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Many people are aware that HGV insurance exists, but not many know what is actually covered in and HGV policy. Heavy goods vehicles are seen all the time on the roads, but how many actually ever think about the kinds of insurance a driver or company has when they see a lorry pass by. Lorry insurance can cover more than just accidents. Since lorry theft is such a big problem, many truck insurance companies include the option to insure against theft. One statistic shows that ten HGV’s are stolen in the UK each day. That is a big problem and fleet owners and independent drivers need the right kind of HGV insurance, otherwise they could be financially ruined.

Some types of lorry insurance cover the contents carried on the truck. This is sometimes required by the companies contracting the HGV fleet or driver. Usually this is done when companies are shipping a large quantity of high cost goods and want to ensure that they don’t lose everything in the case of a dodgy incident. This type of insurance is typically called Goods in Transit insurance.

Of course each type of insurance has the costs associated with it. The cost of the insurance is paid on a specific periodic basis, like monthly, quarterly, semi-annually, or annually. This paid amount is referred to as the premium payment for the insurance policy. Depending upon which types of coverage are chosen, the costs will vary. The more options covered the higher the cost. Some insurance companies will require that the lorry driver pass certain requirements in order to be insured.

These requirements may include drug tests, alcohol tests, driving experience, minimum age, and a clean driving record for a specific length of time. There are some types of cargo that insurance companies will not insure. This can be things like explosives, bio hazards, or dangerous chemicals. Insurance companies are in the business of making money, they charge people and companies premiums based upon the perceived risk to the insurance company. If the risk is high, so is the cost. Sometimes, the risk is so high the insurance company doesn’t want to take the chance and will refuse coverage.

Of course truck insurance will cover the basic idea of accidents. This is the type of insurance that most are familiar with. Accidents do happen, but if the accident involves a large vehicle, like an HGV, then the amount of damage can be far greater and the repairs can be more costly. For this reason, HGV insurance is typically much more expensive than regular auto insurance. Again, the risk to the insurance company is higher and therefore the cost is higher to the policy holder.

So the next time you see a big lorry pass you by, think about what it might be hauling and how much the driver of the fleet owner has to pay each year to insure the truck. That might help explain why the cost of goods at the market is so high and maybe make you appreciate the cost of your personal auto insurance a bit.