Guide to commercial vehicle insurance

Each and every day, millions of light goods vehicles (LGV’s) take to the roads of the U.K. If you are one of these drivers, and own a van, small lorry or any other LGV vehicle, then it is obviously crucial that you are covered by the correct insurance.

At Sagar insurances, our team are frequently quizzed on commercial insurance and how it differs from standard vehicle insurance. Therefore in this article, our team have provided an expert guide to help you choose the insurance that your light goods vehicle requires.

How does commercial vehicle insurance differ?

Just like any other vehicle, your LGV needs to be insured to be considered road legal. However, commercial vehicle insurance is slightly more complex than standard insurance, meaning unnervingly there is a chance that some LGV drivers are unknowingly going about their everyday life without the correct cover.

If you use your LGV for work purposes in any way, then you will need commercial vehicle insurance.

Commercial Vehicle Insurance does have similarities with standard insurance as in it still comes in the same three types, which are third party only cover, third party fire and theft cover, and fully comprehensive cover.

Although, commercial vehicle insurance has further classifications which are as follows:

  • Carriage of own goods
    This insurance covers LGV drivers who are carrying goods that are pivotal in them carrying out their trade or profession. This cover is also needed if you use your van to get to and from your place of work.
    • Carriage of goods for hire and reward
    This classification is suited to mainly delivery drivers, and more so those who make numerous deliveries on a daily basis. Some policies may also insure the goods within your LGV, so it is important to speak to your insurer to find out exactly how far this cover will extend.
    • Haulage
    Haulage is similar to the carriage of goods classification; however, it applies more to those who are delivering goods over a large distance from one point to another.

Learn more about commercial vehicle insurance.