Van insurance works basically the same as car insurance: it provides financial protection if your vehicle suffers damage, causes injury to a person or adversely affects their property.
Also just like car insurance, it’s a legal requirement. Driving without insurance just isn’t worth it. If you’re caught on the road without cover and go to court, you could receive an unlimited fine. Yikes.
It can also be quite costly, especially if you have an expensive van. Here are our top tips on how to reduce the price of your premium.
First, a quick lesson on the different types of van insurance. 👨🏫
Van insurance is either private (also known as personal) or business.
Private van insurance covers you to drive your van for social, domestic or leisure purposes only. This includes going to the supermarket, doing the school run, or heading off for a UK staycation - activities that aren’t considered work-related. Like car insurance, the types of private insurance are third party, third party, fire and theft, and comprehensive.
Business insurance (also known as commercial) is necessary if you use your vehicle for work. There are different types: Carriage of Own Goods (for if you’re carrying tools or equipment for your job), Carriage of Goods for Hire or Reward (for if you deliver goods) and Haulage (similar to the hire and reward but for drivers who deal with the same clients regularly).
Whether you decide to purchase a private or business policy, van insurance can be more expensive than cover for cars, and this is due to a number of factors.
Vans are often larger and more powerful than cars, making them harder and more costly to repair or replace in the event of an accident.
If your van is used for work purposes, such as commuting or courier services, it will generally have an increased mileage compared to a car. Also, the likelihood is that you won’t be able to avoid driving during the busier times - rush hour, for example. Unfortunately, both of these factors increase the potential of an accident, with the latter suggesting that it could be more serious. These risks cause your insurance premiums to be greater than those of a car - with some providers, that could be double the amount.
Many businesses have decorated vans, advertising their services, which, unfortunately, lets thieves know that there are likely to be tools and equipment kept in the vehicle. This increases the risk of theft and can also hike those premiums.
Other factors play a role in determining how much you’ll pay for your van insurance, and these include: