Which insurance protects your vehicles?

Self-employed professionals and entrepreneurs frequently travelling with commercial vehicles and cargo should choose their insurance coverage with caution. Although civil liability insurance for vehicles is required, there are additional options for those seeking peace of mind while driving on our roads.

Civil liability (CL) insurance for vehicles

Compulsory insurance

The term ‘car insurance’ typically refers to the mandatory Civil Liability (CL) vehicle insurance. All registered vehicles, including cars, vans, lorries, and other registered vehicles such as scooters or speed pedelecs, must be insured for third-party liability.

What does the insurance cover?

The civil liability insurance for vehicles includes damage to third parties, which includes passengers in your vehicle. 

It is essential to distinguish the various uses of your vehicle: is it intended for private or business purposes, or both? If your vehicle is insured for private use, you will not be covered for business travel. It is also crucial to specify whether the vehicle is used for transporting goods (either for your own account or on behalf of a third party) or for carrying passengers.

Companies can insure their vehicles in two different ways:

• 1. With a designated driver: if only one person drives the vehicle.
• 2. Without a designated driver: anyone in the company can drive the vehicle. This option is particularly practical if a vehicle is made available to the company, for instance.

Fully comprehensive insurance

Compulsory insurance (i.e. omnium) does not cover damage to your own vehicle. For that, you require fully comprehensive cover. This includes all the guarantees of the so-called ‘mini comprehensive‘ (glass breakage, theft, fire, natural events, and collision with an animal), alongside vandalism and ‘material damage’, for which no one is theoretically liable.

When you take out a fully comprehensive insurance, you need to pay attention to 3 points: 

• Insured vehicle value: a vehicle can be insured according to its invoice value or catalogue value. The insurance premium is higher for a vehicle insured based on catalogue value, but it provides better compensation in the event of a claim (actual price of the car, excluding discounts).
• Degressive terms: 6, 12, 24, or 36 months. In the event of a total loss of the vehicle, compensation is based on its value. A car depreciates rapidly. With a 24-month plan, for instance, compensation in the event of a claim is calculated at 100% of the vehicle's value for the first two years. After that, a degressive percentage will be applied (between 1% and 2% per month).
• The excess is outlined in the special conditions. In the case of a fraudulent claim, you will need to pay an excess before the insurance company can step in. A higher excess lowers the cost of the insurance contract but necessitates a greater contribution from you when making a claim.

Driver insurance

If you are the individual responsible for an accident, the compulsory vehicle civil liability insurance will not cover your own physical injuries. However, supplementary driver insurance will. Consider, for instance, the impact on your income if you are unable to work.

Legal assistance

A car accident or traffic violation can lead to disputes. Legal assistance cover comes in handy in such situations. Initially, the insurer attempts to reach an amicable settlement with the other party. If unsuccessful, the legal assistance insurance will provide both administrative and legal support. For instance, court fees and your solicitor’s fees will be reimbursed.

Assistance and breakdown assistance

Although the mandatory CL insurance for vehicles provides a minimum level of assistance in the event of an accident, it does not assist you in cases of a puncture, flat battery or mechanical breakdown. Therefore, it is advisable to take out roadside assistance cover for such situations. Some policies also cover the cost of a replacement (commercial) vehicle.

Cargo insurance

In your business activities as an entrepreneur or self-employed professional, you transport valuable cargo in your vehicle. But what happens if something goes wrong along the way? An accident could damage your work equipment or your finished products. And what is your recourse if the contents of your van are stolen in a car park? Many questions, one answer: cargo insurance. It can also cover your liability under the CMR convention, which applies to road transport: in the event of loss, damage, or late delivery, you benefit from essential financial protection. Additionally, don't forget that certain forms of transport (refrigerated, subcontracted, or involving live animals) require specific cover extensions to ensure proper protection. 

Conclusion

Individuals who frequently travel for business can select from an extensive array of insurance covers. The mandatory civil liability insurance for vehicles is your initial step, after which you can determine which of the optional covers best suits your needs: a (mini) comprehensive policy, driver insurance, legal assistance, breakdown assistance, and/or cargo insurance. 

Insurance is a complex subject, and it's not always easy to find your way around. Luckily, you can seek advice from your insurance broker.

^{This content was enhanced in 2025 with further insights from insurance broker Yago.}