Higher Insurance Premiums for Haulage Vehicles
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THERE have, during the past few months, been many alterations in insurance rates, but the vehicles most affected are those which are subject to A licences. In the London and Glasgow areas particularly, the increase has been considerable.
For example, a well-known and reliable non-tariff house now requires no less than £40 for the comprehensive insurance of a 2-ton vehicle holding an A licence and garaged in the areas mentioned, whilst the thirdparty rate alone amounts to £21 10s. For C-licence holdeKs, however, the rates are far from exorbitant, the company already mentioned quoting £20 10s. for comprehensive .benefits and £13 10s. for third-party cover.
Why are the rates for A-licence , vehicles so heavy? The chief reason is that in an ancillary business a vehicle is often driven by one man, but seldom continuously all day. The haulage vehicle, however, often has several drivers, and, in many, cases, is running nighf and day. Consequently, more accidents are likely to occur, and in order to make the business profitable the insurance companies increase their rates.
What should the haulier do when faced with a heavy premium increase
of this nature? He would be well• advised to place his business in the hands of an insurance broker.
Fortunately, insurance companies are usually willing to treat each case on its particular merits, and the broker can often place such business at excellent rates. He knows from regular experience the best markets for this class of business, and, consequently, can nearly always obtain far better quotations than the-ordinary individual would obtain without his aid.
What is most important is that the broker makes no charge for this advice, although he is often able to save his clients considerable sums of money. That, however, is not all the assistance which the broker can give to his client. His experience is most useful when any accident occurs and he is always ready to give sound advice on these matters.
Finally, it must be remembered that, even if a case be placed at a satisfactory premium, there is nothing to prevent the insurance company from requiring increased rates when the policy falls due for renewal. Thus the helpful advice and experience of the broker may again be required.