Understanding Vehicle Collection and Delivery Insurance
Vehicle collection and delivery insurance is a specialist form of insurance that is designed for businesses involved in the collection, transportation and delivery of vehicles. The insurance usually covers the period when they are being driven, or moved, from one location to another without the need to insure each specific vehicle for an extended period. The ultimate goal is to provide coverage for potential damages or liabilities that might occur during the process of transportation.
Singly driven vehicles can often be covered by trade plate insurance policies, but if several vehicles are being moved at the same time, such as on a recovery truck, the vehicles, as well as the truck itself, need to be covered by insurance for accident and also liability - both for members of the public and employees as well.
The types of vehicles typically covered with this insurance are cars, vans, motorcycles, trucks, and motorhomes, although it can include more specialised vehicles such as auction vehicles and classic or vintage cars. Having the right level of insurance coverage for your collection and delivery business will ensure you don’t lose earnings by any incident, or claim, being brought against your business or events that could mean your company is seriously out of pocket. Vehicle collection and delivery insurance will give you peace of mind.
What Insurance Do Vehicle Collection Agents Need?
While you are in charge of client’s vehicles you will need to know that they are protected against loss or damage and that there won’t be any unexpected, large bills to pay. Whether you use trade plates or a recovery vehicle, you will need the right level of cover. When considering what level of cover you need, you should take into account various necessities as well as possible add-ons depending on the scope of your business and its operations. Some of the things to take into account are:
- Road risk insurance – Third Party Only (TPO) is a minimum legal requirement, but you may wish to consider Third Party, Fire and Theft (TPFT) or Comprehensive for greater peace of mind that more eventualities are covered.
- Cover for vehicles and goods in transit – this covers the vehicles that your recovery truck may be moving, adding protection for your customers.
- Cover for your recovery truck – this covers the truck your business uses to transport your customer’s vehicles and has to be covered to protect your truck as well as the vehicles it is transporting.
- Employer’s and public liability – this will cover any possible legal action brought against the business for injury, or damage, to any of your employees or members of the public, or private property, that results in legal action. It will cover legal fees and any continuity in business operations.
With other options for insurance, or additional policies, to ensure coverage for all your business’s risks, we are ideally placed to offer you the best advice and the right cover for your needs and budget.
Who Needs Vehicle Collection and Delivery Insurance?
Various businesses and individuals involved in the transportation, collection or delivery of vehicles will be those who typically need this type of insurance. Those who need to consider vehicle collection and delivery insurance include:
Vehicle transporters who move cars from one location to another.
Trade platers who transport unregistered vehicles using temporary plates.
Vehicle recovery and breakdown services
Breakdown and recovery services who tow or repair vehicles on site.
The Benefits of Vehicle Collection and Delivery Insurance
There are many advantages to having vehicle collection and delivery insurance for your business and some of the primary benefits include:
Unlike standard vehicle insurance, which is usually tied to one specific vehicle, collection and delivery insurance can provide cover or multiple vehicles – perfect for companies that handle a high volume of vehicles.
Any vehicle on the road is legally obligated to have insurance coverage.
Having collection and delivery insurance will bolster your company’s reputation as it signals to customers that the business is responsible and prioritises the safe transportation of vehicles.
Peace of mind
Knowing that potential damages and liabilities are covered removes worries about any issues or large, unexpected financial outlays.
With coverage that ensures accidents or damages are covered, having vehicle collection and delivery insurance will mitigate financial repercussions and ensure that businesses don’t have to bear hefty out-of-pocket expenses. A small monthly premium will save you big time in the future should accidents happen.