What it is: Commercial Insurance will pay for the replacement of your work vehicle in the event of theft or damage to your vehicle. Tradies need Commercial Vehicle Insurance!
Your Commercial Vehicle Insurance premium could be cheaper if you have no driving infringements, convictions and are driving with a clean record. Your No Claim Bonus could be as much as 50% of the cost of your vehicle insurance policy.
It should be noted that if you are a tradesman with apprentices (under 25 years) who drive your vehicle, they should be listed on your policy. If not and a young unlisted driver has an accident in your car your excess could increase by up to $600 over the standard and applicable age excesses.
What it covers: Commercial Vehicle Insurance covers accidental loss or damage to your motor vehicle and/ or trailer which includes damage as a result of an accident, theft, flood, fire and malicious damage. It provides you with a way to have repairs to your vehicle repaired quickly and in the event of a motor vehicle under two years old this may be fully replaced in the event of a total loss depending on the insurer.
Make sure that your Commercial Vehicle Insurance Policy specifies any drivers under the age of 25, the sum ensured of your vehicle, new for old vehicle replacement and if you have a clean driving history.
Commercial Vehicle Insurance Checklist:
• Is the process fast so you can get back in the drivers seat sooner?
• Does the insurance policy specify new for old replacement?
• Does the policy include free windscreen replacement?
• Is there an option to extend your insurance to cover a trailer?
• Will you get a replacement vehicle in the event of an accident and/or theft?
• When an I eligible for a replacement vehicle in the event of a total loss?
• Will your insurance pay the costs of hiring a similar replacement vehicle if your vehicle is stolen?
• Are you dealing with a reputable Insurer?
• Does the Insurer specialise in Commercial Vehicle Insurance for tradies?
• Is there an option to pay by the month and does it cost extra?
Case Study: Stephen a landscaper from Adelaide learnt about his Commercial Vehicle Insurance the hard way. He offered to do a ‘mates rates’ job as a favour for his friend in Port Augusta.
While he was in Port Augusta his 3-tonne truck was badly damaged in a vehicle accident. When he put a claim in to his insurance company he was shocked to discover that he was not insured as he was working over 250km from his base in Adelaide. It is important that you always check the Product Disclosure Statement of any insurance policy.
In this case if Stephen had read his PDS he would have known that his insurer included a clause that limited their insurance on trade vehicles and trucks to a radius of 250km from their home base.
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