With university tuition fees at an all-time high and the value of a degree in rapid decline, more and more young people are heading straight from the classroom to the workplace.
Some of them are choosing to set up their own businesses immediately while others are hoping to learn the ropes from being employed by another company to begin with.
Employing a young person can often be a huge asset to a team – they are usually filled with enthusiasm when they start their new job, keen to learn new things, and easy to mould into the type of employee that the business needs. This is why a lot of small businesses choose to hire younger applicants.
Most services for example – whether it is a plumber, a window cleaning business, a cleaner, an ironing business, or a technician – need to be able to travel around the country visiting different customers, always with the relevant tools and equipment on hand. They also need lots of technical and large equipment to be taken to every appointment which inevitably means travelling in a van.
While the cost of the van and the equipment is consistent regardless of the individual employee, unfortunately the insurance can be very different if the employee is under 25 years of age.
As with any type of insurance, insurers take into account the age and driving experience of individual applicants. Due to general statistics that show the under-25s are more likely to be involved in an accident, their insurance can be unfairly overpriced.
Furthermore, including a person who is under 25 with very little driving experience tends to bump up the cost of “any driver” van insurance policies. Being over 21 is considered an advantage, but premium will still be more expensive than they are for older drivers.
At Insure 365 we recognise that this is a huge problem for both young individuals and businesses looking to hire them which is why we provide specialist schemes for 17-24 year olds who require van insurance at reasonable rates.
Remember as well as the age of the drivers, the purpose of the van will also significantly impact on how much the costs are.
As you probably know, van insurance is divided into types of cover and classifications depending on how it will be used. If you are unsure about what type of van insurance you need to purchase you can find more information in our Quick Guide to Van Insurance.
The van itself will also be taken into consideration when arranging insurance partly because it is assumed that a larger vehicle is more difficult to control. Therefore if you are hoping to employ somebody young then it might be a good idea to provide them with a smaller van for both insurance and safety purposes.
Other factors of the van that might be considered include the following:
- The age of the van – obviously the newer it is, the safer it is assumed to be
- Details of the driver – as well as the age of the young driver, insurers will also consider the area where the van will be driven, the previous experience of the driver including any claims made, no claims bonus
- Previous convictions – naturally without any convictions the insurance will be kinder.
If you are truly concerned about insurance costs then avoid purchasing additions for your policy such as breakdown cover or legal expenses. Another tip is to increase your excess because the higher your excess the lower the price of your van insurance for young drivers. However, don’t be tempted to make your excess lower – the last thing you want is a large bill if something was to go wrong.
If you have any questions or would like more information about young people’s van insurance, please contact us on 01782 207 800.
Insure 365 specialise in finding cheap insurance for people whom other insurance companies usually severely penalise, such as drivers with previous convictions or those who are under 25.
However, many small businesses rely very heavily on being able to move from one location to another, and this usually requires carrying a lot of equipment.