Van insurance explained

Buying van insurance can often be more complicated than insuring your home or car, with quotes from different companies varying widely for the same vehicle.

The insurers work out premiums based on ‘rating factors’, which are how the insurer scores you as a risk.

For instance, large vans are more expensive to insure than smaller vans because insurers consider small vans have less accidents as they are easier to control.

Commercial van insurance comes as third party, fire and theft or comprehensive cover, which means that you will be covered for third party injuries or damage, and public liability, as well as theft of your vehicle or fire damage.

To complete a van insurance quote you will need to say how many miles you use your vehicle for business purposes, like that of annual mileage the greater amount you do the more of a risk you are.

What you carry in the van will also have a bearing on your insurance – if you carry hazardous or toxic cargo, the risk increases and so does the premium you pay.

Who drives is another key factor – if your drivers have points on their licences or have had special conditions on their policies, up goes your premium again. One of the last types of policy you want to consider is an ‘any driver policy’ as this always costs more than named drivers.

Like car insurance, where you live, what you carry in the van and where you keep it are all factors that contribute to your premium.

Personal factors like age also affect the premium.

You can try and keep you van insurance down by:

• Not buying a van that is any bigger than you really need
• Fitting insurance company approved anti-theft devices
• Not changing vehicles – older vehicles generally receive lower quotes
• Keeping proof of your car driving no claims bonus – some van insurers will give you a like for like discount
• Taking on a higher voluntary excess – you may pay more in the event of an accident but your premium will be less.
• Keeping a van driving log. If you can show you have driven a van before you are less of a risk and can get a lower premium.
• Shopping online for van insurance – as with many other types of insurance, the provider passes on the broker commission saving to you. Always put your details in to more than one comparison site as well, because not all companies show on all the comparison sites.

Some insurance companies may offer a ‘free extras’ package bundled in with the policy like replacement vehicle cover, free legal advice and free tools cover.

These bundles are cost-effective if you need them, but it’s likely the basic insurance will be more expensive and the freebie bit will make comparison with policies that are not offering incentives more difficult.

Summary:

• Keep the van size and weight down for a cheaper quote
• Shop online for a discount
• Do you need a new van – older vehicles are cheaper to insure
• Screen your drivers carefully – their driving history affects your premium