The Research Department analyses the features available on policies for commercial vehicles from major providers

The commercial vehicle market has become focused on niches and it is, therefore, becoming increasingly difficult to categorise each provider's product.

Data for the table is drawn from providers' comprehensive policies.

We have selected information which is relevant to a potential policyholder from a cross-section of the major commercial vehicle (or small van) providers.

The information selected is based on that envisaged as important for a broker, such as trailer cover, recommended repairers and courtesy vehicles. These are covers on which a product could be sold on merit.

From the table it can be seen that the size of vehicle allowed on the policies encompasses a broad spectrum of vehicles and risk.

Trailer cover is available on many policies, although the Road Traffic Act ensures that third party liabilities are covered anyway.

Although the cover provided does not evolve at quite the same pace as the ever changing private car market, a number of insurers are now taking the opportunity presented by the changes in regulation and 11 September to review their cover.

The majority of providers that have recently reviewed their policies, now include an exclusion in the third party section in respect of terrorism.

However, we have looked at the areas of cover that are more pertinent to the policyholder.

Claims service is an all important tool in marketing your product. When a small businessman loses his means of transport, it is important that he is back on the road in the quickest possible time.

Most insurers these days operate an approved repairer network although there are varying levels of service provided. Some insurers will ensure your vehicle is collected from the scene of the loss and transported to the repairer, some will ensure that you and your passengers are taken to your destination.

Norwich Union has just launched the new Your Van policy, which replaced its Premier Van contract for new business with effect from 1 July 2002.

The policy provided for a replacement vehicle, in the event of a loss, of a reasonably equivalent size for an extra premium. This ensures that the policyholder can carry on his business as usual in the event of an accident.

Cornhill Direct also provides this option, whereas the majority of providers courtesy car cover do not guarantee a vehicle of an equivalent size.

This article has a table of information, if you would like to download the article in a pdf format click on the links below.

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