No Claims Bonus: See How To Save on Your Insurance

No claims bonus (NCB) is one of the best ways to save on your car insurance. You can save up to 30% off your premium with just one year of no claims.

If you drive claim-free for some years, the discount could reach as much as 75%.

What Is A No Claims Bonus?

You can start accumulating NCB for every year that you have insurance without making a claim. The key here is driving defensively – what matters is whether you make a claim, and not whether it was your fault or not.

Example 1:

It’s a sunny day, and you are driving on a highway when suddenly an uninsured driver hit your car. Given that it is not your fault and you made a claim, because of this, you may not be earning an NCB for that year. In addition, your existing NCBs will get a step back, and in some cases, go back to zero.

Example 2:

You were sleeping in the middle of the night, and your car is parked in the streets of New York City. Upon waking up, you discovered that your car had been stolen and you made a claim, your NCB, therefore, could be lost.

How Do I Earn A No Claims Bonus?

Car, van, commercial vehicle, tractor and on all types of insurances like third-party, fully comprehensive, and third-party, fire, and theft will earn you NCB.

SEE ALSO: Van Insurance: Everything You Need to Know

Depending on your insurer, you can earn an NCB for up to nine years. Although for most insurers, they will only allow you to earn for up to five consecutive years.

How Much Can I Save From An NCB?

Insurers will reduce your premiums by a set percentage that is determined by the number of years you are driving claim-free. Discounts vary greatly from one insurer to another, but the average discount scale is usually:


There are other ways to reduce the costs of your car insurance policy; you can read our guide, 10 Easy Ways to Reduce the Costs of Your Car Insurance for more information.

How Can I Protect My No Claims Bonus?

Some insurance companies offer opportunities to preserve your bonus. A car insurer may be able to redeem all costs from another insurer where a claim is not your mistake. In this case, you wouldn’t lose any claims discount. It is best to talk to your chosen insurer about their policy as this can vary greatly.

In most cases, if you do not have a policy in your name for two years, your No Claims Bonus will disappear.

Can I Use My NCB On Another Vehicle?

Yes, you can. In the insurance industry, they call it “Mirrored No Claims Discount,” it is used by a person who has earned a bonus on a car policy and decided to buy another vehicle. To get a discount on his insurance, that person can then “mirror” their accumulated NCB to the vehicle he just bought.

Can Named Drivers Earn A No Claims Discount?

With a standard car insurance policy, named drivers do not earn their own No Claims Discount. However, some companies will allow them to earn an NCB. This is brilliant if the named driver wants to go on with their own car insurance policy later.

Why Do I Need Professional Indemnity Insurance?

Businesses need to make sure they are protected against claims brought against them by third parties. Say a customer has an accident such as a slip, trip or fall on your premises and sustains an injury, your business would be liable for compensation if it is proven that you were in some way to blame.

Public Liability insurance will help protect you in this regard, providing a level of protection in case of claims brought against you for injuries and damage to equipment sustained on your premises by third parties.

But what about those instances where damage has been done on an intellectual level?What about those pieces of advice you gave which led to a company suffering financial loss or damage to their reputation as a result?

That’s where Professional Indemnity Insurance comes in, providing a safety net for your business against any advice you may dispense, or helping to cover against any mistakes you might have made along the way which eventually led to damage to your client and their business.

What Does PI Insurance Cover?

Professional indemnity insurance helps cover your business against losses sustained by third parties – usually clients or customers – who may have suffered losses as a result of your advice, either on a financial level (loss of profits) or on a reputational level (downturn in business as a result of bad press).

Who Should Have PI Cover?

Almost all businesses should have some form of PI cover, especially if their work involves dispensing advice as a service. This can include areas such as:

  • Finance – financial advisors, solicitors, brokers, accountants
  • Property – estate agents, letting agents, mortgage advisors
  • Management – management consultants, leadership advisors
  • Technology – computer solutions, IT firms
  • Recruitment – recruitment consultants
  • Services – marketers, design consultants
  • Education – teachers, private tutors

Indeed, any professional who is in the business of dispensing advice, either on a financial level, design level or even on a physical level – in the case of a fitness instructor – is potentially liable for being sued as a result of poor advice which could hurt the reputation of their client and their business.

What Kind Of Situations Can It Cover?

Professional indemnity insurance can help cover your business against situations where your advice may have led to your client or customer suffering harm or financial loss:

Example 1:

Say you’re a florist and you have advised a customer on which flowers would look nicest in a bouquet for their partner, and the customer is pleased with the choice and makes the purchase.

Later on, your customer comes back and you find out that their partner was, in fact, allergic to the flowers you advised them on, which led to a stay in hospital as a result said allergic reaction.

Because you advised them which flowers to buy, you could find yourself liable – even if you were not to know at the time the said allergy – the customer could bring a claim against you as it harmed them on a physical level.

PI insurance would protect you against a claim like this one, where the customer may seek compensation for a stay in hospital which led to a loss of income as a result of your advice during the transaction.

Example 2:

A design agency has taken on the task of rebranding a company’s branding – everything from a new colour scheme to a new mascot and slogan – advising them on the best direction going forward and taking to social media platforms with a new design and a new voice.

All seems fine to begin with, but shortly after everything goes live, the company finds itself being ridiculed on social media, and after a bit of research, it is discovered that there has been a reaction to the slogan or mascot, leading to reputation damage and dip in sales.

Because the company’s reputation and public image took a hit, they could then sue the agency on the grounds of reputational damage. The design agency would have to have some form of PI insurance in place to help cover the costs of any compensation they may have to pay out.

How Much Should I Insure For?

PI insurance policies allow you to insure your business up to a certain amount and have two levels of cover, both of which affect any payouts:

  • ‘Any one claim’ – this would help cover any payments up to the full limit of your cover for each claim made against you. Say you insure for up to £100,000 a year, your PI insurer would cover the cost of more than one claim during that period, provided the amount didn’t exceed the limit.
  • ‘Aggregate’ – on the other side, aggregate PI insurance would only pay up to a certain amount. Say you had a cover of up to £100,000 but you get two claims of varying amounts which take you over your set limit, you’ll have to cover the remaining amount yourself. For example, your business gets 2 claims of £75,000 each on a PI insurance limit of £100,000 would take the total to £150,000, leaving your business to cover £50,000 of this out of your own pocket.

Professional indemnity insurance is an important policy to have when it comes to businesses who are in the industry of dispensing advice. Anything can happen and some advice can be bad, so it’s always best to prepare yourself for such possibilities.

Why Should I Buy An ASU Policy?

It can be a pretty tough time when you’re out of work; money worries are likely to creep in as you try and figure out how far your savings can take you in the absence of any income.

To help ease the burden when you are unemployed, it’s important to make sure you are protected against the unexpected to ensure that you and your family are covered.

And this is where Accident, Sickness and Unemployment (ASU) insurance can help, providing an extra level of protection in the event of loss of income as a result of one of those circumstances.

What Is ASU Insurance?

ASU stands for Accident, Sickness and Unemployment, and is an insurance that helps to protect you should you be affected by any of the following:

  • You become injured, and as a result are unable to work
  • You become ill, and as a result are not able to work
  • You lose your job through no fault of your own and are unable to provide

ASU insurance is essentially a ‘just in case’ insurance, providing protection if you are concerned as to whether you’d be able to cope if you were to fall ill or lose your job suddenly and be unable to provide for yourself and your family.

Who Chooses How Much I Receive?

ASU insurance essentially covers you for the sum of your monthly outgoings such as utilities and also your mortgage costs. A sum is worked out – usually about 60-65% of this total – and even though you are able to set the amount yourself, the percentage is unlikely to change.

Remember as well that, in the event of a payout, this will usually take a month to process, so don’t expect it to be an immediate payment.

How Long Can I Set A Policy For?

ASU policies are designed to be short-term solutions, so you are only able to claim for a maximum period of between 12 and 24 months.

While they can be useful to set up for the short term, there are a few rules about setting up a policy, and providers are quite strict in which circumstances they pay out, this is to avoid the risk of insurance fraud.

What Exceptions Are There?

Insurance providers may not offer you ASU insurance cover in the following circumstances:

  • You take out a policy in the knowledge that you are soon to be made redundant or sacked
  • You have existing medical afflictions such as backache or conditions such as stress
  • You are self-employed
  • You have worked at your current company for six months or less
  • You are over-65

Providers are very strict in who they cover, so those who want to take out cover in anticipation of a redundancy or loss of employment are not likely to be able to get covered.

Check with each broker about any exclusions they might apply with regards to your claim, as these can differ from company to company.

Why Should I Get A Policy?

ASU policies can help provide extra peace of mind in the event of unexpected circumstances; this could be seen as an excellent short-term policy to take if you have not much in the way of outgoings or significant debts.

Many of us will worry about what may happen as a result of ourselves or another breadwinner being out of work as a result of unexpected circumstances.

Taking out some form of policy such as ASU insurance on a short-term basis can be a good investment as it can help take a weight off your mind, much like with policies such as life insurance.

Do Your Research

There are a number of brokers who offer ASU insurance, and when searching for a policy, it’s best to get quotes from a few of them, many will allow you to cover with monthly payments.

Brokers may differ on the period between a claim being made and the payout date, it can usually take a month for such claims to clear but it’s always best to double check with multiple providers to find out if yours will vary.

Remember as well that ASU policies are very time sensitive, both at their inception and towards the end of your cover, so double-checking the details of your policy is always a good idea.

Why Do I Need Public Liability Insurance?

Whether you work from home as a sole trader, own a small business, or have a large company with many employees, you need to make sure that you are protected against claims brought against you by those who visit your premises.

That’s where public liability insurance comes in; this insurance is important to have for any business as it offers a level of protection against potential problems, such as trips and falls which could lead to injury or damage to equipment while on your premises.

What Is Public Liability Insurance?

Public liability insurance covers you against claims made by members of the public or clients who have suffered personal injury or property damage as a result of visiting your premises.

Public liability helps your business cover compensation costs brought against you by third parties and clients.

Example 1: Client

You have a potential client visiting your premises, and they have brought their own equipment with them. While at your office, they trip over a loose network cable and fell, and dropped their laptop in the process, the impact of which leaves the equipment broken and unusable.

If the client were then to put in a claim against you for the cost of repairing their equipment due to negligence on your part, public liability insurance would help to cover the cost of replacements or legal fees.

Example 2: Contractor

You have hired a plumber to carry out work at your premises, and because of negligence in their work – such as a loose valve – it led to your property sustaining water damage and loss of equipment. The contractor would have to have public liability insurance to cover them should you make a claim against them.

What Is Employer’s Liability Insurance?

Aside from public liability insurance, business owners are also advised to take out what is known as Employers’ Liability Insurance. While public liability insurance helps to cover customers and clients, employers’ liability helps protect you against claims made by your own employees in the event of injuries sustained while working for you.

Do I Need Public Liability Insurance By Law?

While public liability insurance is not a compulsory insurance for businesses to have, if you interact with members of the public or have clients visiting your premises daily, you will need to make sure they are covered against any unexpected circumstances.

Having public liability cover can help give your business peace of mind, for you will be covered in the event of a tragedy. Take a look at our in-depth guide on Who Needs A Public Liability Insurance for more information.

How Much Can I Cover For?

Public liability policies can range from around £1m up to £5m, and depending on the insurer you go with, you will usually have a choice as to how much cover you want to insure yourself – which will depend on your business area and the size of your company.

Can My Business Apply For PL Insurance?

Public liability insurance can be taken out by any business from a sole trader or independent, all the way up to a large corporation. PL insurance is essential for those businesses that are customer-facing or those who welcome clients into their premises to do business.

By making sure you are covered against any potential accidents or property damage sustained by your customers and visitors, you can save money and hassle in the event of a claim.

How Can I Arrange Cover?

Work out how much you can afford for some public liability insurance, then seek out and speak to a specialist broker who deals with public liability insurance. Depending on the size of your business, you can negotiate levels of excess and the level of cover you’ll need.

What Will This Cover?

Your PL insurance policy will cover aspects such as:

  • Personal injury sustained by customers and clients on your premises
  • Damage to property as a result of negligence on your premises
  • Hospital and medical bills incurred as a result of an injury or incident at your premises
  • Damage to property as a result of poor workmanship by your staff

While public liability insurance is not mandatory, it can be useful to have to cover your business against unfortunate incidents. It’s better to be safe than sorry in this case, so taking out some PL insurance can be a wise investment which can offer a level of protection for the future of your business.

Insuring A Modified Car

Modified cars are popular with enthusiasts who like to beef up the performance of and change the design of their cars to impress or to improve performance on the track. Popular with boy racers as well as track day enthusiasts, modified hot hatches and Japanese vehicles can be exhilarating to drive, but expensive to insure.

What Is Considered A Modification?

A modification is a change made to a vehicle from its original factory settings to improve the performance or make the vehicle look sportier and pleasing to the eye, often for their fellow enthusiasts.

There are many types of modifications that can be added to vehicles, and these can be split into two sections; Performance and Functional, and both of which will have an effect on your insurance premium if you’re not careful.

What Is A Performance Mod?

A performance modification will change the way your car initially operates, either under the bonnet or on the bodywork of your vehicle.  Common performance modifications can include:

  • Alloy wheels – this can involve increasing the size of your wheels and adding new designs
  • Sound systems – some will make changes to their audio systems within the car, adding extra speakers and fitting a different model of radio system
  • Engine tuning – usually used to improve the performance of a hot hatch car
  • Body Kits – including spoilers and body kits
  • Paintworks – including decals, respraying, badges and specialised paintwork
  • Brake kits – used to improve performance, usually by those who own Japanese cars, which might have different specifications and need to be modified for UK roads
  • Suspension kits – used to stiffen up suspension to improve cornering
  • Tinted windows
  • Neon lighting – used for aesthetic purposes, usually installed on the underside of a car

Tuning kits are popular amongst enthusiasts who want to add a little more power to their rides, either for racing or merely to show off, and are a common addition to Japanese cars and those known as hot hatchbacks.

What Is A Functional Mod?

Functional modifications are those which are used to aid drivers in some way, either to assist with driving, navigation or to allow for better access. Useful modifications can include features such as:

  • Sat navs
  • In-car phones
  • Parking sensors
  • Roof racks
  • Towbars
  • Air conditioning
  • Sunroof

Features that help to improve access for users of wheelchairs; such as wheelchair clamps, lifting equipment, ramps and hand controls can also be classed as functional modifications and will need to be declared to your insurance company upon fitting.

What Should I Tell My Insurance Company?

You must let your car insurance provider know of any changes that you make to the vehicle immediately after making them, especially if they are those which change the specifications from those of the original factory model.

Depending on what changes you make you might find yourself having to pay a little extra on your car insurance as a result, so it could be worth thinking about whether you really can afford to fit that body kit or invest in some larger rims.

Mods that increase engine power and even change the paintwork can be seen as high-risk, as can the addition of technologies including sat navs and stereo systems. Insurers will not look kindly on some modifications as they are perceived to be at greater risk of theft due to the cost of some of the equipment, and so could lead to a higher insurance premium.

How Can I Bring Down My Premiums?

As with regular car insurance, experience can count when it comes to lowering your insurance premium. By driving carefully and accumulating some No Claims Discount, you can help reduce the cost of your premium as you’re showing yourself to be a safe driver.

It is usually the younger drivers who make a hobby out of modifying their vehicles to show off to their mates and at motor shows. Combined with a perception that they are a greater risk of having an accident as a result of their inexperience, many will find their high-performance car premiums to be sky-high as a result of the modifications to their vehicles. If you have a high-performance car, you may check our detailed guide on Powerful Cars and How to Insure Them.

While it may be more expensive to add modifications to your car, there are also some which can be seen as aiding driving, including parking sensors and tow bars. If you’re driving slower than the average driver, you could be looked upon more kindly by your insurer.

How Best To Save Money?

When searching for a hot hatch insurance quote for your modified car, it can be worth looking into several options when it comes to insurance, run searches on some providers and be as honest as you can when it comes to describing what work you have done to the vehicle.

Powerful Cars And How To Insure Them

Sports cars have long been a symbol of wealth and status, particularly in the world of celebrity, but you don’t necessarily have to be a celebrity to enjoy driving a more powerful motor.

High-performance cars are usually classified as being higher-end models of traditional makes of car, often with added features for extra power and torque, or a sports mode with differing braking systems and suspension to enhance the driving experience.

Manufacturers are always trying to one-up each other when it comes to attracting buyers, combining sleek looks with power under the bonnet. Enthusiasts of high-performance cars will use these vehicles for everyday use as well as modifying them further to increase speed or handling, electing to drive them occasionally on track days.

Whatever your reasons for owning a performance car, be it an everyday runaround or occasional track car, insurance is an essential part of owning such a vehicle, and it can be an expensive business if you’re not too careful.

Ownership And Insurance

Because of the increased specifications of vehicles such as performance cars and those with built-in ‘sports’ features, high-performance cars will have more powerful engines and higher spec brakes to cope with an increase in speed.

Because of the powerful nature of these vehicles, insurers may look upon them as a high risk to other road users, and as a result, you could find yourself paying a sky-high premium. But there are a few things you can do to ensure that you can keep your premiums low and allow you to enjoy your motor.

To save on premium costs, see our detailed guide on How to Reduce the Costs of Your Car Insurance.

Age Matters

Younger drivers who want to drive more powerful vehicles will find it more difficult to get a decently-priced high-performance car insurance quote.

Depending on the type of driver you are can help to reduce your premiums in the future. By ensuring that you drive carefully and accumulate some No Claims Discount over many years, you can help to reduce your premium price.

Older drivers are usually seen as more trustworthy drivers, remember though that offences such as speeding can also add to the cost of your premium if you’re not careful. So while you might have more power at your pedals, be careful how you use it for it might end up costing you more on insurance in future.

ALSO SEE: Young Drivers – Reducing Your Premiums

Reduced Use For Lower Prices

If you intend to only use the vehicle for track days or occasional trips, speak with your insurance broker about the possibility of setting up what is known as an approved mileage limit on your policy.

An approved mileage limit essentially allows you to set a maximum mileage for the year, and providing you don’t exceed this limit you could find yourself saving on your premiums as a result. Every broker is different when it comes to offering this feature, so it can be worth double checking not just with your current broker but with others when it comes to your renewal.

Don’t Overly Modify!

High-performance cars are usually very powerful vehicles, designed for increased horsepower and handling to boot. Some enthusiasts like to make modifications to their cars – including body kits, tuning kits and new alloy wheels.

You will have to declare all modifications to your vehicle to your insurance company as you apply them, and applying too many aesthetic extras to your car could have an effect on your insurance policy, so bear this in mind if you’re thinking of adding to your already powerful vehicle.

Be Wary Of Being Tech Savvy

Be wary when buying gadgets for your vehicle as well, as electronic devices such as sat navs and stereo systems are usually a prime and easy target for thieves, so be sure to bear this in mind if you’re thinking of adding them to your vehicle.

However, some gadgets may also help you to reduce the cost of your premiums, especially when it comes to alarms, security devices or even parking sensors. By showing that you’ve taken steps to increase the safety of yourself and other road users you could stand a chance at reducing your premiums.

Watch Where You Park It

Locations can affect the price of your insurance premium, particularly when it comes to storing the car at night, and keeping it covered could be the best way of saving yourself some money.

Those kept on roads outside at night could be seen as being at a higher risk of theft, whereas those stored in secure parking spaces or secured compound, such as private parking at apartment complexes are seen as being of a lower risk.

If you commute using the vehicle every day and your workplace has a secure car park you may find yourself with further savings as your vehicle would be well protected during daylight hours.

Be Part Of A Club

It can be worth hooking up with fellow enthusiasts by finding a car club for your vehicle type in your local area. Not only could you chew the fat over your vehicles and pick up hints and tips for better performance, but some may even offer the chance to reduce your high-performance car insurance premiums.

High-performance cars may be expensive to buy, but by ensuring that you drive safely and are sensible with your ownership, you can help reduce your insurance premiums.

Young Drivers – Reducing Your Premiums

When it comes to car insurance, first-time and young drivers can find it particularly challenging to find an affordable car insurance policy. Because they are seen as a high risk due to their driving experience and their age, their insurance premiums will usually be much higher than those of an experienced driver.

So what can you do to help reduce the cost of your young driver’s car insurance policy and save yourself as much as you are able early on in your driving career?

Further Your Knowledge

Early on in your driving career, gaining additional knowledge can help to reduce your premium, so look into courses such as Pass Plus – which helps to teach more advanced driving techniques, such as driving on a motorway or at night time. Pass Plus courses can help to take a little off your premium, and investing in it early on could prove worthwhile in the long term.

While you’re learning to drive, you’ll be driving your instructors’ car, but after passing your test, you’ll have the responsibility of car ownership to worry about yourself. When starting off as a new driver, it can certainly be worth thinking about what you’re going to be wanting to drive.

Consider Your Car Model At First

When you’re first starting out on the road, consider the car you’re starting off with. Cars with smaller engines and that haven’t had any modifications put on them are going to be cheaper to insure, so consider starting a little more modest to start.

Ok, so it might not be your first choice or ideal car to start with, but by starting small, you can help yourself to save big on your young driver’s car insurance.

Consider adding extra security features such as steering wheel locks and alarm systems to help deter thieves and prove to your insurer that you have taken steps to protect your vehicle by making it less attractive to wannabe thieves.

ALSO SEE: 10 Easy Ways to Reduce the Costs of Your Car Insurance

Accumulate Some No Claims Discount

As your driving experience increases, your risk level will gradually drop, and you will find your premium reducing. By ensuring that you drive carefully and safely, you can begin to accumulate No Claims Discount which could help to reduce your premiums over time. But with the advent of technology, there are also other options for proving you’re a good driver, so why not try…

Tracking Yourself With Telematics

Telematic technology allows insurance providers to monitor drivers and, more importantly, their driving habits in order to determine the kind of driver that they are. While it might seem a bit Big Brother-ish, driving a car with a black box fitted in it could be useful for proving you’re a good driver.

Telematic black boxes are used by insurance companies to record certain aspects of your journey – including acceleration, braking, overall speed and cornering position – before feeding back the details using wireless technology.

Some policies will even allow you to view your current progress using a smartphone app, giving you the chance to check your progress while giving your insurer an idea of the type of driver you are, calculating your next policy price using the data you provide.

If you’re still not sure about using technology, turning to other people can help in the meantime, especially if you consider adding…

Second Drivers

While it may seem a little ‘uncool’ to add one of your parents to your insurance policy, this may help to reduce your premiums in the long term. By adding a more experienced driver with a good driving record as a second driver on your policy can help to reduce your costs by adding them as an ‘occasional driver’ – just make sure to not add them as the primary driver, or you may find yourself facing a fraud charge.

It can also be worth seeing about adding your car to a multi-car policy, especially if you still live at home with the folks. Multi-car policies can help reduce your costs by insuring them under the same household rather than as individual policies, and speaking of yourself as an individual it can be worth looking into a few details about yourself to try and bring down your premiums, so why not try…

Checking Your Job Title

If you are currently in work, have a think about your job title, and try running a quote through with several job titles that apply to you, you may find it cheaper for one than the other, but be sure to be honest as you can when applying.

Also think about how much cover you want to take out, so during the application process think about…

Checking Your Cover Level

Don’t just assume that getting a third party-only insurance policy is going to be the cheapest option, be sure to research into as many policies as possible before deciding on the one that’s right for you.

For some, taking out a fully comprehensive policy can be a cheaper option than just limiting yourself to a third party-only policy, but by taking steps to ensure you drive safely and are honest with your insurance company about your details you can save yourself a small fortune on your young driver’s car insurance policy.

Young drivers and first-time drivers can have a pretty raw deal at first when it comes to finding an affordable car insurance quote, but by taking action early on you can help yourself going forward.

By taking the time to make a few changes to driving habits, ensuring you drive safely, and taking the time to have a look at your policy options, young drivers could save themselves some money which could set them up for a long and happy driving career.

Insuring A Business Car vs Your Regular Car

When searching for or renewing your car insurance, you may notice a choice of three types of cover on the online form:

  • Social only (otherwise known as Social, Domestic and Pleasure)

SDP covers you as a named driver for those journeys you make that are not work-related. This type of covers you on your day-to-day drive, including trips to the shops and commutes to see friends.

  • Social and commuting

With this level of cover, you are covered for all aspects of SDP cover, with additional cover for your daily commute, ending either with you parking the car at a place of work or other secure car parks from which to commute further by train or bus.

So whether you pick up and drop off a work colleague en-route to the office or commute to a train station from which you continue on to your place of work, social and commuting cover will help to cover your vehicle during the commute itself and while it is parked up during your working hours.

  • Business use

Business use is taken out to cover your vehicle if you use it as part of your work, either to commute from different work locations, travelling to liaise with or delivering goods to customers. Business use can also extend to another driver on the policy, including your spouse, handy if you both work together.

RELATED: 10 Easy Ways to Reduce the Costs of Your Car Insurance

Which Should I Choose?

Your choice of cover can affect the price of your premium, particularly if you use your vehicle as part of your profession – such as a travelling salesman or delivery driver – and you may need specialist business car insurance as a result.

What Is Business Car Insurance?

Business car insurance differs from a regular car insurance policy because it is designed to cover work-related journeys only, these can include tasks such as:

  • Driving to visit customers
  • Driving to another of your company premises
  • Driving to attend a training day or an away day
  • Driving to the bank or post office in order to make payments

In the case of a travelling salesman or delivery driver, the level of cover may have to be extended to include commercial travel in order to insure the vehicle and the contents of it during transit.

Does This Cover Company Cars?

If you drive a company car, your company should be covering it with an insurance policy. It can be worth asking what level of cover you have on the car, if not just for your own peace of mind.

If you are covered on the vehicle by your company’s insurance policy you may not need to take out additional insurance on the vehicle. If you use your own vehicle as part of your everyday business use, then business car insurance is essential to ensure you are covered correctly while on the job.

What About If I Drive A Taxi?

Taxis and other ride-sharing services won’t be covered under a business insurance policy because they have a completely different set of risks as a result, and as such need a completely different type of insurance policy.

If you drive a taxi for a living, either for a fleet or as an independent through ridesharing apps such as Uber then you’ll need specific taxi insurance on your vehicle.

SEE ALSO: How Can I Become a Taxi Driver?

What Can Affect My Premium Price?

When applying for a business car insurance policy, your broker will want to know several important details, which may affect the price of your policy:

  • What work do you do?

Depending on what type of work you do can affect the price of your insurance policy, especially if it means you’ll be clocking up the miles by visiting customers or commuting between multiple sites.

Speaking of which, you may also have to answer:

  • How many miles a year will you cover?

If you clock up many miles during the year as a result of your work, it could mean a difference in your premium price. Long journeys throughout the year can lead to a higher premium, so it can be worth working out your average mileage throughout the year and ensuring as close to that as you can.

Be careful not to overinsure yourself, as while you may think you’re being careful by giving yourself a bit of extra leeway, you may be increasing the cost of your premium as a result. Be as accurate as you can in predicting your yearly mileage, even if the journeys change throughout the year as a result of having to travel to different locations – including to meet customers.

If you work between sites, try and work out the mileage between the sites and estimate how often you will travel between them in order to work out a predicted yearly mileage, which you could then let your insurer know.

  • Do you carry any goods?

If you are a delivery driver or a travelling salesman for a company and carry goods as part of your work, whether using a small van or a car, you may need to add a commercial aspect to your business car insurance.

Check with your broker what is covered as you may need to add this additional cover to protect not only your vehicle but the goods you are carrying too.

What About No Claims Discount?

You are able to accumulate No Claims Discount (NCB) on a business car insurance policy but you may find yourself having to start from scratch. If you use your personal vehicle for work purposes and have accumulated some NCB, this may help to count towards a cheaper premium in future.

As always, it is best to ask your broker during the application process if this is possible.

When it comes to insuring a business car, research is key, so by making sure you are as honest as possible when it comes to setting up a policy, you can help yourself to secure a cheaper premium.

Individual Insurance or Fleet Insurance: Which is Cheaper?

If you are a business owner with a lot of vehicles in your fleet, one of the important aspects of ownership is ensuring that each of your vehicles is adequately insured against damage and theft, much like with your regular car insurance policy.

But how best to insure your fleet? Insuring each vehicle individually is not only going to be expensive but also generate a lot of additional paperwork, which could not only lead to clutter but also to confusion when it comes to sorting out an insurance claim against one of your vehicles.

What Is Fleet Insurance?

Fleet insurance essentially allows you to insure all of your vehicles under a single policy, so whether your fleet involves cars, vans, trucks or a mixture of all three, putting all of your vehicles on one policy could work out cheaper for you in the long run.

How Does Fleet Insurance Work?

Fleet insurance insures multiple vehicles at one time, usually over five, although some brokers may allow you to insure three or fewer vehicles under them, this can vary so be sure to ask in order to be sure.

By taking the time to put all your vehicles onto one collective policy, not only can you save you on administrative tasks, but you may also save yourself some money in the process, especially if your drivers have good driving records.

What Level Of Cover Can I Get?

Fleet insurance can involve different levels of cover, including:

  • Third Party Only
  • Third Party Fire and Theft
  • Fully Comprehensive

Much like with a regular car insurance policy, the higher the level of cover the higher the price, so bear this in mind when choosing a policy. Fleet insurance will allow you the opportunity to place the same level of cover onto all of your vehicles, ensuring that all are covered against the same dangers.

What About No Claims Discount?

No Claims Bonus (NCB) can be built upon your fleet insurance policy, and each driver will have an individual NCB which will count towards the policy. So provided of course your drivers have good, clean records you could find yourself saving on your fleet insurance.

By accumulating a combined NCB for all your vehicles, and by keeping track of your drivers driving habits individually you can help to lower your premiums in future.

Any Additional Extras?

Depending on the nature of your business, there are a few additional extras that you may wish to add to your policy in order to add some extra protection for your fleet, including:

  • Goods In Transit cover – helps to cover your cargo against loss or damage en route to the customer site.
  • Breakdown cover – helps to get you back on the road in the event of your vehicle breaking down, either by repairing it by the side of the road or by towing you to a nearby garage for repairs.
  • Courtesy vehicle – helps to get you back on the road quickly if one of your vehicles break down on the road by providing a like-for-like replacement to allow you to continue on your journey.
  • European cover – if your orders take you across the Channel and into Europe, you’ll want to make sure you are covered while over in the EU, helping to cover against breakdowns and accidents caused by third parties.
  • Personal belongings cover – helps to protect a drivers’ possessions in the cab of his truck against damage or theft.
  • Windscreen cover – helps to cover damage to windscreens as a result of dangerous chipping, impacting wildlife or as a result of an accident.
  • Equipment cover – helps to cover any equipment that is used during the delivery, including tarpaulin, strapping and security ties.

As well as extras which cover the equipment and goods, you’ll also need to ensure that your driver is also covered, and the following extras are essential to ensure safety for them and your business:

  • Public liability cover – helps to protect you against claims made by third parties for injuries caused by your vehicle or equipment.
  • Employers’ liability cover – helps to ensure that you are covered should one of your employees is injured on your premises (eg. One of your drivers sustaining an injury while loading their van because of a faulty piece of equipment).

Check with your broker as to what comes as standard on your policy, and which of these extras may need to be added to your policy in order to cover your vehicles.

What Documents Do I Need To Insure?

Insuring a fleet may seem like a lot of work to set up at first, you’ll have to find the documents for each of your vehicles and register each one on the policy, which could take a good amount of time depending on your fleet size.

However, when it comes to renewal time, this process can be shortened if your fleet has not changed, and a new premium can be worked out from this previous detail.

Be sure to let your insurer know if you add vehicles to your fleet, replace vehicles and drivers or make any modifications to any of your vehicles, as this could affect the price of your premium going forward.

Insuring Fleets: Haulage

Photo By: Texas Federal State Property Office

Haulage firms specialise in the transit and delivery of larger products, or larger quantities of products to and from factories, manufacturing plants and even supermarket warehouses.

Haulage firms are made up almost exclusively of Heavy Goods Vehicles (HGVs); vehicles which are over 3.5 tonnes in weight, although some businesses may also make use of vans for smaller deliveries, known as Light Goods Vehicles (LGVs).

What Vehicles Can I Cover On My Policy?

Haulage fleet insurance will help you to cover a number of HGVs in your fleet under a single policy, as opposed to insuring each truck individually, which could prove to be quite expensive in the long run.

Haulage insurance can be used to cover a wide range of different lorry types; including articulated, refrigerated, flatbed and tipper. So whether you have a mixed fleet or only use a single type of truck to deliver goods, insuring them all under one policy can help save you money in the long term.

If you have a fleet which is comprised of a mixture of vehicles, it can be worth looking into grouping these onto their own fleet policies, such as courier fleet insurance and van fleet insurance in order to save yourself some money by insuring them all under one policy rather than individually.

What Will Be Covered By A Haulage Policy?

Haulage policies will help cover you against damages as a result of an accident caused by a third party, as well as protection from theft – both for the vehicle and for your customers’ goods.

Much like a regular car insurance policy, there will be differing levels of cover on HGV insurance – from third-party only to fully comprehensive. Third-party covers the driver only whilst fully comprehensive gives a more balanced cover, and is recommended for fleets as it covers all bases.

There are a wide variety of insurers out there who offer haulage fleet insurance, it can be worth comparing prices to see what suits your business needs.

What Extras Can I Get?

Insurers will offer additional extras as part of your policy, which depending on your line of work and the goods you carry can be handy to have in addition to your basic cover, here are a few things you should look out for when searching for a policy:

  • Goods In Transit cover

Goods In Transit cover is an essential part of your cover, as this covers your customers’ goods against theft, loss or damage sustained in an accident while in transit.

However, depending on the type of load you are carrying you might find this cover difficult to get, as products such as hazardous materials may not be covered by your insurer, ask your broker if you are unsure and be as honest as you can about the goods you carry.

  • Public Liability cover

Public liability cover helps to protect members of the public against damage to property or injury sustained because of a mistake by one of your drivers, which can include anything from property damage from scraping as a result of tight cornering to personal injury.

  • Employers’ liability cover

Employers’ liability cover helps in the payment of compensation should a worker sustain injury or illness while working for you, with many policies allowing you to insure up to a certain amount to cover all the vehicles in your fleet.

  • Windscreen cover

Windscreen cover, much like on a standard car insurance policy, will help to cover the cost of replacement windows on your HGVs in the event of damage – from involvement in an accident, chipping over time or even as a result of damage from wildlife such as flying birds.

  • Equipment cover

Equipment cover helps to cover the contents of your HGV which are involved with the security of your cargo or help to keep it secure during transit – including strapping, ropes, secure latches and security ties – and help to protect these against theft and damage.

  • Drivers’ belongings cover

On the other side of the coin is drivers’ belongings cover. HGV drivers usually spend a lot of time in their cabs and may have personal possessions contained within. Drivers’ belongings cover helps to protect these against theft or damage as a result of an accident, think of it as contents cover but on the road.

  • Breakdown cover

Breakdown cover is also available as an added extra and can prove handy for getting back on the road as quickly as possible following a breakdown, allowing your drivers to continue on with their journey with minimal time loss.

  • Courtesy vehicle

If the breakdown company are unable to fix the cab by the side of the road, some policies will include cover for a courtesy truck to help get you back on the road as quickly as possible following an incident.

Delivering Abroad

If your business takes you across the Channel and into Europe, you will need to get some European cover on your haulage insurance policy, as well as ensuring that your drivers have the correct paperwork and licences to drive their HGVs abroad.

Hazardous Goods

The type of goods you carry may affect your level of cover, especially if you carry hazardous materials such as chemicals. Depending on your cargo, some insurers may initially refuse you cover because of the risk factor, so it can be worth talking to several brokers when you are looking for cover as some may be more specialised and accommodating to your cargo.

Driver Diversity

When it comes to your staff force, age and experience can help to keep your premiums low. So while it might be difficult to insure younger drivers and new starters against your fleet insurance policy, providing your drivers have clean driving records and have accumulated some No Claims Bonus on your policy already you could find your haulage fleet insurance policy becoming cheaper.

Whichever business you are, haulier or courier, your vehicles will need insuring against third party damage and theft, that’s where a haulage fleet insurance policy comes in, and it is valuable to have.