Why Has My HGV Insurance Premium Increased?

If you've recently received your HGV insurance renewal quotation and noticed that the premium has increased, you may be wondering why — particularly if you haven't made any claims.

Insurance premiums can rise for several reasons, and not all of them relate directly to your own claims history.

For owner-drivers and haulage businesses, understanding what influences the cost of truck and fleet insurance can help you make informed decisions and potentially reduce your insurance costs.

1. Rising HGV Repair Costs

Modern HGVs are increasingly sophisticated, incorporating advanced technology, electronic systems and specialist safety equipment.

Although these features can improve vehicle safety, they can also make repairs more expensive.

Replacement parts, specialist labour and the cost of repairing damaged vehicles can all contribute to higher insurance claims.

Where a vehicle is involved in a serious accident, insurers may also face substantial third-party property damage or personal injury claims.

As claims become more expensive, insurers may adjust their premiums to reflect those increased costs.

2. Increasing Claims Costs Across the Insurance Market

Even if your business has an excellent claims record, your premium can still be affected by wider insurance market conditions.

Insurers assess the overall claims experience of the risks they insure, not just individual customers.

If claims costs increase across their commercial motor portfolio, they may need to adjust premiums more generally.

This means that an HGV operator with several claim-free years could still experience an increase at renewal.

3. Your Claims History

Your individual claims experience remains an important factor when insurers calculate premiums.

Insurers may consider:

• The number of claims made in recent years

• The total cost of those claims

• Whether claims were fault or non-fault

• Outstanding claims that have not yet been settled

• The frequency and nature of accidents

An outstanding claim can sometimes affect your renewal premium even before the final settlement amount is known.

For fleet operators, reviewing claims regularly can help identify recurring problems and opportunities to improve risk management.

4. Driver Age and Experience

The drivers operating your vehicles can also influence insurance costs.

Depending on the insurer, factors may include:

• Driver age

• Length of HGV driving experience

• Previous accidents and claims

• Motoring convictions

• The number of drivers requiring cover

Policies covering younger or less experienced drivers may attract higher premiums or additional restrictions.

Ensuring that insurers have accurate driver information is important when obtaining quotations.

5. Changes to Your Haulage Operations

Changes within your business can affect how insurers assess the risk.

For example:

• Adding vehicles to your fleet

• Changing the type or value of vehicles operated

• Carrying different types of goods

• Undertaking new haulage contracts

• Operating in additional countries

• Changing overnight parking arrangements

• Increasing the number of drivers

Even relatively small operational changes can affect the terms an insurer is prepared to offer.

It is therefore important to keep your broker informed about changes to your business throughout the policy year.

6. Why the Cheapest HGV Insurance Isn't Always the Best Option

When faced with a higher renewal premium, it's understandable to look for a cheaper alternative.

However, comparing insurance quotations involves more than simply looking at the final price.

Policies can differ significantly in areas such as:

• Policy excesses

• Driver age and experience restrictions

• Permitted vehicle use

• Territorial limits

• Claims conditions and exclusions

• Breakdown and legal protection options

For haulage businesses, it is also important to consider whether separate covers, such as Goods in Transit and Hauliers' Liability Insurance, meet the requirements of your contracts.

A cheaper quotation may not provide the same level of protection as your existing policy.

7. How Can You Reduce Your HGV Insurance Premium?

Although some factors affecting premiums are outside your control, there are practical steps that may help improve your insurance risk profile.

Improve Driver Training

Regular driver training can help reinforce safe driving practices and reduce the likelihood of accidents.

Consider Dashcams and Telematics

Dashcams and vehicle telematics can provide useful information about driving behaviour and accidents.

They may also help establish the circumstances of an incident and assist with defending certain claims.

Review Your Claims Experience

Regularly analysing accidents and claims can help identify recurring issues.

For fleet operators, understanding when and why accidents happen can support improvements in driver procedures and risk management.

Improve Vehicle Security

Secure overnight parking, appropriate security measures and effective vehicle management can help reduce certain risks.

Provide Accurate Information

Ensure that your broker has up-to-date information about your vehicles, drivers, business activities and claims history.

Review Your Insurance Before Renewal

Starting the renewal process early gives your broker more time to review your requirements, obtain quotations and discuss available options.

None of these measures guarantees a lower premium, but they may help insurers assess your business more favourably.

8. How a Specialist HGV Insurance Broker Can Help

HGV and haulage insurance is a specialist area of the commercial insurance market.

Different insurers have different appetites for particular vehicle types, haulage activities, driver profiles and claims histories.

Working with a broker who understands the haulage industry can help ensure your business is presented accurately to suitable insurers.

At Avis Insurance, we have over 40 years' experience arranging insurance for UK haulage operators.

We work with a range of established insurers to arrange cover for individual trucks, owner-drivers and commercial vehicle fleets.

Our aim is to help customers obtain competitive quotations while ensuring that the cover offered is appropriate for their business.

Concerned About Your HGV Insurance Renewal?

If your HGV insurance premium has increased, it may be worth reviewing your current arrangements before accepting your renewal quotation.

Whether you operate a single truck or a fleet of commercial vehicles, the team at Avis Insurance can discuss your requirements and explore suitable insurance options.

Call Avis Insurance on 01628 662666 or contact us for a quotation.

We arrange specialist truck, fleet and haulage insurance for operators throughout Great Britain.