Comprehensive Motor Vehicle Insurance

Comprehensive motor vehicle insurance is the foundation of any HGV insurance programme. Without it, a single serious incident — a motorway collision, a rollover in the Mackenzie, a fire in your cab — can write off a vehicle worth hundreds of thousands of dollars.

Agreed value vs. market value

This is the most important decision in your motor vehicle policy. Market value policies pay what the insurer determines your vehicle is worth at the time of loss — which, after depreciation, may be significantly less than what you paid, and even further from the cost of replacing the vehicle.

Agreed value policies pay the amount you and the insurer agree upfront, recorded in the policy schedule. For a working HGV, agreed value is essential. If your 2022 Kenworth is written off, you need enough to replace it — not a depreciated market value settlement that leaves you $60,000 short of a comparable replacement.

In the current market (2025–2026), with new vehicle lead times running 12–18 months and secondhand prices elevated accordingly, agreed value at full replacement cost is more important than ever. Your broker should advise on replacement cost for your specific make, model, and specification.

Excess structures

Every policy has an excess — the amount you pay when you make a claim. HGV excess structures are typically higher than car insurance: $2,000–$10,000 standard excess is common for heavy vehicles. Some policies have a higher excess for young or inexperienced drivers, or for specific vehicle types (logging trucks, tankers).

Electing a higher voluntary excess in exchange for a lower premium can make sense for operators with strong claims histories and the cash flow to absorb an excess payment. For smaller owner-operators with limited reserves, keeping the excess manageable is more important than premium savings.

Multi-driver policies

If your vehicle is driven by multiple drivers — or if you use relief drivers — make sure your policy covers all relevant driver profiles. Named driver policies restrict cover to listed individuals; open driver policies cover any licensed driver you authorise. For operators using relief drivers or running multi-shift operations, open driver cover is usually necessary.

Vehicle modifications

Standard policies cover vehicles as presented. If your vehicle has been modified — a custom body, additional equipment, bullbars, fuel tanks, telematics systems, refrigeration units — these must be declared. Undeclared modifications may not be covered, and in some cases may void the policy if they materially affect the risk.

What happens after an accident

When you have a claim, your insurer will appoint a loss adjuster for significant claims and direct you to their approved repairer network for lesser damage. Agreed value policies are straightforward for total losses: the agreed amount is paid less any applicable excess. For partial losses, the insurer pays repair costs less excess.

Make sure you understand your policy's position on choosing your own repairer vs. using the insurer's network — some policies restrict choice of repairer, which can matter if you have a specialist truck body or a relationship with a particular workshop.

Frequently Asked Questions