Business vehicle insurance explained

Commercial vehicle insurance covers vehicles used for work purposes. This can be an estate agent’s company car or a small van used by a plumber.

Like a standard car insurance policy, commercial vehicle insurance provides cover if you’re involved in an accident or if your vehicle is stolen.

There are extras to consider too. A tradesman, for example, can insure their tools through some commercial vehicle car insurance policies that cover theft from their van.

Commercial vehicle insurance is typically for those who need to insure a single vehicle. A logistics company, for example, which owns a convoy of trucks would be better suited for fleet insurance.

Since commercial vehicle insurance is a form of motor insurance, there are the following levels of cover:

By law, all vehicles on the road must have at least third party cover. This includes vehicles used for commercial purposes.

Third party cover covers any damage you cause on the road to another vehicle – that’s it. There’s no payout for damages to your own vehicle or if it is stolen.

This next level of cover includes cover for damages caused to third parties, if your vehicle is damaged by fire, or if it is stolen. Again, it won’t pay out for damages to your own vehicle if it is caught up in an accident.

Comprehensive cover includes all the previously mentioned benefits and also pays out if you were at fault in an accident. Some providers include add-ons for this type of insurance, such as windscreen repair damage or travel to the continent.

Different companies have different needs and requirements. This means they’ll be looking for different things in their commercial vehicle insurance policies.

A business which does a lot of trading with the European Union (EU) might consider cover south of the English Channel. However, if your business is based in the UK then perhaps this need wouldn’t be so pressing.

Likewise, a taxi company might wish to look at a policy which incorporates public liability insurance for their passengers.

Finding the perfect tailor-made insurance can seem a daunting place to start. So, make use of our chart above to compare the best commercial vehicle insurance policies on the market.

Not everyone needs commercial vehicle insurance.

If you use your personal vehicle occasionally for business purposes then you could still have it insured by a standard car insurance policy.

However, before taking out your cover it is important to let your insurer know how frequently you’ll use the vehicle for business. As with all insurance policies, if you lie then you’ll invalidate a potential claim in the future.