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Business Vehicle Insurance

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Commercial Vehicle Insurance

Business vehicle insurance

Often referred to as commercial vehicle insurance, this provides coverage for vehicles that are used for business purposes. Whether you own a single car for your small business or a fleet of trucks for a large corporation, business car insurance is designed to protect your company from financial losses that can result from accidents, theft, damage, or other mishaps involving these vehicles used for day-to-day business operations.

Why is business vehicle insurance important? 

This cover protects you against the most common risks of owning and operating a business vehicle.

The importance of having a comprehensive commercial vehicle insurance policy cannot be overstated. If your business owns or operates vehicles, these vehicles are potentially exposed to numerous risks daily. From fender benders in the car park to major collisions on the highway, any incident involving your commercial motor vehicle can lead to hefty repair costs and legal fees. Beyond the direct financial impact, such incidents can also disrupt your business operations and damage your company’s reputation. Additionally, this insurance provides legal liability protection arising from accidents involving business vehicles, including coverage for legal liability for the damage to someone else’s property and potential court-ordered payments.

A commercial vehicle policy serves as a safety net, helping you manage these risks and ensuring that unexpected incidents don’t derail your business. Its affordability makes it a wise investment. In New Zealand, the average cost of business vehicle insurance typically ranges between NZ$50 – NZ$100 per month.

It’s crucial to have business vehicle coverage if your business:

  • Owns or leases vehicles
  • Has employees who drive company cars
  • Transports goods or people
  • Operates heavy vehicles

What does business vehicle insurance cover?

In New Zealand, there are four primary types of policies: Third Party, Third Party Fire and Theft, Comprehensive, and Fleet. It’s crucial for businesses to consider a tailored commercial car insurance policy that aligns with their business requirements.

Third Party Insurance

This is the most basic level of coverage. It covers the costs of damage to another person's vehicle or property that you or your employee cause while driving.

Third Party Fire and Theft

This insurance includes third party coverage and adds protection against damage to your vehicle from fire or theft.

Comprehensive Insurance

Comprehensive insurance covers everything that third party fire and theft insurance does, and it also covers accidental damage to your own vehicle, regardless of who's at fault. It's the most extensive coverage you can get.

Commercial Motor Fleet Insurance:

Fleet insurance is designed for businesses that operate multiple vehicles. It allows you to insure all your vehicles under one policy, which can often be more convenient and cost-effective than having separate policies for each vehicle.

How much does the cover cost in NZ?

Business vehicle insurance premiums are calculated on several different factors including:

  • Type of cover
  • Use of vehicle
  • Location 
  • Claims history

Business vehicle insurance in NZ typically costs between $50 to $100 per month. 

Who needs this cover?

Any business that owns, leases, or operates commercial vehicles or business vehicles for business purposes. This includes small businesses that own a single vehicle, companies that operate a fleet of vehicles, and businesses that have employees use their own vehicles for work purposes.

Yes, in New Zealand, these policies also cover personal use. This means that if a vehicle primarily used for commercial purposes is also used for personal tasks, such as running errands or travelling to non-work-related destinations, the vehicle is still covered under the policy. However, it’s important to note that the specifics may vary depending on the insurer and the individual policy. Therefore, it’s always wise to check the details of your policy or consult with your insurance broker to understand the full extent of the coverage.

Personal auto insurance typically doesn’t cover vehicles used for business or commercial purposes. Therefore, it’s crucial to get separate commercial cover to ensure proper coverage. Commercial cover also covers personal car use so you aren’t losing out.

How do I get a commercial vehicle quote?

You can usually get a quote for commercial vehicle cover in 5 minutes or less by calling us or filling out our online application.

Our policies typically include benefits such as an emergency accommodation allowance, medical costs, load recovery, defence costs and new vehicle replacement if your vehicle is less than one year old.

To obtain insurance coverage promptly, contact us. We may require you to provide some fundamental details about your business, such as:

  • The name of your business
  • The make, model and registration of the vehicle
  • The amount you want to insure the vehicle for 
  • What you are using the vehicle for
  • Your claims history

What does it not cover?

There are certain key areas where commercial vehicle insurance may not provide coverage:

Personal Items

If personal items are stolen from your commercial vehicle, these are usually not covered.

Intentional Damage

Damage caused intentionally to your commercial vehicle is not typically covered.

Unlicensed Drivers

If the driver of the commercial vehicle at the time of an accident doesn’t hold a valid license, the insurance may not provide coverage.

Normal Wear and Tear

General aging, breakdowns, or damage due to lack of maintenance are not covered.

What Vehicles Can You Cover?

We can cover anything that that moves. Common vehicle brands we cover include: 

Faqs about business motor vehicle insurance NZ

A deductible, also known as an excess, is the amount you’ll have to pay out-of-pocket before your insurance coverage kicks in when you make a claim. The amount of your deductible can often be adjusted based on your preferences, and it typically affects the premium you pay.

Under most business vehicle insurance policies, anyone with the appropriate license and your permission is covered to drive the business vehicle. However, it’s always prudent to check your specific policy or consult with your insurer or broker to ensure you understand who is covered under your insurance policy.

Agreed value and market value are two options for determining how much your commercial policy will pay out in the event of a total loss. Agreed value is a specific amount that you and the insurer agree upon when you take out the policy. It doesn’t change over the policy period. On the other hand, market value is what it is worth at the time of the loss, taking into account factors such as its age, condition, and mileage. This value can fluctuate over time, and it’s typically calculated based on the average resale value of similar vehicles.

On the other hand, professional indemnity insurance is designed to protect professionals who provide advice or services to their clients. It covers legal costs and damages awarded to a client if they sue you for a mistake you’ve made in the course of your professional duty, such as giving incorrect advice or making a professional oversight

In New Zealand, te sum insured should be stated exclusive of Goods and Services Tax (GST). If you are paid out following an insured event, the insurance company will add the GST back on when they pay you out. There are some insurance companies that are the exception to this. To find out you can search for the GST section in your policy wording or talk to us. 

Yes, if you have selected the ‘Loss of Use’ cover in your policy, the insurer will pay for a rental following an accident. However, it’s important to note that if you are at fault in the accident, there is typically a one week stand down period before the rental cover comes into effect. If you are not at fault the other parties insurer may be legally liable to pay your the vehicle hire. However in most cases you will have to incur these costs and then seek reimbursment.

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