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.

Types of van insurance

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:

• The driver’s age - statistics demonstrate that younger people with less road experience are more likely to have, or be involved in, accidents, making them an increased risk on the roads. Insurance providers generally charge more if you’re under the age of 25, and some set a minimum age of 21
• Where the van is stored - if your van is kept in an area with a high crime rate, your premiums will be higher than drivers living where there are fewer thefts. Storing your van in a garage overnight may reduce the amount you pay
• The insurance group of your van - as with other road vehicles, vans fall into different numbered groups that will influence the insurance quote you’ll receive. The higher the number, the more you’ll pay for your premiums, and the criteria for each group is based on the van’s engine size and performance, weight and so on

How to reduce your van insurance price

With the price of everything on the rise, it pays to think carefully about how to reduce costs and get yourself some cheap van insurance. Here’s our top tips on how to reduce your insurance.

Pay more voluntary excess

Agreeing to pay out more in the event of an accident can really reduce your premiums. It will cost more if you have to claim, but increasing your excess is well worth considering.

Opt out of automatic renewals

Automatic renewals can be a good idea, but they also allow the service provider to increase the price without you realising. Before the renewal date, shop around to ensure you’re getting the best deal.

Reduce your risk

You can make your van more appealing to the insurance provider with a little planning. Install an alarm system, and a tracking device, and park it in a secure location overnight. This lessens the likelihood of it being stolen, or broken into for tools, and your premiums should drop as a result.

Empty your van at night

Removing any tools and equipment from your van at night and adding a notice to this effect makes it less tempting to thieves and may reduce your premiums.

Think about the size of your van

Small vans usually cost less to insure than larger, more powerful vehicles, so consider the size of the van you require. Smaller vehicles are also cheaper to run - win/win!

Join a trade body

Some providers offer discounts if you’re a trade organisation member, such as the National Inspection Council for Electrical Installation Contracting (NICEIC). Always check to see if there are any special offers available.

Check your named drivers

If you have a named driver on your policy, ensure that they are over 25 years old and have no history of insurance claims. This will keep your provider happy.

Build up your no claims bonus

Having an excellent no claims bonus is a simple way to keep your premiums cheaper. Your bonus will keep building if you don’t need to claim on your insurance. Some providers allow you to transfer your car’s no claims bonus to your van, if you have a car.

Think carefully about any added extras

Insurance policies often have a long list of optional extras, and while some may benefit you, consider which ones are costing you needlessly. These extras include windscreen cover, replacing a lost key, tool cover or allowing you to claim if you use petrol in a diesel engine or vice versa.

Choose your policy length wisely

Temporary insurance is perfect for when you only need a van for a short period, with Cuvva’s policies available from one hour, to daily cover up to 28 days.

If you need something a little longer term, be careful of the allure of pay-monthly van insurance. Some insurers are sneaky, and just divide an annual bill into 12 before adding interest on top.

PS - if you're new to vans, here's some beginner tips on how to drive a van.

Want to see what you could save on your van insurance? Get a quote.