Car insurance for commercial vehicles

If you own a business or organisation then chances are that you use vehicles in some way. Whether you offer company cars to employees or need them to transport goods or services, vehicles can be a valuable asset but, thanks to high car insurance costs, an expensive one too.

Commercial vehicles certainly play their role in accident figures – they are involved in around 30 per cent of serious and fatal accidents on UK roads. Indeed according to car insurance companies, commercial vehicles carry a far greater risk than conventional alternatives.

For example, you could take out car insurance for a vehicle for personal use, and then take out insurance for the same vehicle for commercial purposes. The latter would almost certainly be subject to higher premiums. So what causes this contrast?

Why are commercial vehicle car insurance premiums so high?

There are many reasons why it’s difficult to find cheap car insurance for commercial vehicles – beginning with the length of time they spend on the road.

Most conventional drivers will be on the road going back and forth to work twice a day and on occasions to run errands in the evening. By contrast, commercial vehicles can be on the road all day, especially if their purpose is to transport goods. Clearly the more you’re on the road; the more likely you are to have an accident.

Nevertheless, car insurance premiums will still be higher for commercial vehicles even if their use is infrequent. This is because they are disproportionately targets for crime because they tend to carry goods. For example, a van loaded with consumer goods could be worth thousands to thieves. It is estimated that around 900 commercial vehicles are stolen every week in the UK – costing around £152 million every year.

There is also evidence to suggest that commercial vehicles are not driven particularly well. Even though most full-time drivers will take advanced driving courses, as they are driving a vehicle that does not belong to them they tend to be more care-free on the roads. Car insurance companies take this into account and penalise the drivers and owners of commercial vehicles with higher premiums.

Company cars are also subject to a similar theory – the drivers don’t own the cars outright and therefore take less care on the roads.

How can you reduce commercial vehicle car insurance costs?

Certainly securing cheap car insurance for commercial vehicles isn’t straightforward but there are savings to be made.

The first tip, as with any car insurance policy, is to shop around. Use a price comparison tool to compare car insurance quotes. If you own a fleet of vehicles why not contact the insurers to ask if they are willing to offer a reduced premium for insuring a group of vehicles?

Take measures to enhance the security of your commercial vehicles. Park them in a garage or secured building overnight. Also look to fit approved alarms and immobilisers. As commercial vehicles are prone to theft, any measures you take to improve their security will earn rewards from your insurer.

Do all you can to improve the skills of your driver too - if the car or van is being driven by a qualified driver who has passed an advanced driving course it should help you earn lower premiums. You should also examine the driving history of any potential employees and ensure that their criminal record is clean. Limiting the number of named drivers on each vehicle should also cut your costs.

Consider tying in car insurance with other services too - you could save a substantial amount on breakdown cover if you take out it and car insurance together.

Are there specialist car insurance policies for commercial vehicles?

There are many specialist insurers who offer quotes for business vehicles. For example, Towergate insurance, which supplies quotes to Norwich Union, offers quotes for taxis, minibuses and agricultural vehicles. There are many other leading insurers who will offer quotes for business cars including Quinn Direct, More Than and Swinton.

When it comes to choosing the right car insurance you should consider the level of cover available. If you are reliant on your vehicles for business needs, how quickly does an insurer guarantee repairs and do they offer a courtesy car? Is there a 24hr helpline and is emergency recovery included?

Price is vital too - securing cheap car insurance is crucial particularly as you may have a number of cars to insure. So shop around with a car insurance price comparison tool and contact any additional insurers directly that may not be included in the list of quotes to make savings.