Insure a Cheap Truck
Insure a Cheap Truck
What does it cost to insure a cheap truck for new haulage venture?
Prices for new haulage business insurance or start ups can vary enormously and is partially dependent on post code, a cheap truck does not always mean cheaper insurance. Other factors may include the age and experience of all the drivers. For example if a driver is under 25 years old and is young and has just had is HGV Class 2 licence then he will likely have to pay more than a driver who is over 30 years and has had his licence for 5 years driving both Class 1 and Class 2 vehicles. Also the levels and number of claims in the past five years will have a bearing on the price. Also if a truck in not cheap for example is worth over £100,000 then there will be additional loading for the policy. This is because the HGV is a theft attractive item and if it were stolen then the insurer would have to pay out the full trade value of a truck back to the policy holder.
In answer to the question the price is between £4000 and £8000 per year depending on the value / location etc. There are a few things than can help reduce the price if you are a new start up or new venture haulage company . You could get front and rear cameras fitted to your cheap truck and also a tracker would be a useful deterrent against theft. Time after time we have seen trucks or HGV s from the haulage industry stolen that do not have a tracker fitted as standard. It is vital as a new set up that you keep the claims to a real minimum and in so doing you will maintain a low level of premium in the future. Switching from any driver to named driver will also help lower costs.
If you are looking for a cheap truck or lorry to get started and want haulage work then you need to ensure the truck is very reliable and does not breakdown .It is advisable to compare rates and see what insurance comparisons can be found. Cheap HGVs can be found when they are coming off a fleet and they will have been on contract for 3 or 4 years. Once they have done this amount of time on the road they may well have done 200,000 or 300,000 kms and therefore they will have deprecated a lot in price. Therefore they are less of a risk to insurers for theft and damage and thus the insurance premium cost will be cheaper. The post code element is largely fixed and will be determined by the operator’s licence post code with VOSA.