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

Van insurance

Have you thought about how much you are paying for your van insurance; have you reviewed the policy recently; or is the policy just something you reluctantly renew each year simply because the law requires you to have a minimum level of third party insurance?

If you run a van to help with your business you probably know what an invaluable workhorse it can be. By the same token, adequate insurance cover for such a business asset probably makes a great deal of sense after all. The good news is that, with a little research and a review of just what you need to protect that asset, reasonably priced insurance need not mean skimping on the cover you buy.

Although your insurer obviously needs to know that the vehicle will be used for business purposes, there are the same options regarding the level of cover available for a commercial van as a private car: namely, third party only, third party, fire and theft and comprehensive insurance (depending on the value of the van you want to insure). Once you have made this basic choice, there remain a number of other areas in which you can ensure you are getting the best value for money for your van insurance.

One detail that is sometimes overlooked, for example, is that some insurers will offer a discount on the premiums for something as simple as painting your business logo on the side on the vehicle. Further discounts could be available by fitting security and immobilisation devices to prevent or deter theft. If you elected for comprehensive cover, most policies will include cover for the theft of personal possessions (up to a certain limit of value) from the van, but it should be remembered that most will specifically exclude the theft of the tools of your trade (which you will probably avoid leaving in the vehicle for any length of time and for which you might wish to consider separate insurance).

As with all motor insurance, the premiums you pay will also depend on the size and type of the commercial vehicle. Different insurers will have their own different ways of categorising commercial vans, but a common and quite useful rule of thumb is to think in terms of small, medium and large vans, typically up to 3.5 tonnes in unladen weight.

In assessing the risk, insurers will also, of course, need to know who will be driving the van and where it is going to be used. If there are only named drivers on the policy, of course, discounts can be secured for safer, claims-free drivers and many insurers will, in fact, allow the transfer of any no-claims discounts from the insurance on a private car to the van insurance. Although many insurers will limit the full cover provided by the van insurance to the territorial UK only, most will also offer as an option, and the payment of an additional premium, the same level of cover when driving throughout the whole of Europe.