Lorry / HGV insurance

A straightforward guide to HGV cover in the UK

Lorry and HGV insurance is a legal requirement for vehicles over 3.5 tonnes and a core safeguard for haulage businesses. It protects against the financial impact of road accidents, cargo issues, third-party injuries, and damage to vehicles or property. In recent years, the cost and complexity of arranging suitable cover have increased. Premiums rose sharply in 2023, and claims are becoming more expensive due to pricier repairs, updated injury guidelines, and ongoing supply chain issues that extend downtime.

If you operate one truck or a large mixed fleet, the right policy can stabilise costs when things go wrong. Effective cover helps keep vehicles on the road, supports drivers after incidents, and protects the business from large liabilities. Equally, it is not a magic fix. Insurance responds to defined events and limits, and it will not remove the operational risks that come with tight schedules, ageing vehicles, or driver shortages. Understanding what is covered, what is excluded, and how claims are handled will help you avoid surprises.

In the UK, market pressures are real. Average HGV insurance commonly ranges between £4,000 and £8,000 per vehicle per year, influenced by vehicle type, load, and driver history. Fleet premiums rose significantly in 2023 and further cost pressures have carried into 2025 through higher repair, maintenance, and tyre prices. At the same time, an ageing driver workforce and persistent vacancies can lead to a greater proportion of less experienced drivers on the road, increasing accident risk. This guide sets out the essential facts so you can compare options calmly, ask the right questions, and choose cover that aligns with how you operate.

Insurance can offer real financial protection, but only when you understand what is covered - and where the gaps are.

What is typically covered and how claims are handled

Most HGV policies are built around road risks cover at one of three levels: third-party only, third-party fire and theft, or comprehensive. Comprehensive is common for financed or high-value trucks, as it can cover your own vehicle damage as well as third-party liabilities. Liability to others for injury or property damage is a legal minimum. Policies usually extend to trailer cover, goods in transit, and legal expenses as options, but limits and conditions vary.

Expect exclusions around wear and tear, poor maintenance, insecure loads, unauthorised drivers, or use outside stated purposes. Carriage of hazardous goods often requires specialist endorsements. International haulage may need green cards or additional territorial cover. For fleets, named driver versus any authorised driver terms materially affect pricing and claims outcomes.

When a claim occurs, the process generally starts with immediate notification, driver statements, telematics data where available, and evidence such as photos and dashcam footage. Insurers may appoint approved repairers to speed parts sourcing and control costs. If a third party is involved, liability will be investigated using reports, police details, and witness accounts. Total loss settlements typically reflect market value less excesses. For goods claims, insurers assess packaging, load security, and contractual conditions of carriage. A simple scenario: a driver collides with a barrier at a depot, damaging the cab and delaying a delivery. A comprehensive policy with downtime cover might pay for repairs and contribute to replacement vehicle hire, while goods in transit insurance would respond if cargo is damaged within policy limits.

Be mindful of excesses, claim reporting windows, and any warranties such as daily walkaround checks or immobiliser requirements. Not meeting these conditions can reduce or invalidate a claim.

Who benefits most from HGV insurance

HGV insurance is essential for UK haulage businesses moving goods domestically or internationally, whether you run a single rigid, multiple artics, or a mixed fleet with specialist vehicles such as refrigerated units or recovery trucks. Owner-drivers who rely on one vehicle for income particularly benefit from comprehensive cover and add-ons that reduce downtime. Logistics firms with time-critical contracts may prioritise extensions for courtesy trucks and rapid repair networks. Operators carrying higher-value or fragile goods should consider tailored goods-in-transit limits and temperature deviation protection.

There are situations where minimal cover may be sufficient, such as a vehicle used occasionally on private land or as part of limited operations with strict risk controls. Even so, legal liabilities on the public road must be met. If your business is mothballed or a vehicle is off road for a period, a laid-up policy could be more cost-effective than full road risks. The goal is to match the policy to the real risks you face, not to overinsure features you do not need.

Choosing your cover level and add-ons

1. Basic road risks - Third-party only

   • Covers injury and property damage to others when your vehicle is at fault.
   • Lowest initial premium but no protection for your own vehicle damage or theft.
   • Suitable where vehicle value is low and strong financial reserves exist for self-funding repairs.

2. Standard protection - Third-party fire and theft

   • Adds cover if your HGV is stolen or damaged by fire.
   • Does not cover own-vehicle accident damage.
   • Often chosen for older vehicles with moderate replacement value.

3. Comprehensive - Own damage plus third-party

   • Includes accidental damage to your vehicle, vandalism, fire, theft, and third-party liabilities.
   • Required by many finance providers and recommended for higher-value or newer trucks.

4. Goods in transit

   • Protects cargo against loss, theft, or damage within limits and conditions.
   • Options for temperature-controlled loads and high-value items.

5. Breakdown and downtime cover

   • Roadside assistance, recovery, and sometimes contribution to replacement vehicle hire.
   • Useful given parts delays and older fleet risk of unplanned downtime.

6. Legal expenses and uninsured loss recovery

   • Covers legal costs for pursuing uninsured losses and defending certain claims.

7. International and hazardous goods extensions

   • Green card or EU cover where required, plus ADR endorsements for hazardous loads.

8. Telematics and risk management endorsements

   • May reduce premiums where you share driver behaviour data, training records, and maintenance logs.

Tip: Align add-ons with the loads you carry, the routes you run, and how quickly you need to be back on the road after an incident.

What it costs and the drivers of price

Prices are indicative only. Insurers rate each risk individually and can change terms at renewal.

Who is eligible and what insurers look for

To apply, you must own or operate an HGV over 3.5 tonnes and have the correct licence and operator documentation. Insurers commonly request vehicle details, photographs, security features, mileage estimates, and storage locations. They will ask for driver histories, licence checks, training records, and proof of employment or agency status. For fleets, a claims experience schedule and risk management evidence help underwriters set fair terms.

Common issues that lead to declines or higher premiums include recent serious convictions, multiple at-fault claims, inadequate security, high vehicle values without telematics, or regular carriage of hazardous goods without proper certification. Businesses that cannot evidence maintenance routines, daily walkaround checks, or load security processes may face restricted cover. If you operate internationally, be prepared to show compliance with cross-border documentation and driving hours rules.

The process from quote to claim

1. Gather vehicle, driver, and operations details with recent claims history.
2. Request multiple quotes from brokers or insurers for comparable cover.
3. Compare limits, exclusions, excesses, and repair network support.
4. Select cover levels and add-ons that match your contracts and routes.
5. Confirm declarations, security measures, and driver training evidence.
6. Pay premium and receive documents, certificates, and any green cards.
7. Report incidents promptly with photos, telematics, and driver statements.
8. Track repairs, hire vehicles, and settlement through your claims handler.

Advantages and trade-offs to weigh up

Checks to make before you commit

Review the schedule and wording for cover limits, territorial scope, and any warranties that apply to security, driver eligibility, and load controls. Confirm the excesses for own damage, windscreen, theft, and cargo, as these can differ. Look closely at exclusions for wear and tear, unattended vehicle security, temperature deviation, and hazardous materials. Check renewal terms, mid-term adjustment fees, and approved repairer networks, since parts delays can extend downtime. Make sure your documentation is accurate, including driver records, declared usage, and storage details. Keep evidence of maintenance and daily walkaround checks to support any future claim.

Related options if your needs differ

1. Fleet insurance for mixed vehicles
   • Suitable if you operate several HGVs, vans, or cars under one policy.
2. Goods in transit only
   • For subcontractors whose principal already covers road risks but requires cargo protection.
3. Courier or haulage-specific policies
   • Designed for multi-drop urban work or long-haul routes with tailored limits.
4. Public liability and employers liability
   • Covers injury or property damage away from the vehicle and staff risks.
5. Breakdown and replacement vehicle hire
   • Focused on minimising downtime when parts delays or older vehicles increase risk.

Common questions

Q: Why have premiums increased recently? A: Accident frequency, higher repair costs, and rising injury claim values have all pushed premiums up. Updates to injury guidelines and parts shortages also contribute to longer repairs and higher insurer liabilities.

Q: How much should I budget per vehicle? A: A broad range is £4,000 to £8,000 per HGV annually. Your price depends on vehicle type, routes, cargo, driver records, claims history, and the level of cover and excess you choose.

Q: Do driver shortages affect my premium? A: Yes. When a fleet relies more on less experienced drivers, claim frequency can rise. Insurers respond by adjusting rates. Evidence of training, mentoring, and telematics can help manage the impact.

Q: What if my truck is off the road for repairs? A: Some policies include courtesy trucks or contribute to hire costs. Given parts delays and repair backlogs, consider downtime cover or breakdown assistance to reduce revenue loss while repairs are completed.

Q: Is international cover included as standard? A: Not always. You may need green cards or specific territorial extensions. Check documentation needs for each country and ensure your certificates and proof of insurance are valid before departure.

Q: How do legal changes affect claims costs? A: Increases in guideline awards for personal injuries and changes to whiplash tariffs raise claim values. That lifts insurer liabilities and can affect premiums at renewal for commercial vehicle operators.

Q: What about autonomous or driver-assist trucks? A: Liability rules are evolving. Some legislation shifts certain responsibilities to licensed operators. If you trial advanced systems, discuss policy wording and liability allocation with your broker in advance.

What to do next

If you are reviewing cover, gather accurate driver records, vehicle details, and claims history, then compare multiple like-for-like quotes. Focus on limits, exclusions, excesses, repair networks, and downtime support. Take your time. Choose the option that protects your routes, cargo, and cash flow without paying for features you do not need.

Next step: shortlist two to three quotes with identical limits and compare excesses, repairer access, and hire vehicle terms side by side.

Important notice

This guide is general information, not personal financial advice. Policy terms vary between insurers and change over time. Always read the full policy wording and schedule, check exclusions and limits, and seek professional guidance if you are unsure about suitability for your circumstances.