What is Recovery Truck Insurance?

Recovery vehicle businesses need specialist insurance which covers all there needs. Recovery insurance is a type of motor trade insurance with unique tailoring for recovery trucks needs. Recovery trucks also need goods-in-transit insurance to cover the ‘goods’ (vehicles) recovered.

Recovery Truck Insurance Policy Types

Motor Trade Recovery Truck Insurance

Recovery trucks, by law need at least a third-party road risk insurance policy, which provides cover when the recovery trucks causes an accident to the third-party property. This is the cheapest level of cover, however due to the nature of recovery truck business, there is likely to business premises, in which case we recommend a comprehensive combined motor trade insurance policy, which will also include damages to the recovery truck in a fault accident and the business premises.

Third-party only recovery truck insurance

Covering anyone else’s property in event of an accident is the cheapest level of cover and called third-party insurance. This type of insurance will not cover the vehicle you are recovering.

Third-party, fire and theft recovery truck insurance

Third-party, fire and theft will cover third party insurance, mentioned above, and if the truck is stolen or set alight.

Comprehensive cover recovery truck insurance

In addition to all of the above, a comprehensive recovery truck insurance will cover repairs to the truck in a fault claim. Comprehensive cover in the most expensive road risk cover.

Combined Motor Trade Recovery Truck Insurance

Combined insurance will cover road risk and your business premises. You cannot obtain a premises cover without also having road risk cover. If your business has premises away from your home residence address, you need a combined traders insurance policy. For a recovery firm in the form of a garage or forecourt. This type of policy can also include liability, and as an add-on, you can often also financially protect tools.

Goods-in-Transit Recovery Truck Insurance

In addition to a motor trade policy, a goods in transit policy is needed. Specifically a carriage of vehicle policy which will cover the recovered vehicle when transporting the vehicle.

Factors That May Affect Your Recovery Truck Policy

Being a non genuine motor trader

It is unlikely you have a recovery truck for illegitimate reasons, however underwriters still need proof of business to provide you with a policy. Proof can be provided in the form of previous years books or receipts and invoices.

Years trading

The first year trading is likely to be the most expensive. High premiums is due to the insurers perceiving this as a high risk period with no historic policy data.

No claims discount

Zero no claims limits the amount of deals in the market. As a result your recovery truck insurance is likely to be the more expensive than having 5 years no claims bonus.

Being Under 25

It is very hard to find recovery vehicle insurance for the under 25’s and even if a broker can be extremely expensive.

Not having an operators license

By not having an operators license, you will not be able to get a quote for a recovery truck insurance.

Number of cars needing cover

The maximum number of vehicles that can fit on the recovery truck will have an affect on the insurance. When storing vehicles at your business premises, cover can be for unlimited vehicles. However, these policies will be significantly more expensive than if you only ever have care of 1 or 2 cars.

Types of vehicles you recover

Buying a policy that reflects the vehicles your recovery truck can recover ensures you do not pay for insurance you will not use. ‘Any vehicle’ includes lorries and specialist cars, pushing up your premium price.

Level of security at your premises

Installing CCTV and locked fences can improve your policy’s cost as this acts as a deterrent for criminals when the premises are unattended at night.

Location of business premises

Like with many insurance policies, location will affect the policy’s cost as areas with higher rates of crimes or claims will be more expensive.

Paying in advance

Paying in advance can save you some money compared to paying for your policy yearly.

Shopping around before your motor trade insurance renewal

The earlier you look for a renewal price, the more likely you will receive a better quote from the underwriter. Looking around earlier than 30 days will likely mean some insurers will not provide a quote.

Important Information To Note About Motor Trade Policies

Additional Occupations

Part-time traders will often have other work lines; this may include being an employee for another company or having another business. If you inform the broker, they may consist of cover for other occupations within the one policy. Not all underwriters will cover commuting, so it is essential to share this information as not sharing this information could lead to invalid insurance.

Domestic use

Many traders policies will not include domestic use and only include vehicle use for work purposes. If you plan to use a business car for personal use, it is essential to let your broker know to ensure they get ‘domestic use’ to your policy.

How to reduce the cost of your motor trade policy

It is vital to give the broker the right information, otherwise, your policy could be void in the event of a claim. That’s why it’s best to get a quote from multiple brokers, ensuring you get the best deal.

By applying for a quote with us, we’ll introduce up to three brokers to contact you to provide you with the best deal on your cover.

When speaking to your broker, make sure you don’t have any unnecessary add-ons to the policy.

Ensure your MID (Motor Insurers Database) entries are up to date, this will potentially reduce the number of vehicles you have on your policy and in turn, reduce your premium.

Consider having a voluntary excess.

Improve your security, such as having an indoor showroom, or even CCTV could improve your policy rate. Employ drivers with clean driving history, no criminal charges and over the age of 25 as these factors can impact your premium

Buy unmodified vehicles as these vehicles can be difficult to cover on a standard Motor Trade policy.

Build a personal and motor trade no claims policy bonus.

FAQ’s