Types of Van Insurance
Van insurance can be divided into two categories:
Private Van Insurance
This covers vans that are owned and used by private individuals. You'd choose this type of van insurance if your vehicle is used for social, domestic and commuting purposes. This can include things like hobbies, home improvements, transportation or other personal uses.
Commercial Van Insurance
This would cover your van if it's being used as part of your business activity. There will normally be optional extras included in this type of van insurance policy - to help cover your specific business needs.
Cover Options
As with car insurance, there are three main types of van insurance available.
Third party only van insurance: This would help cover you if you caused any damage to a third party (e.g. another driver or pedestrian) Your own van would not be covered by this type of insurance.
Third party, fire and theft van insurance: Same as third party only but would also cover you if your van was stolen or damaged by fire. Still doesn't cover your van if you're involved in an accident.
Comprehensive van insurance cover: Covers you for all of the above, but would also help cover costs if your van is involved in an accident.
Why you need it
Whatever you use your van for, it's essential that you have an adequate van insurance policy in place. Most van owners use their vehicle for business purposes and consider it to be a vital and valued asset. If anything happened to their van, it could cause great disruption to their daily work.
As with any vehicle, adequate insurance is a legal requirement when driving on public roads. If your van is stolen or damaged, or you cause an accident in your van - a sufficient van insurance policy could help you cover the costs. However, if your vehicle is also a necessity for your business - there are other insurance needs you might want to consider. For example, if you carry good or equipment, you may want to ensure these are covered whilst being transported in your van.
What does it cover?
There are several options available to you if you're looking for van insurance. If your van is part of your business, you may want to consider the benefits on offer with a commercial van insurance policy. These include:
Goods in transit
If you use your van to ferry around stock, this could be an important policy feature. If you were involved in an accident or your van was stolen - the loss of stock could be very damaging to your business. Goods in transit cover could help you with these expenses if anything happened to items while on board your van. Most commercial van insurance policies will not automatically provide cover for any goods or tools in your vehicle. Goods in transit insurance can normally be purchased separately and can often fall under a business insurance policy.
Hire and reward
It's important to declare any use of the vehicle for hire and reward e.g. acting as a courier. This can carry its own specific set of insurance needs and you may need additional cover.
Replacement vehicle
A van can be crucial to your business. If you rely on it to carry out regular business activities, it's worth considering this type of cover. If your van needed to be repaired or replaced - this could help give you a temporary vehicle in the mean time, saving you from forking out on rental costs.
Multiple drivers
If several different people need to drive the van as part of your business - a commercial van insurance policy might let you add additional drivers with little or no charge. Some may cover all your business drivers automatically (although you'll probably need to provide your insurer with their details)
Legal expenses
If there's an accident involving your van, you may face legal action. This cover could help with legal expenses in the event of any claims against your business vehicle.
Fleet van insurance
If you're operating a number of vans, a fleet van insurance policy may be a more cost effective option for you. By covering all your business vehicles under one policy, you could make savings.
Breakdown cover
This may be included in your van insurance policy or could be offered as an optional extra. With business vehicles often in use daily and regularly making long journeys - this could be a good precaution.
Gap insurance
If you have bought a new van and taken out finance on it, this could be a relevant insurance option. If you write off the vehicle, you might only receive the current glass's guide value - which could be less than the outstanding amount you owe on the vehicle. Gap insurance can help cover the 'gap' between the insurance write-off settlement and the outstanding finance amount
Handy hints
Size matters
Engine size, make, model and weight of your van can all affect the amount you pay to insure it. A large, high powered and high value van will normally equal higher premiums. Therefore, try to pick a van that's sufficient for your needs, but that's not too big for the task. If a smaller van will suffice - it will probably lower your van insurance costs.
No Claims Bonus
If you don't claim on your insurance policy you can build up a No Claims Bonus - which could allow you a discount on your premium. If you've already built up a No Claims Bonus on your car insurance policy - you may be able to mirror this when purchasing your van insurance.
Specific cover
Make sure your van insurance policy covers your specific business needs. What you use your van for and what items are on board will all normally affect your policy and your premiums. If you carry hazardous or toxic materials -some van insurance providers might not be able to offer you cover.
Security
Make sure your van is fitted with good security features - such as an alarm, steering lock and immobiliser. Good security measures can reduce the likelihood of making a claim and in turn could reduce your premium.
Voluntary excess
This is the amount you agree to pay out of your own money in the event of a claim. This can be in addition to a compulsory excess - which is an amount set out by the insurance provider. Typically, the higher the voluntary excess, the lower your premiums will be - although you would have more to pay in the event of a claim.
Driver honesty
There may be several employees who need to drive the van as part of your business. Drivers who are under the age of 25 or have previous convictions may push up the price of your van insurance. However, make sure you're honest about all driver details, as any undisclosed information could invalidate your policy. It's recommended that you take a copy of all driving licences belonging to new employees. Get new copies each year, just to make sure that none of your drivers have any serious convictions or are banned. If this is the case, it could come back on your company as an uninsured motor claim and your insurer may decline to pay out.
Know-how
Take a browse through our handy van insurance articles: