Insuring trucks - the big movers

Truck insurance is a more specialised type of cover than car insurance, so it is necessary to seek a dedicated policy. Some business insurance plans may include truck insurance, if the business is a truck or transport vehicle company or some other type of courier, for example. This would also apply if the truck or transport vehicle itself is a commercial motor and registered business. However, regular business insurance probably won’t fully cover the particular requirements of trucks, making a specified policy a better choice.

Required level of truck insurance

The level of cover you need for your truck or truck business will vary from situation to situation. However, some essentials to take into account include:

• Public and products liability: This will protect your business against third party injury and property damage. Generally, you can be covered for values between $5 million and $26 million.

• Carrier’s liability: Covers damage to, and loss of, transported goods. Insuring the goods being transported limits your liability and may prevent you from having to absorb a large financial loss if something happens to the transiting goods. Carrier’s liability can also cover you against negligence claims. Most insurers will offer packages that cover both the vehicle and the goods being transported. Not protecting yourself against loss or damage to goods may affect clients’ confidence in your service. Potential clients may be unwilling to risk giving you their business if you are not adequately insured.

• Fire and theft: In addition to insuring your truck against fire damage and theft, some policies may cover you for related harm to other vehicles or property. Check the fine print or ask your insurance broker.

• Third party liability: This relates to damage to other people’s property and some policies may cover you for as much as $30 million. Third party liability cover can be expensive but may offer an added degree of confidence. Standard third party insurance probably will not cover you for damage to other vehicles or property, only for injury to another party. If you are without third party liability cover and a claim made against you is successful, it is possible that you could lose your truck and/or business if you cannot afford to pay the damages.

Your insurance company can help you to determine the level of cover appropriate to your situation and ensure that you have adequate protection for your truck.

Insurance payment schedules

Some insurance providers charge an annual lump sum premium and others offer more convenient monthly payments. There will typically be a number of options available allowing you to select the one best suited to your needs. Direct debit and credit cards are generally acceptable, and most insurance companies will also offer a range of other payment methods.