What truck insurance do I need?
Are you a truck driver in need of insurance? Find out what cover to consider and protect yourself, your business and your family.
Key takeaways
- If you drive a truck for a living or run a business that uses trucks, a business insurance policy can ensure you are protected financially should something go wrong.
- Some types of business insurance are compulsory in Australia, without them you could face fines and even jail time.
- There are a couple of different insurance types that you need to consider depending on what you do.
Is insurance compulsory if I work with trucks?
Yes, there are some types of insurance that you need to have. These include:
- Workers compensation insurance. If you have employees, you need to have this to protect them in case they have an accident or get ill due to a work-related issue.
- CTP insurance. If you own or operate vehicles as part of your business, such as trucks, compulsory third party (CTP) insurance is a legal requirement, covering you for medical costs arising from injuries or deaths caused by the use of those vehicles.
What truck insurance do you need to consider?
Here are the common types of insurance you should consider getting if you're a truck driver or run a business involving the use of trucks:
Public liability insurance
Public liability insurance is an important type of insurance that protects your business if it becomes legally liable for injury or damage to someone elses property.
It's a step above CTP, which is mandatory in Australia and only covers you for injuries to people if the driver of your truck was at fault in the accident. This is essential for independent drivers and truck business owners, as it covers third-party claims. For instance, if your truck damages a client’s equipment in an accident, public liability insurance can provide financial protection.
financially.
Commercial vehicle insurance
If you run a business that uses trucks, commercial vehicle insurance can cover you for loss or damage to your vehicle, third party property damage caused by your vehicle(s) and a number of other risks, including new vehicle replacement, uninsured motorists and hire car costs. It's a little like comprehensive car insurance but for business purposes and is helpful to have as a supplement to public liability insurance, which covers the business as a whole, not just the vehicles.
Workers compensation
If you run a business and have employees, you need to have workers compensation. It's usually a mandatory requirement in all states of Australia.
Income protection insurance
This pays you a monthly income if you're unable to work due to serious injury. It's helpful if you're a self-employed truck driver or sole trader and don't have any employees as workers compensation usually won't cover you.
How much does public liability for truck drivers cost?
The cost of insurance can vary based on the provider and your occupation. This is simply because every job will carry a certain level of risk which insurers consider in calculating your premium. Additionally, each insurance provider will have its own unique criteria it uses to weigh your risk.
To give you a better idea of how much a public liability policy might cost you, we’ve taken a look at three popular Australian providers. We found that the cost of insuring your truck will set you back between $60 - $150 if you own your own truck. If you're using a truck hire service, it’s going to be between $50 - $90.
Keep in mind that the prices listed should only be used as a guide. Any quotes we found were based exclusively on the persona of an electrician with $250,000 in revenue per year.
Occupation |  = |  |  |
|---|---|---|---|
| Tradesmen who use a truck* | $61.85 | $70.60 | $142.75 |
| Truck hire service | $52.78 | $89.04 | N/A |
$10,000,000 in liability cover | $10,000,000 in liability cover for | $10,000,000 in liability cover | |
*This quote is based on an electrician with $250,000 in revenue per year.
What am I covered for?
Since you probably want to consider whether you need public liability, commercial vehicle insurance or both, here's a breakdown of what they cover you for:
Public liability insurance will generally cover you for the following:
- Legal liability. This includes damage to someone else's property, personal injury to someone else and advertising liability.
- Legal costs. If a legal liability claim is made against your business, it can cover the costs incurred in your legal defence.
- Cover for others. Public liability doesn't just cover you, it covers business directors, partners, shareholders and employees.
- Products liability. Many policies will also include products liability cover for injury or damage caused by your products.
- Loss or damage to your vehicle. This can insure you against events such as accidents, floods, fires, explosions and much more.
- New replacement vehicles or repairs. As with car insurance, your truck insurer might replace a truck with a new or like-new replacement, pay for repairs or organise its own repairs.
- Extra property insured. Truck insurance can generally include extras, such as tools, tarps, gates and other truck accessories, in its cover.
- Working accessories. Truck insurance will often cover all permanently attached accessories and can also insure removable accessories.
- Recovery. This covers the cost of recovering or moving a damaged vehicle or other insured property.
- Finance payout. If a truck suffers a total loss while still under finance, many truck insurance policies can offer an additional payout to help you cover the cost of finance that you haven't paid off.
- Replacement hire vehicle. Policies may offer a replacement hire vehicle to continue business operations while you are unable to use your truck.
- Expediting expenses. This is cover for reasonable costs incurred in expediting repairs to the insured vehicle.
- Uninsured driver cover. This is cover for damage caused to your vehicle by an uninsured third-party driver.
- Non-owned trailer cover. You can insure a trailer temporarily attached to a prime mover or other insured vehicle, which you don't own, as though it was.
Where public liability insurance might not cover you
Some exclusions you may encounter include the following:
- Wear and tear, deterioration or a failure to maintain. There isn't any cover for damage resulting from wear and tear or deterioration, such as rust or a failure to maintain an item.
- Under the influence. Your insurer will not provide cover for any driver or equipment operator under the influence of drugs or alcohol, or who refuses to take a drug or alcohol test following an incident.
- Unlicensed or unauthorised vehicles. You will need to ensure a vehicle meets all licensing and authorisation requirements to get cover.
- Hire or loan. Your insurer will not provide cover for equipment that it is being rented out for profit, except as might specifically be covered under your policy. For example, a policy might only insure for wet hire.
- Unsecured property or a failure to take precautions. You need to appropriately secure your property and take sensible precautions to avoid loss or damage.
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