Why does the plated weight of a commercial vehicle impact on the premium charged?

The impact of the plated weight of a commercial vehicle on the premium charged can be attributed to several risk factors associated with larger vehicles.

The first point is that a larger plated weight often correlates with a greater potential for severity in the event of an accident. Heavier vehicles generally have more mass, which means that in a collision, they can cause more significant damage to other vehicles, property, or even injure individuals involved. This potential for higher severity influences the insurer's assessment of risk, driving up the premium as the financial implications of potential claims increase.

Secondly, larger vehicles also tend to have higher repair costs. This is not only due to the vehicle's size but also because heavier vehicles often have more complex systems and parts that may be expensive to replace or repair. Insurers analyze these factors in calculating premiums, recognizing that the likelihood of costly repairs is heightened with larger, heavier vehicles.

Overall, both the increased severity of accidents and the higher potential costs of repairs directly contribute to higher premiums for vehicles with larger plated weights. This comprehensive understanding helps insurers manage their risk exposure while ensuring they can cover potential claims adequately.