/What Complexities Are Involved In Insuring Commercial Vehicles
Commercial Vehicle

What Complexities Are Involved In Insuring Commercial Vehicles

Are you looking to get your new commercial vehicle or fleet of trucks insured?

Getting your commercial vehicles insured can financially protect them against damage, theft, and accidents.

And it is equally true that finding suitable commercial vehicle insurance can be quite complicated.

Recently, finding suitable commercial vehicle cover is even more challenging, as many insurers are changing their terms and conditions, which typically are not easy to understand due to the technical jargon used.

Fluctuating premium prices are another concern.

Based on such concerns, here we have summarised some of the key complexities when it comes to sourcing insurance for your commercial vehicles -explained jargon-free.

What Is Commercial Vehicle Insurance?

Not all small business owners are aware of the difference between commercial vehicle and personal vehicle cover.

In Australia, commercial vehicle cover is typically designed for vehicles used for business purposes, such as vans, trucks, forklifts, trailers, utes and sedans. It can cover small and large vehicles and you may be able to add multiple vehicles to one policy.

Complicated CostsHow Much Does Commercial Vehicle Insurance Cost?

The cost of commercial vehicle insurance is determined by several factors.

For example, vehicles used for business purposes typically spend more time on the road, making them more prone to accidents. This higher risk exposure can raise the cost of insurance for commercial vehicles.

Your small truck insurance quote might look different to what you would expect for a business vehicle. That’s why the business vehicle quotes or fleet insurance quotes in Australia need to be reviewed closely.

Factors that Influence Commercial Vehicle Insurance Cost Include:

  • Type of Vehicle According to Make, Model, Year and Even Weight. The Use of Vehicle (travelling or delivering supplies)
  • Number of Drivers Using Your Vehicles
  • Accident History of the Driver/s

(Tips: You can lower the cost of your commercial vehicle insurance by following the tips given below:

  • Shopping around for quotes to compare them.
  • Opting for a higher deductible
  • Combining policing for discounts
  • Working with drivers owning a clean driving record.
  • Using a commercial vehicle insurance broker to compare costs and cover terms
  • Minimising claims

What Does Commercial Vehicle Insurance Cover?

Keep in mind that a commercial vehicle insurance policy won’t cover all incidents.

Comprehensive Commercial vehicle insurance typically covers the following events:

  • Damages by you or others whether you are at fault or not.
  • Natural and man-made incidents such as theft and fire.
  • Third-Party property damage
  • Third person personal injury
  • Theft and Fire

The cover might vary from insurer to insurer and the level of cover selected.

Who Is The Right Insurer For Your Commercial Vehicles?

In Australia, there are dozens of brokers and insurance companies dealing in commercial vehicle insurance. While it gives you a wide range of options to choose from, it can be overwhelming to choose the right one from the sea of insurers.

It is not easy for many businesses to decide on the right insurer.

Although it takes time and patience to choose wisely, it pays off in the long run.

Here are some things to keep in mind while choosing the insurer for commercial vehicles:

  • Reviews and Testimonials
  • Understanding of Your Industry
  • Track Record of Settlements
  • Specific Covers for Your Industry

These are just some tips to get started.

A smart commercial insurance broker can help you compare cover and premiums, saving you time and money.

Jargon And Technical Language:

Reading terms and conditions is a step many a small business owner skips when purchasing insurance.

After all, few people like to go through complicated jargon and technical terms used in the PDS.

Although an insurer might infer things orally, the conditions in writing will often prevail over the spoken word.

If they are too complicated or ambiguous to understand, or your time is better spent on other tasks, ask your insurance broker for help.

vehicle insurance. What do you think? Let us know by commenting below!


*Important: Cover may be available subject to meeting insurers underwriting criteria. Some of the covers listed may or may not be available or may have limitations or exclusions. Cover inclusions vary significantly from insurer to insurer. DO NOT rely upon the above. Check your policy schedule carefully for inclusions and exclusions and limitations. Talk to a business insurance broker for more information.

Author Bio:

Romit Malhotra is the brand representative of Smart Business Insurance, a leading Australian insurance broker. A big foodie, he loves to travel the world. Also, a diligent businessman, Romit likes to pen down his thoughts on related topics whenever he finds some free time.