We need to know carrying capacity or a commercial vehicle’s plated weight. Note that goods carried are not covered by the motor policy, cover instead being provided under a separate goods in transit policy
  • Passenger-carrying vehicles, which include minibuses, coaches and buses
  • Agricultural and forestry vehicles
  • Special types
  • Hire vehicles. These fall into three categories:
    • private hire – the hiring of a car with driver from the operator’s premises
    • public hire – taxis which can be hired on the streets or at recognised taxi stands
    • self-drive hire – the hire of a vehicle, such as a car or van, without a driver

 

Need more
information?

Please call Dave Godfrey or the team on 020 8290 9099 to see how we can help you with your haulage fleet insurance. Alternatively, you can email us at commercial.motor@anthonyjones.com

FAQ’s

Some of our most asked questions, answered below:

HGV Medical: What is Involved & When Is It Due?

At Anthony Jones we have created an online resource to answer your questions at your convenience. Simply browse a category to find FAQs relating to that section.

When would I need Commercial Vehicle insurance rather than Car insurance?

If you have a company and have vehicles that you use within the business, then you need Commercial Vehicle insurance. The vehicles you own might include those which are obviously commercial vehicles, such as lorries, vans and forklift trucks. But company cars are also classed as commercial vehicles and should be covered by Commercial Vehicle insurance. Private car insurance will not include cover for company-owned cars.

When would I need Fleet insurance rather than Multi-Car insurance?

Multi-Car insurance can be used to cover a number of privately-owned cars used for personal use, perhaps incorporating a bit of business use, such as commuting, too. However, Multi-Car insurance can’t be used to cover company cars. For this, you’ll need Fleet insurance. If you want to insure fewer than 5 or 6 company cars or other commercial vehicles, you can protect them with a Mini-Fleet insurance policy.

What is Goods in Transit insurance?

Goods in Transit insurance (GIT insurance for short) is also often referred to as Cargo insurance. As the name suggests, this insurance covers goods (which includes everything from food to furniture, building supplies to cars, and machinery parts to animals) which are being transported from one place to another. Goods in Transit insurance protects your goods in case they are damaged or lost while they are being transported by road, air, rail or sea.

What can I use my van for with temporary van insurance?

With temporary van insurance, it will depend on the usage you select, but as standard, you will be covered for social, domestic and pleasure use. This includes to and from various places of work and for the carriage of your own goods in connection with your business. Please be aware there is no cover for any goods carried in or on the vehicle, so you'll need a separate policy to cover those goods.

What types of work can I use my van for with a temporary van insurance policy?

There are some types of work that are allowed and some that are not.

Types of work that are generally permitted:

  • Tradesman/Tradeswoman
  • Office worker
  • Dog walker

Types of work that are not permitted:

  • Taxi use or commercial travelling of any kind
  • Hire & Reward
  • Use in connection with the motor trade
  • Use to carry hazardous or dangerous goods

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Reviews

 

Arron Chambers
Arron Chambers
19:53 27 May 24
Very good ppl my insurance advisor went above and beyond to get my quot for my lorry van and public liability we hit a few snags but that didnt faze him he overcome them in a hart beat cheers guys defo woukd recomend
matthew lorimer
matthew lorimer
16:07 23 May 24
been dealing with stephen over the last few weeks, he's been very friendly,responsive, helpful and gone out of his away to get my insurance over the finish line. hassle free and would highly recommend future dealings to friends and hope to deal with him again on going!!
Angus Storrier
Angus Storrier
15:34 08 Mar 24
Vanessa Mead
Vanessa Mead
10:00 17 Jan 24
Ed Tatham
Ed Tatham
15:09 11 Jan 24
wendy plant
wendy plant
10:10 01 Dec 23
I have been a client of Anthony Jones for 20+years. All the Advisors are experts in all areas of Insurance. The Advisors are very professional, helpful, cheerful, and caring. They make life easy when it comes to dealing with Insurance.
Leo G.
Leo G.
20:30 31 Oct 23
Best brokers !
Gail Proud
Gail Proud
21:39 10 Oct 23
Thank you for making insurance both Motor and Household stress free.
michael bentley
michael bentley
08:19 25 Sep 23
Very happy for many years, formerly dealing with Bob Chapman, Rose and Claire. Very friendly, very competitive quotes.
Colin Lee
Colin Lee
09:20 12 Sep 23
Joe and Mark are a credit to their profession. Thank you very much for your professionalism and the honest way that you conduct business.
Jed Lowe
Jed Lowe
16:06 07 Jul 23
…. Walked the extra mile including taking call on day off to sort out a mess caused by previous broker … can’t thank Bo and Tom enough ….
William Tracy
William Tracy
08:10 02 Jul 23
I have my Public Liability insurance with Anthony Jones. Tom Cowap normally deals with all my queries and renewal. I have found this company to be very helpful and polite and have dealt with my inquiries and renewal's quickly. Tom has always been really helpful.
Vapourlites Ltd
Vapourlites Ltd
13:43 11 May 23
Professional and efficient, first class service provided
Louise Burton
Louise Burton
13:46 21 Apr 23
I have worked with this company and Joe Penny for many years now and wouldn’t go anywhere else. Would Highly recommend Joe to anyone
lucy barham
lucy barham
09:09 21 Apr 23
Anthony Jones have have taken care of our commercial and fleet insurance needs for years. I have recently renewed our commercial & Liability insurance and trust that Joe Penny (account handler) understands our business and always strives to get the best rates and policy for us. I would highly recommend to anyone.
Ben Doughty
Ben Doughty
19:08 23 Oct 22
Steve @ Anthony Jones has been servicing our business for years and has always provided the best service I could ask for from a broker. Very responsive, great communication and a great company and individual to do business with. Does what is expected and more. Thanks
Louise Evans
Louise Evans
22:44 09 Aug 22
I use Anthony Jones Insurance Brokers annually for my home and contents policy. Sharon is always great to deal with, responsive, professional and found me a great deal. Really happy with my policy and will continue to use Anthony Jones in the future.
Amy LH
Amy LH
19:19 19 Jul 22
I have been a client of Anthony Jones for over 10 years as the broker for the buildings & associated insurances for our freehold property of 3 flats. For the last 6 years I have dealt with Tom Cowap who is always highly efficient, professional and easy to deal with. He really went above and beyond this year when he found the existing policy had stopped covering flood risk and that the alternatives offered a significant increase in premium on the previous year. He didn't involve me until he'd found policies which offered the right cover, but with a reasonable premium and it was genuinely surprising that he didn't try to sell me the more expensive option. I can't imagine wanting to move to a different broker in future because of this great service. Thanks Tom!
Stu Matson
Stu Matson
15:06 01 Jul 22
We have dealt with Tony and Steve for a few years now and are always so pleased with their service, patience and support in helping us get the insurance plans required for our outdoor events. I really couldn't recommend highly enough.
Arif Ali
Arif Ali
11:47 19 May 22
Bo has helped with the review and renewal of our Property Owners insurance for the last few years. I have found Bo very helpful and professional and would certainly recommend her to others. Kind regards.
Olga Bradley
Olga Bradley
16:28 11 Apr 22
Tom was very helpful, and very patient during the whole process of finding me a qoute for public Liability insurance. He helped make the whole process much easier for me. I would use his service again in the future.
Keith Rossiter
Keith Rossiter
18:42 28 Mar 22
Very efficient and friendly service. Competitive prices.
MODUS (MATL)
MODUS (MATL)
12:09 14 Mar 22
We have used Anthony Jones in excess of twenty five years. Always find them helpful and efficient, and they are able to get us the best costs for our insurance policies.
Brian Sealey
Brian Sealey
15:39 14 Feb 22
I dealt with a bloke called Joe Penny. From the minute we starting speaking he explained everything to me, explained all the ins and outs of the insurance. He made me feel at ease straight away. I would definitely recommend him if your looking for vape shop insurance. Cheers Joe will be back in touch when it’s time for renewal 👍
Paul Jackson
Paul Jackson
12:36 16 Nov 20
I wrote the following two years ago. Since then, I have continued to receive great service from the team at Anthony Jones - they are courteous & very effective, a pretty good combination for an insurance broker!"I chair a campaign to save our local pub. We launched a share sale and succeeded in buying the Crown a few days ago, so we needed help in selecting the right insurance for the site whilst renovations were under way, including unoccupied property cover. Tony Ellis of Anthony Jones Insurance was really helpful in guiding us through this process, and we now have the correct cover in place. Fast, easy to deal with & knowledgeable - just what you need from your insurance broker! Well done Tony and all at A Jones."
Irene Sauer
Irene Sauer
12:04 31 Aug 20
Excellent service.
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