Advice
Van Insurance Explained
Lots of people find insuring a vehicle a bit of a pain. Knowing your options and what to expect can help you choose the right policy for you. Here we explain everything you need to know about van insurance to help you get a good deal.
Words by: Auto Trader
Additional words by: Tom Roberts
Last updated on 2 May 2024 | 0 min read
In this easy guide we will explain:
- The two main types of van insurance. - The levels of cover you can expect to be offered. - And some tips for lowering the cost of your van insurance premiums. Once you have read this you should feel much more confident when it comes round to insuring your van. Let's take a look.
- The two main types of van insurance. - The levels of cover you can expect to be offered. - And some tips for lowering the cost of your van insurance premiums. Once you have read this you should feel much more confident when it comes round to insuring your van. Let's take a look.
How to choose commercial insurance or private insurance.
Vans serve a wide range of purposes, what you use your van for will impact your insurance options and price.
Insurers will want to know if you intend to use the van for commercial purposes or as a personal vehicle.
Insurers will want to know if you intend to use the van for commercial purposes or as a personal vehicle.
Private Insurance
If you are not planning to use your van for any aspect of your work, you can take out personal insurance.
What is using a van for commercial purposes?
If you are planning to use your van for any aspect of your work, you will need to take out commercial insurance. This includes using your van to travel between different work locations. Even if you are not using the van for the work itself. For example, if you use a van to drive to and from jobs, you will need to take out commercial insurance.
Commercial Insurance
If you require commercial insurance, there are two main types of coverage to choose from.
1. Carriage of your own goods insurance Carriage of your own goods insurance will cover the tools of your trade as well as any personal possessions you may keep in the van. It will cover either raw materials or finished products, as well as any waste materials that you may be transporting for disposal. 2. Haulage or courier insurance If you are carrying goods on behalf of a company, you will need either haulage or courier insurance. These cover items in your van that do not belong to you. The difference between the haulage and courier categories is based on the number of drop-offs made during the journey. If you make more than three drop-offs a day, it is likely you are considered a courier for insurance purposes.
1. Carriage of your own goods insurance Carriage of your own goods insurance will cover the tools of your trade as well as any personal possessions you may keep in the van. It will cover either raw materials or finished products, as well as any waste materials that you may be transporting for disposal. 2. Haulage or courier insurance If you are carrying goods on behalf of a company, you will need either haulage or courier insurance. These cover items in your van that do not belong to you. The difference between the haulage and courier categories is based on the number of drop-offs made during the journey. If you make more than three drop-offs a day, it is likely you are considered a courier for insurance purposes.
What are the main types of insurance cover?
There are three main types of van insurance, each offering a different level of cover.
1. Third-party only This is the most basic type of van insurance and the minimum required by law. It covers you for any damage you might do to another vehicle, but it will not cover the cost of repairing your own vehicle. It also will not cover accidental damage, fire, theft, or loss of items within the vehicle. 2. Third-party, fire and theft This is the same as third-party insurance, but it will also cover you in the event of fire or theft. 3. Comprehensive Comprehensive van insurance gives you all the protection of third-party, fire and theft insurance. It will also cover the costs of repairing your van if it is involved in an accident. Some comprehensive policies come with other extras like breakdown cover and windscreen protection. This is up to the individual insurer, so do check the policy thoroughly to make sure it includes everything you need.
1. Third-party only This is the most basic type of van insurance and the minimum required by law. It covers you for any damage you might do to another vehicle, but it will not cover the cost of repairing your own vehicle. It also will not cover accidental damage, fire, theft, or loss of items within the vehicle. 2. Third-party, fire and theft This is the same as third-party insurance, but it will also cover you in the event of fire or theft. 3. Comprehensive Comprehensive van insurance gives you all the protection of third-party, fire and theft insurance. It will also cover the costs of repairing your van if it is involved in an accident. Some comprehensive policies come with other extras like breakdown cover and windscreen protection. This is up to the individual insurer, so do check the policy thoroughly to make sure it includes everything you need.
How can I get a good deal on my van insurance?
Van insurance can be expensive, there is no getting around that. There are however a few steps you can take to try to reduce your premiums.
1. Take safety precautions If you are insuring your van against theft, insurers will base your quote on the likelihood of it being stolen. This is partly out of your control as it depends on crime rates in your area. However, you can still reduce the likelihood of theft by keeping the van in a locked garage overnight and fitting it with an alarm or immobiliser. Taking these precautions should result in a cheaper insurance quote. 2. Build up a no-claims discount Building up a no-claims discount is one of the most effective ways to save money on your van insurance. The longer you go without making a claim, the more you are likely to save. 3. Choose a voluntary excess you can afford The excess is the amount you agree to pay towards the cost of any claim. All insurance policies come with a mandatory minimum excess, but you can volunteer to increase this. This means that you pay more in the event of a claim, but the cost of your insurance will be lower. 4. Reducing your mileage The more time you spend on the road, the more likely you are to be involved in an accident. Taking steps to reduce your vehicle's usage can result in lower insurance premiums. 5. Pay annually Most insurance policies give you the choice of paying annually or in monthly instalments. Paying annually will save you money as you will not be charged interest on each instalment. We hope this guide has helped calm any insurance worries you may have had. You can read more about van insurance in our ‘tips for cheaper van insurance’ article here or find out more about ‘will my van insurance cover my tools’ here.
1. Take safety precautions If you are insuring your van against theft, insurers will base your quote on the likelihood of it being stolen. This is partly out of your control as it depends on crime rates in your area. However, you can still reduce the likelihood of theft by keeping the van in a locked garage overnight and fitting it with an alarm or immobiliser. Taking these precautions should result in a cheaper insurance quote. 2. Build up a no-claims discount Building up a no-claims discount is one of the most effective ways to save money on your van insurance. The longer you go without making a claim, the more you are likely to save. 3. Choose a voluntary excess you can afford The excess is the amount you agree to pay towards the cost of any claim. All insurance policies come with a mandatory minimum excess, but you can volunteer to increase this. This means that you pay more in the event of a claim, but the cost of your insurance will be lower. 4. Reducing your mileage The more time you spend on the road, the more likely you are to be involved in an accident. Taking steps to reduce your vehicle's usage can result in lower insurance premiums. 5. Pay annually Most insurance policies give you the choice of paying annually or in monthly instalments. Paying annually will save you money as you will not be charged interest on each instalment. We hope this guide has helped calm any insurance worries you may have had. You can read more about van insurance in our ‘tips for cheaper van insurance’ article here or find out more about ‘will my van insurance cover my tools’ here.