Heavy Commercial Vehicle Insurance
Trucks & Trailers
Insurance cover for vehicles with a gross vehicle mass over 3 500kgs and all types of trailers attached thereto. This type of insurance covers the trucks and trailers against accident damage, theft and hijack. There are numerous additional covers including Mechanical Breakdown towing, Personal Accident for drivers, Excess Buyback to reduce the often very high excesses and many more.
The trucks and trailers should be insured at Current Retail value as this is the value insurers will work on at the time of a claim to settle the claim. Always ensure that you have the correct year, make and model of truck and trailer to ensure that you have the correct Retail value. The best way is with the Mead& McGrouther vehicle code.
Insurance cover on comprehensive basis will also include damage to third party property or vehicles as a result of your vehicle causing the damage. Heavy truck insurance is specialised and generally has to be taken out if a client is carrying third party goods.
Windscreen cover may or may not be included, depending on the insurance company providing the cover. Always check with your broker if windscreen cover is included.
There are many methods of insuring trucks with the most conventional method being risk transfer from client to insurer in consideration for payment of premium. Other methods of insuring for larger fleets include aggregate excess and/or self-funding.
Excess Buy Down
Excesses on trucks and trailers tend to be much higher than a standard vehicle, some can be as high as R395 000 on new trucks. This is due to the nature of the risk, the high values of new trucks and the extent of the damages than can occur in event of a claim and so it is highly recommended that you buy the excesses down to a reasonable level for an additional premium. It makes far more financial sense to pay a little per month than having to come up with very large excesses at claim time.
Credit Shortfall / Top Up Cover
This insurance covers the difference between the retail value of the truck / trailer and the amount outstanding to the bank. If at the time of an accident / claim you owe the finance company more than the current retail value of a truck / trailer due to interest and finance charges, this will cover the difference. It is very important cover as you wouldn’t want to be paying off a truck / trailer you no longer have due to the interest and finance charges.
If your truck has been stolen or hijacked or has to be in for repairs for any period of time following a valid claim this will cover you for a specified amount (that you choose) to cover the loss of income. You will also select the number of weeks you would like to be compensated. A premium will be charged according to the amount and number of weeks you choose.
Goods In Transit
As a transporter you will be transporting goods – this cover insure the goods that you transport for your client. You can choose cover based on your needs, either All Risks or Limited cover. We always advise our clients to insured goods on an All Risks basis.
Please note that due to legislation trucking clients are not able to charge their individual clients a separate insurance cost since they are not authorised financial service providers. The cost of insurance has to be included into the haulier expense structure and their fees adjusted as all inclusive.
Contingency Goods In Transit
This type of cover is normally held by logistics / transport brokers. The cover under this is meant to cover the goods only in the event that the standard goods in transit does not respond to a claim. The trucking client will normally have the goods in transit policy whilst the logistics broker will hold a goods in transit contingency policy.
M and W Insurance Brokers has won the Santam silver award for brokers in the KZN and was nominated for an award from MUA Insurance Acceptances.
M and W Insurance Brokers are proud members of the Financial Intermediaries Association and the Insurance Institute of KZN.