Truck and heavy vehicle insurance: a plain guide

What truck and heavy vehicle insurance is and who needs it

Truck insurance covers rigid trucks, prime movers, trailers and other heavy vehicles used for work. Owner-drivers, transport companies, tradespeople with tippers and farmers with trucks all buy it. Operators with several vehicles usually insure them together as a fleet.

One cover is compulsory. Compulsory third party (CTP) insurance is required to register a motor vehicle in every state and territory. It covers injury to people, not damage to vehicles or property. How it is bought depends on the state. In NSW it is bought from a licensed insurer as a Green Slip. In some other states it is included in the registration cost.

Everything else is optional in law. Finance companies and freight customers commonly require it by contract.

What is usually covered, and common exclusions

Cover is built from several parts:

  • Comprehensive vehicle cover: damage to your own truck and trailers, and damage you cause to other people's property.
  • Third party property damage: damage to other people's property only, sometimes with fire and theft.
  • Trailers not owned by you: cover for trailers belonging to others while you tow them.
  • Downtime: a hire vehicle or a daily payment while the truck is being repaired.
  • Goods in transit or carrier's liability: loss of or damage to the load. This is normally a separate policy.
  • Public liability: for loading, unloading and work away from the vehicle.

Common exclusions and conditions:

  • drivers who are unlicensed for the vehicle class, or who are younger or less experienced than the policy allows
  • overloaded or unroadworthy vehicles
  • mechanical breakdown and wear
  • the load itself under the vehicle policy
  • dangerous goods, unless declared
  • travel outside the declared operating radius.

Vehicles can be insured for agreed value or market value. Moneysmart explains that an agreed value is a fixed amount set with the insurer, and that it may be reduced at each renewal.

How it is sold, and when a broker is the usual route

  • Brokers: most heavy vehicle and fleet cover is arranged by brokers, many of them transport specialists.
  • Underwriting agencies: specialist heavy motor agencies write cover on behalf of insurers, largely through brokers.
  • Direct insurers: a few insure single trucks or light commercial vehicles directly.

A broker is the normal route for prime movers, fleets, interstate work, dangerous goods, and any operator who also needs load and liability cover arranged together. Brokers and agencies must hold an Australian financial services licence or be an authorised representative. Check on the ASIC professional registers.

What makes this cover hard or expensive to get

  • A new business with no insurance or claims history as an operator.
  • Young drivers, or drivers new to the licence class.
  • Past at-fault claims or serious driving offences.
  • Long-distance and interstate work.
  • Higher-risk tasks such as tipping, logging, livestock and dangerous goods.
  • High vehicle values and specialised bodies or equipment.

Insurers commonly ask for each driver's licence and claims history. Business policies generally carry a duty of disclosure. Give complete answers and add new drivers and vehicles before they go on the road.

Questions to ask before buying

  • Is each vehicle insured for agreed or market value, and does that include the body and fitted equipment?
  • Which drivers are covered, and what age or experience limits apply?
  • Are trailers I do not own covered, and to what value?
  • Is the load insured, and under whose policy?
  • What operating radius and types of freight have been declared?
  • Is downtime or a replacement vehicle included?
  • What excess applies to each driver?
  • What is the broker paid?

Where to complain

Complain to the insurer in writing first and ask for its internal dispute resolution process. Complain to the broker about the broker's own service.

The Australian Financial Complaints Authority (AFCA) is the free external complaints body for insurance, and accepts complaints from small businesses with fewer than 100 employees. Its rules do not cover every commercial policy, and it cannot consider CTP insurance. Call AFCA on 1800 931 678 to check. CTP disputes go to the state or territory CTP regulator.

Find a licensed broker

Browse businesses licensed to arrange general insurance in your city, or search every state.

Sources

Last checked: 2026-10-06

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