For transport operators, vehicles are the business. A single accident can mean repair bills, a third-party claim, damaged cargo and days or weeks off the road. Commercial motor insurance is designed for vehicles used for business purposes, from a single ute to a national fleet of prime movers.
Who Needs Commercial Motor Insurance?
- Owner-drivers and subcontractors
- Freight and logistics companies
- Tradies with utes and vans
- Couriers and delivery businesses
- Tipper, tanker and refrigerated transport operators
- Businesses with company cars or mixed vehicle fleets
Types of Cover
- Comprehensive: Covers accidental damage to your vehicle as well as damage you cause to other people’s vehicles and property.
- Third party property, fire and theft: Covers damage you cause to others, plus fire and theft of your vehicle.
- Third party property only: Covers damage you cause to other people’s property only.
Remember that compulsory third party (CTP) insurance, which covers injuries to people, is separate and is generally included with registration in Victoria through the TAC.
Important Extras for Transport Businesses
- Goods in transit: Covers the cargo you carry against loss or damage.
- Hire vehicle or replacement vehicle cover: Helps keep you operating while your truck is repaired.
- Towing and recovery costs: Heavy vehicle recovery can be very expensive.
- Signwriting and accessories: Covers fit-outs, toolboxes, cranes and refrigeration units.
- Finance gap or agreed value cover: Useful if the vehicle is financed.
- Windscreen cover.
Single Vehicle vs Fleet Insurance
Businesses with several vehicles may benefit from a fleet policy. Fleet insurance can simplify administration with one renewal date and one policy, and may offer more flexible terms, such as automatic cover for newly acquired vehicles and any authorised driver.
What Affects Your Premium?
- Vehicle type, value and age
- Driver ages, experience and licence history
- Claims history
- Type of goods carried and radius of operation
- Where vehicles are garaged overnight
- Safety technology such as telematics, dashcams and fatigue monitoring
How to Manage Your Commercial Motor Premiums
- Invest in driver training and keep training records.
- Use telematics and dashcams to improve safety and support claims.
- Maintain vehicles to a high standard and keep service logs.
- Consider a higher excess if your cash flow allows.
- Report incidents promptly and accurately.
Keep Your Business Moving
Gidda Insurance Brokers has a dedicated transport account management team that understands the realities of running trucks, from owner-drivers to large fleets. We compare options and design cover around your operation. Explore our commercial vehicle insurance services or request a quote on 0491 999 555.
This article contains general information only and does not take into account your objectives, financial situation or needs. Before making a decision, consider whether the cover is appropriate for you and read the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD). Gidda Insurance Brokers Pty Ltd is an Authorised Representative (No. 001307383) of Regis Licensing Pty Ltd ABN 71 130 820 727, AFSL 338156.
