Commercial Vehicle Insurance. Cover Your Fleet.
Your business depends on your vehicles. Commercial vehicle insurance protects them against accident, theft and third-party claims so downtime does not stop you earning.
Get in touchWhat is commercial vehicle insurance?
Commercial vehicle insurance covers vans, trucks and cars used for business purposes. It covers accident damage, theft, third-party claims and additional services such as breakdown and hired vehicle cover.
Commercial vehicle insurance is different from private car insurance. You must declare the business use class, the goods carried, and the operating area. Using the wrong use class is a material misrepresentation that can invalidate your claim.
Comprehensive cover includes own-damage repair or replacement, as well as third-party claims. Third-party only cover is the legal minimum but leaves your own vehicle unprotected.
What is covered
- Damage to your vehicle from accident
- Theft and malicious damage
- Third-party injury and property damage
What is not covered
- Tools and equipment in the vehicle
Covered by tools insurance, not vehicle insurance
- Goods in transit
If you are transporting goods for payment, separate goods-in-transit cover is needed
- Breakdown and recovery
Available as optional add-on
Who needs commercial vehicle insurance?
Tradespeople and service providers
Builders, electricians, plumbers and service providers using vans to visit customer sites
Courier and delivery services
Courier companies, delivery drivers and logistics operators using vehicles to transport goods
Fleet operators
Businesses operating 5 or more vehicles
Businesses with any vehicle for business use
Even occasional business use requires commercial insurance, not private car insurance
How much does commercial vehicle insurance cost?
£600 – £1,800 per year for a single van with comprehensive cover; fleet policies for 5+ vehicles often achieve savings of 15–30% per vehicle
Driver age, experience and claims history
high impactYoung or inexperienced drivers significantly increase premiums. A fleet with drivers under 25 will pay considerably more than one where all drivers are over 30 with clean licences.
Vehicle type, age and value
high impactA new high-spec transit van costs more to insure than a 5-year-old light van. Specialist vehicles — refrigerated, crane-equipped, tippers — are rated separately.
Business use class
high impactClass 1 use (visiting clients) is cheaper than Class 3 (courier or delivery). Using the wrong use class is a material misrepresentation and can invalidate a claim — make sure your declared use covers everything you do.
Mileage and operating area
medium impactHigher annual mileage and operating in high-theft urban areas both increase your premium. Some insurers use telematics to verify actual usage.
Goods carried or vehicle load
medium impactVehicles carrying high-value goods, hazardous materials or specialist equipment may need endorsed cover or a separate goods-in-transit policy.
WHY CECIL
Built differently.
Get your use class right
Using the wrong use class is a common mistake that can invalidate a claim. We help you understand whether you need Class 1, 2 or 3, and make sure it matches your actual business use.
Specialist rates for trades and logistics
Tradespeople, couriers and delivery operators are rated differently. Your quote should reflect your specific business use, not a generic commercial quote.
Fleet savings where available
If you operate 5 or more vehicles, fleet policies can deliver significant savings compared to single-vehicle quotes. We find the best rates for your fleet size.
Understand what is and is not covered
Vehicle insurance covers the vehicle. Tools insurance covers tools. Goods-in-transit covers goods you are hired to deliver. We explain these gaps so you are not surprised after a claim.
Real claims: what commercial vehicle insurance covers
A delivery driver is involved in a collision on a roundabout that writes off both vehicles
The comprehensive policy covered repair of the insured vehicle and third-party vehicle damage. The other driver's injuries were also covered under the third-party section.
£24,000 total — £8,000 own vehicle and £16,000 third-party
A tradesperson's van is stolen from outside a job site
The policy replaced the van and covered the cost of a hire vehicle for three weeks while a replacement was sourced
£14,500 vehicle value plus £1,800 hire car costs
A courier scratches a parked car when reversing and the owner claims for repairs and a courtesy car
The third-party section of the policy covered the repair costs and vehicle hire for the claimant
£3,200 total third-party claim
Common questions about commercial vehicle insurance
What is the legal minimum insurance required for a commercial vehicle?
Third-party only insurance is the legal minimum required to drive a commercial vehicle on UK roads under the Road Traffic Act 1988. Third-party only covers damage to other vehicles and property but not your own. Most businesses choose comprehensive cover.
What is the difference between commercial and private car insurance?
Private car insurance is for personal use only. Commercial vehicle insurance is for business use and must declare the use class, goods carried and operating area. Using private insurance for business use is fraud and will invalidate your cover.
How much does commercial vehicle insurance cost?
Cost varies widely depending on vehicle type, driver age and experience, business use class, annual mileage and claims history. A single van with comprehensive cover typically costs £600–£1,800 per year. Fleet policies for 5+ vehicles often achieve savings of 15–30% per vehicle.
What use class do I need for my commercial vehicle policy?
Class 1 covers commuting and occasional business use such as client visits. Class 2 adds regular business travelling. Class 3 covers commercial travelling, deliveries and courier use. Using the wrong class is a material misrepresentation and can invalidate your claim.
What is the difference between fleet insurance and multi-vehicle insurance?
Fleet insurance typically applies to 5 or more vehicles under a single policy. Multi-vehicle policies cover 2–4 vehicles. Fleet policies often allow any-driver arrangements and simplify administration across large vehicle inventories.
Does commercial vehicle insurance cover tools inside the van?
No. Commercial vehicle insurance covers the vehicle itself, not the contents. Tools and equipment need separate tools and equipment insurance or a goods-in-transit policy. This is one of the most common gaps tradespeople face after a van theft.
Can I drive other vehicles on a commercial motor policy?
Not usually. Commercial vehicle policies are written specifically for the named vehicle. A drive other vehicles extension is sometimes available for named drivers, but it is less common on commercial policies than on private car insurance.
Does commercial vehicle insurance cover me to drive in Europe?
Most UK commercial vehicle policies provide minimum third-party cover in EU countries under the EC Directive, but comprehensive cover may not extend automatically. If you drive in Europe for business, check whether your policy provides full cover abroad or whether a Green Card is needed.
What happens if I declare the wrong use class?
Declaring the wrong use class is a material misrepresentation. If you have an accident and your use class does not match your actual business use, your insurer can reject the claim and potentially cancel your policy without notice. Always declare accurately.
Is breakdown cover included in commercial vehicle insurance?
Not usually. Breakdown cover is typically an optional add-on costing £30–£80 per year. If your vehicles are essential to your business, breakdown cover is worth considering for rapid roadside assistance.
Industries that need this cover
Commercial Vehicle Insurance is commonly required across these sectors.
Interested in Commercial Vehicle Insurance?
We will be in contact when Cecil launches.