Reducing the cost of recovery truck insurance
If you own a car recovery business or vehicles such as a breakdown truck, lorry, or trailer, you will need to take out a recovery insurance policy. This will ensure your business is protected financially and legally against any unfortunate accidents or claims.
It can be hard to know which policy is best for you and your recovery business, so we'll explain the ins and outs of recovery truck insurance, including what types of cover you can get included in your policy, as well as top tips to reduce costs.
What is recovery insurance?
Recovery insurance is a type of motor trade insurance that is designed for breakdown cover providers. It can protect vehicle recovery businesses against liability claims or other types of financial loss in case of accidents or legal claims made against the business.
You will need to take out some form of recovery insurance if you own or run recovery trucks or a recovery business. You can insure one vehicle individually, or cover vehicles under a company-wide insurance policy, which can also include add-ons like breakdown cover.
What does recovery car insurance cover?
Road risk cover
Road risk cover is an essential, legal requirement for any business which requires the driving or riding of vehicles that legally belong to someone else.
This cover essentially allows you to drive cars or other vehicles which don't belong to you - which is likely to happen frequently to companies providing breakdown assistance.
Although it may seem ironic, even breakdown providers and recovery vehicles sometimes have technical problems, so it's a good idea to take out a breakdown cover policy for your recovery truck or vehicle. Having breakdown insurance will provide roadside assistance to your recovery vehicle.
Public liability insurance
Public liability cover protects your business against any claims which are made against it in court by a member of the public.
This could include accidents that happen on your business premises or claims made against your employees, as well as accidental damage made to someone else's property, such as if their vehicle breaks whilst in your care.
Employers liability insurance
Employers liability insurance is a legal requirement for any business that employs members of staff, even if that is only on a casual basis, such as self-employed, voluntary or part-time employees.
Having this policy in place will provide cover against any claims made against you by an employee, such as if they suffer a work-related injury or develop an illness related to their line of employment.
Carriage of vehicles cover
This policy insures the vehicles you recover during transportation, meaning that your business is covered against any accidental damage to customers vehicles or in the case of unfortunate road accidents.
Tools and equipment cover
Having a tool and equipment policy add-on will provide instant cover against any loss, theft or damage to the tools which you use as part of your day-to-day business. This includes whilst out on the road or on your business premises.
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What types of recovery insurance is available?
Comprehensive cover is the most all-inclusive policy available on the market Typically, fully comprehensive insurance will cover the full cost of repairing any damage to your own vehicle, as well as insuring against any third-party damage in the event of an accident: even if it was your fault.
Comprehensive cover policies can vary in terms of additional add-ons which can be included and you may want to add some of these to your plan: for example, if you wanted a car breakdown policy.
Third-party, fire and theft cover
This type of plan protects you against any damage which you cause to other people's vehicles in a road accident, as well as any damage to your own vehicle through a fire, or if your vehicle is stolen. Crucially, it provides no personal cover, and any damages to your personal vehicle won't be covered by this type of policy.
Third-party cover is essentially the same as third-party, fire and theft except, you guessed it, it won't cover you against any fire or theft damage to your vehicle.
This type of policy is the most basic type of insurance plan and is the minimum legal requirement for vehicles on the road in the UK.
How to lower the cost of your vehicle recovery cover
If you're concerned about having big premiums for your vehicle recovery plan, there are a number of things you can do as a business to help keep costs as low as possible:
- Carefully consider the type of plan you need. Some policy additions are quite specific (such as having European road insurance) and may not be risks that your business ever encounters.
- Have age limits and clean licenses. Insurance providers are known to charge younger drivers a higher premium, so it might be worth only hiring breakdown recovery drivers who are over 25. Also, to keep costs low it's crucial that all named drivers on your policy have a clean license, with no previous claims or points.
- Ensure your business premises and vehicles are secure. This can include installing CCTV, having working alarm systems, coded security gates, and installing driver dash cams. Additional measures such as these will reassure your insurance company that you're doing all you can to protect your business from damage and theft.
- Pay annually for your vehicle recovery policy. If you pay monthly for your insurance plan, you are likely to be charged a higher overall annual rate. Instead, if you pay for your policy annually in one lump sum, you are likely to save money and get a better deal.
Why is having a recovery policy important?
As well as certain elements being required by law, recovery insurance protects your vehicle recovery business from any unfortunate accidents, claims made against the business or loss/damage to property, be that yours or your customers.
As a business, it’s a really good idea to have a good, comprehensive policy – for peace of mind and the security of your firm.
How do I switch my motor trade insurance policy?
In order to switch policy, you'll need to wait until your plan with your current provider expires, in order to avoid paying any hefty early cancellation fees.
Once this contract has ended, you're free to shop around for a new deal! To start, why not use our comparison service to see what deals are available to you and your business, and compare the cost of different policies. You can then contact your chosen new provider directly to get your new policy.
Compare recovery vehicle cover with Utility Saving Expert
Before you take out a new vehicle recovery policy, make sure you compare prices with Utility Saving Expert!
It's really important that you compare prices before committing to a policy so you can find the right insurance for your business. You can save on your next plan in just a couple of minutes with our free, impartial comparison service: simply complete one short form to compare plans from up to 16 different top insurance providers.
Frequently asked questions
The cost of your policy will vary depending on a number of factors that are unique to you and your business, such as:
- The size of your business, including the number of vehicles you need to insure, and the number of employees.
- The location of your business premises: policies will take into consideration crime and accident rates in your local area.
- The type of add-ons you decide you need in your policy.
Some elements of a recovery vehicle insurance policy are required to have by law, such as road risk cover and, if you have employees, employer liability insurance. These policies can be included in your insurance bundle, to make sure you're following all legal guidelines.