The changing landscape of transport insurance

The changing landscape of transport insurance

The risks and losses in the transport industry can be massive, bringing devastation and financial trauma to individuals, families and businesses. Add to this evolving environment the rapidly changing technology and the shifting face of the workforce, and you can appreciate that risk reduction is a serious priority. It’s due to all these changes that the government has taken a renewed interest in safety, specifically focussing on the risks drivers face every day on the road. The introduction of electronic logging devices (ELD) to limit driver’s hours is a good example of this increased oversight and regulation.

What does this changing landscape mean?

Improved technology has helped to finetune driver risk profiles and increase driver safety. For example, technology has allowed better data to be collected via telematics, which is used to enhance driver risk profiles. At the same time however, rather than decreasing due to better data, premiums and claims have both risen. This situation may have something to do with increased driver distractions, where texting while driving and using audio-visual systems has led to increased fatalities and major accidents. So whilst improved technology can have its benefits, it can also create additional problems.

Another very noticeable change within the transport industry is the increased diversity and specialisation, adding to the complexity of tailoring policies to an individual or company’s exact needs. From small family run businesses to long haul carriers, risk profiles can change dramatically between drivers. These increasingly unique risk profiles might help to accurately tailor policies for individuals and companies, but they also require an in-depth understanding of the industry, and greater input and effort from providers.

Regulatory changes are also having a significant impact on the industry. These are mainly aimed at increasing driver safety by increased monitoring of driver behaviour on the road (for example the ELDs mentioned earlier). Then there are the new HVNL laws that have been amended in Australia to increase driver safety, increase the chain of responsibility and place due diligence obligations on executives within the transport hiring company.

What drivers need to know to reduce their risks

Whilst drivers face many challenges on the road, taking out an insurance policy to protect against any financial losses. Staying up to date with any regulatory changes in the industry and ensuring that their policies provide sufficient cover is essential to reducing their risks. Avoiding driver distraction, a known cause of accidents on the road is also another strategy that can benefit drivers enormously to reduce their overall risks.

It’s also important to realise that all providers are not the same and their policies may differ in significant ways. Cost is not an adequate gauge of the eventual value of a driver’s insurance policy within the transport industry. To provide adequate cover, providers consider a driver’s current risk profile, as this determines the type of insurance required and the premiums that need to be paid. Opting for cheaper premiums and less cover, isn’t the most sensible approach when trying to reduce financial risks in this industry.

To speak to an insurance specialist about your transport insurance requirements, find your local adviser today.

General Advice Warning

The information provided is to be regarded as general advice. Whilst we may have collected risk information, your personal objectives, needs or financial situations were not taken into account when preparing this information. We recommend that you consider the suitability of this general advice, in respect of your objectives, financial situation and needs before acting on it. You should obtain and consider the relevant product disclosure statement before making any decision to purchase this financial product.

Motor Insurance / Commercial / Heavy Motor Insurance

Policy provides coverage for physical loss, damage or theft to your vehicle. It can be extended to cover Loss Damage or injury to a third party.

Motor Insurance / Commercial / Heavy Motor Insurance

What is Motor Vehicle Insurance?

Motor Vehicle Insurance is specifically designed to cover registered and unregistered motorcycles, cars and trucks. There are two main types of cover that you can choose. The first covers the damage your vehicle could cause to other people’s property following an accident, plus related legal costs, this is called Third Party Property Damage (TPPD) cover.

The second type of cover will provide some level of protection to your own vehicle, depending on your needs. Comprehensive cover will pay for repairs or the value of your vehicle if written off or stolen. There is also an option available that covers damage due to fire or theft of the vehicle. Both Comprehensive and Fire & Theft Insurance automatically include TPPD cover.

Motor Vehicle Insurance is not compulsory, so you can choose the type of cover that’s suitable for your needs. If your vehicle is financed, the bank or finance company will often require Comprehensive Insurance to be in place.

It’s also important to remember that Motor Vehicle Insurance doesn’t cover personal injury to passengers or others or legal defence costs. This is often called Compulsory Third Party (CTP) Insurance and must be purchased before you drive the vehicle.

Why is Motor Insurance important?

Car accidents often happen, and people are injured, or vehicles are damaged or stolen. The damage to your car can be very expensive to repair, and you may also be responsible for repairing the other vehicle, as well as paying legal costs. Finding the money to pay for repairs, or to buy a replacement vehicle if yours is stolen, can be difficult.

Insurance is a way to manage financial risk. It’s easier to budget for an annual insurance premium than making sure you have enough money in the bank to pay for repairs or buy a new car – which could easily be tens of thousands of dollars.

So, whether you own a motorbike, a ute, or operate a fleet of trucks, some level of Motor Vehicle Insurance cover is essential.

What does Motor Insurance cover?

Motor Vehicle Insurance can come in different forms – for example, some insurers specialise in trucks, while others have insurance cover especially tailored for motorbikes. We recommend exploring your options to compare insurers and insurance covers.

The main types of insurance are:

Private Car Insurance - for individuals or families, with passenger sedans, SUVs, people movers, station wagons and utes not used for business. This can include specialist cover for unique or vintage vehicles rarely driven. Either Comprehensive or TPPD-only cover can be purchased. Optional extensions for the Comprehensive cover include extras on and in the vehicle, and hire of a replacement car for up to 21 days following the theft.
Motorcycle Insurance - for individuals, families or businesses that own or ride quad bikes, ATRs, dirt or road bikes. Either Comprehensive or TPPD-only cover can be purchased. Optional extensions for the Comprehensive cover include extras on and in the vehicle, and hire of a replacement bike for up to 21 days following the theft.
Commercial Vehicle Insurance - for large or small businesses that own or lease sedans, SUVs, utes and trucks. This policy can cover specialist vehicles such as mobile cranes, refrigerated transport, and trucks that can load and unload goods. Either Comprehensive or TPPD-only cover can be purchased. Optional extensions for the Comprehensive cover include extras on and in the vehicle, and hire of a replacement car for up to 21 days following an accident or theft.
Fleet Insurance - for large businesses that own or lease large fleets of sedans, utes, trucks and mobile plant. This policy is designed to cover a large number of vehicles, including specialist vehicles such as mobile cranes, forklifts, refrigerated transport and trucks that can load and unload goods. Either Comprehensive or TPPD-only cover can be purchased. Optional extensions for the Comprehensive cover include automatic cover for new vehicles, tools and equipment, extras on and in the vehicle, and costs to hire a replacement vehicle following accident or theft.

Insurance Advisernet is a specialist in all types of Motor Vehicle Insurance and can help you every step of the way.

Frequently Asked Questions

What is Motor Vehicle Insurance?

Motor Vehicle Insurance is a specialised cover designed for all types of vehicle owners to protect themselves from financial loss resulting from loss or damage to their vehicle. It also covers the costs of repairing other people's cars, trucks, or property if they are responsible for the accident, as well as legal defence costs.

What insurance is the best for my vehicles

Different people require different types of cover, depending on the level of protection they need and the type of vehicle. For example, motorcycle owners would consider some level of Motorcycle Insurance cover, while owners and operators of a refrigerated trucking company would consider Fleet Insurance.

Which are the key types of motor vehicle insurance?

While there are lots of different products on the market, the main categories are:

(1)   Private Car Insurance
(2)   Motorcycle Insurance
(3)   Commercial Vehicle Insurance
(4)   Fleet Insurance.

Why do I need motor vehicle insurance?

Motor insurance is a way to manage your financial risk. It’s often easier to budget for an annual insurance premium than making sure you have enough money in the bank to pay for expensive repairs or buy a new car, as well as any legal bills – which could easily add up to tens of thousands of dollars.

You must buy Compulsory Third Party (CTP) Insurance before you drive the vehicle if it is registered. The type of insurance and amount of cover will vary, depending on what you use the vehicle for, and the value and level of protection you need. If the vehicle is financed, Comprehensive Insurance is generally required.