The Importance of HGV Insurance

Many people are aware that HGV insurancethe lorry driver pass certain requirements in order
exists, but not many know what is actuallyto be insured.
covered in and HGV policy. Heavy goods vehiclesThese requirements may include drug tests,
are seen all the time on the roads, but how manyalcohol tests, driving experience, minimum age,
actually ever think about the kinds of insurance aand a clean driving record for a specific length of
driver or company has when they see a lorrytime. There are some types of cargo that
pass by. Lorry insurance can cover more thaninsurance companies will not insure. This can be
just accidents. Since lorry theft is such a bigthings like explosives, bio hazards, or dangerous
problem, many truck insurance companies includechemicals. Insurance companies are in the business
the option to insure against theft. One statisticof making money, they charge people and
shows that ten HGV's are stolen in the UK eachcompanies premiums based upon the perceived
day. That is a big problem and fleet owners andrisk to the insurance company. If the risk is high,
independent drivers need the right kind of HGVso is the cost. Sometimes, the risk is so high the
insurance, otherwise they could be financiallyinsurance company doesn't want to take the
ruined.chance and will refuse coverage.
Some types of lorry insurance cover theOf course truck insurance will cover the basic idea
contents carried on the truck. This is sometimesof accidents. This is the type of insurance that
required by the companies contracting the HGVmost are familiar with. Accidents do happen, but if
fleet or driver. Usually this is done whenthe accident involves a large vehicle, like an HGV,
companies are shipping a large quantity of highthen the amount of damage can be far greater
cost goods and want to ensure that they don'tand the repairs can be more costly. For this
lose everything in the case of a dodgy incident.reason, HGV insurance is typically much more
This type of insurance is typically called Goods inexpensive than regular auto insurance. Again, the
Transit insurance.risk to the insurance company is higher and
Of course each type of insurance has the coststherefore the cost is higher to the policy holder.
associated with it. The cost of the insurance isSo the next time you see a big lorry pass you
paid on a specific periodic basis, like monthly,by, think about what it might be hauling and how
quarterly, semi-annually, or annually. This paidmuch the driver of the fleet owner has to pay
amount is referred to as the premium paymenteach year to insure the truck. That might help
for the insurance policy. Depending upon whichexplain why the cost of goods at the market is
types of coverage are chosen, the costs willso high and maybe make you appreciate the cost
vary. The more options covered the higher theof your personal auto insurance a bit.
cost. Some insurance companies will require that