How It Works
In the UK you must, by law, insure your legal liability
for injury to others and damage to their property arising
from the use of vehicles on the road. This is known
as third party insurance. In addition to this basic
level of cover policies typically include fire and theft
cover.
Fully comprehensive cover includes cover against damage
to your vehicle. Cover is usually unlimited in respect
of your liability for injury to other people but may
have a limit for damage to their property. Your policy
wording will identify all terms, conditions, limits
and excesses.
If you are using your personal vehicle for both private
and businesses purposes you must inform your insurer.
They will want to know details of the goods you transport,
the drivers to be covered, the duration of use and various
other details. You may be able to simply extend your
existing policy to cover occasional business use.
If your vehicle is used predominantly for business
purposes, for transporting goods or is actually owned
by the company you will probably need a specific commercial
vehicle policy. Most businesses opt for fully comprehensive
cover and insure for any driver over the age of 25 years.
If you own more than five vehicles, a fleet policy
may be arranged. The claims experience of your fleet
will provide the main rating factor in assessing the
cost of the policy.
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Fleet
Insurance Guide
