What Is Commercial Motor Insurance And What Does It Cover?
Commercial Motor insurance is the collective name used to describe all of the different types of policy for the different types of vehicles used by businesses for commercial purposes including taxis, minibuses, trucks, tippers and HGVs. It also covers Fleet insurance too which is aimed at businesses with two or more vehicles. Commercial Motor policies come in three levels of cover; Third Party Only, Third Party, Fire & Theft or Comprehensive.
Commercial Motor Insurance Explained
If you use a taxi, minibus, HGV, truck, lorry, van or even fleet of vehicles for your business, then you will need commercial motor insurance, which is the collective name for all of these individual types of insurance cover involving vehicles used for commercial purposes.
When taking out your policy you can choose from three levels of cover. Third Party Only will cover any third party damage or injury claims made against your business in the event of an accident. It is worth noting that your vehicles will not be covered at all and all own vehicle repairs would have to be made at your expense, but this type of cover is the cheapest of the three. Third Party, Fire and Theft covers the same as Third Party Only but with added protection for your own vehicles for damage caused by fire or if they are stolen. Comprehensive on the other hand is the most expensive level of cover, however it will protect your own vehicles against any damage suffered during an incident.
As well as the three cover levels you can also select the driving restrictions applied to them. You could have a Named Driver policy which will allow specific drivers named on the policy documents to drive specific vehicles. This is perfect if your drivers will only ever need to drive specific vehicles.
Alternatively if you have a large number of drivers that may need to drive all of your vehicles, then you could benefit from an Any Driver policy, though this is usually more expensive as any driver within your business who holds a valid licence to drive the vehicle can do so.
You may wish to consider setting an age limit so younger and less experienced drivers cannot be included. Similarly you may wish to avoid drivers with convictions. This type of policy is ideal for a busy company with multiple vehicles and many drivers such as a taxi firm, hauliers or a delivery company.
Here are a few points to recap on the types of cover available under Commercial Motor insurance:
- Fleet Insurance
- Commercial Minibus Insurance
- Taxi Insurance
- Truck insurance
- Haulage insurance
- Comprehensive Cover
- Third Party, Fire & Theft
- Third Party Only
- Named Driver Policies
- Any Driver Policies
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