A Quick Guide to Van Insurance
At Insure 365 we provide competitive van insurance for drivers who own a van for personal use, for business use, or for both. We recognise that organising van insurance can feel confusing because there are many factors to consider that influence the type of insurance that you need. Here we have attempted to simplify these factors:
Why do I need to insure my van?
If you drive without van insurance then you can receive a fine and 6 penalty points on your licence. This will make finding insurance later more difficult and a lot more pricey.
Without van insurance the cost to you can quickly add up to thousands of pounds. After an incident has taken place injury costs, damage, and out of work costs can be extremely expensive so good insurance is vital.
What is commercial van insurance?
Commercial Van Insurance is the type of insurance that you will need if you use your van at work.
What if I don’t use my van for work?
Even if you do not use the van for business purposes and it is only used for holidays and other personal use, it will still need to be insured.
If you do not use the van for anything to do with work then you just need private insurance. Private insurance covers social, domestic, and pleasure activities. If you like to go camping or do other activities that require a van, but you never use the vehicle for work, then you need private insurance. Please bear in mind that if you regularly attend boot sales / sell from the van then you will need business insurance.
What if I do not use the van at work but only to drive there and back?
Even if the van is only used to transport you to and from work you still need commercial van insurance. If you have insured a car in the past then you will know that there are several types of insurance available to you including social, domestic, pleasure and the very useful commuting option. Unfortunately these do not exist for van insurance so if the vehicle is primarily for pleasure but also commuting you need business van insurance.
A further explanation of what is included in each of these options is explained here:
Third Party Only Insurance
This is the minimum level of cover legally allowed. It covers:
– Liability for injuries to others (including passengers)
– Damage to property
– Liability while towing a caravan or trailer
– It is the least expensive but also offers the least protection
– Does NOT pay for replacing / fixing the van in damage / theft
– You pay damage to victims involved in accidents that you are responsible for.
Third Party Fire & Theft
This will cover you for:
-Theft of your own vehicle / damage to van during theft of vehicle
-Accidents that you are responsible for: damage to another person or vehicle
-However if the van is stolen the insurer will still expect you to pay for the excess.
The most extensive van insurance, it covers:
-loss or damage to your vehicle
-damage to you even if the accident was your fault
-probably won’t include breakdown cover
Why Classification of van insurance do you need?
Carriage of Own Goods
Carriage of Own Goods covers your personal belongings that are in the car as well as the tools that you carry for the job. This policy is appropriate for individuals who simply drive to the office and return from it once a day.
Carriage of Goods for Hire or Reward
This covers all of your belongings including both those that you need for work (i.e. tools) or personal items such as a change of outfit or a suitcase. This type of cover is ideal for people who drive to various places throughout the day such as window cleaners or those who commute to the same place every day.
This is for situations where you are paid by a third party to use the van for single or multi-drop loads. You will need an insurance certificate to prove that somebody else is paying you to do this.
What is an excess?
An excess refers to what you are liable to pay towards any claim. In other words if you are involved in an accident that was your fault how much is the insurance company going to pay and how much are you as the driver going to pay? For example if you have an excess of £100 and the damage that you caused is worth £400 then you will pay £100 and your insurance company will pay £300.
A compulsory excess is when the insurance company decides that you must have an excess of a certain amount due to the details that you have provided about yourself.
How can I reduce to cost of my business van insurance?
You could increase your voluntary excess (defined above) because the higher it is, the lower your annual premiums. The obvious catch though is that by increasing your voluntary excess it means that in the event of a claim more of the costs will have to come out of your pocket.
You could also request if you can carry over your no claims and if you park your van in a garage rather than on a street then this should be reflected in a reduced price.
Another recommendation is that when you fill out insurance forms do not just tick the “any” box when providing information about other drivers who are to be insured on the vehicle. Provide as much detail as possible about the other drivers so that insurers feel that they can be confident in those drivers as well.