Kompare

Insurance basics

HGV insurance explained

What HGV insurance is, the main types of cover for heavy goods vehicles used in business, and the basic legal requirement to insure vehicles on UK roads.

HGV insurance is insurance for heavy goods vehicles (HGVs) used for commercial purposes, such as lorries and large goods vehicles. It is designed to protect the owner against financial loss if the vehicle is damaged or stolen, and against liability for injury or damage caused while the vehicle is being driven.

What HGV insurance usually covers

HGV insurance policies generally include the following types of cover.

1. Road risks

This covers the HGV while it is driven on public roads. Depending on the level of cover, it may include accidental damage, theft and fire.

2. Goods in transit

This covers the goods being carried, for example against accidental damage or theft while in transit. Haulage contracts often specify the level of goods in transit cover they expect.

3. Liability cover

This covers the HGV owner if a driver accidentally injures someone or damages third party property. Public liability can also be relevant when loading and unloading at customers' sites.

4. Personal accident cover

This covers drivers, and in some policies passengers, if they are injured or killed in an accident.

Choosing the right cover

The level and type of cover depend on the policy you choose and your needs as an owner or operator. Things that usually affect cover and price include the size and weight of the vehicle, what it carries, where it travels and the experience of the drivers. It is worth looking carefully at what different policies offer, not just the price.

Every vehicle used on a public road in the UK must have at least third party motor insurance under the Road Traffic Act 1988, and HGVs are no exception. Goods vehicle operators may also need an operator's licence; see GOV.UK for the rules.

If you run several vehicles for your business, our page on fleet insurance explains how cover for a number of vehicles works.

Kompare doesn't currently offer quotes for insurance for individual HGVs.