Are you looking for information on van insurance? This guide will tell you everything you need to know before purchasing a van insurance policy.
Do I really need van insurance?
If you are planning on driving a van on the road then van insurance is a legal requirement under the Road Traffic Act. Any vehicle on the road must have insurance to protect other road users in the event of an accident. Van insurance also provides you with the peace of mind that you are doing your utmost to ensure that you are protecting both van and driver from any of the dangers of driving on the road.
If you use a van as part of your business then it makes perfect sense to protect any valuable assets. Your van is part of your livelihood and you need to safeguard your business assets against any losses or damages.
What will happen if I don’t have van insurance?
You are breaking the law if you don’t have the insurance for your van. You are required by law to insure against the possibility of injuring another person or their property. Failure to have the correct insurance for your van could leave you facing a fine along with having penalty points added to your licence. Along with the legal implications, you also need van insurance to protect you against any potential financial losses incurred if you are involved in an accident.
Are there different types of van insurance?
There are three main types of van insurance if you are living or working in the UK. These are:
• third party
• third party, fire and theft
• and fully comprehensive van cover
Third party van insurance is the most inexpensive van insurance available and is also the minimum insurance required by law. This type of insurance covers your liability for damage to another person’s vehicle or property. If your van is involved in an accident it will also cover any injury to another person. While this type of insurance covers the necessary level to satisfy the law it does not cover damage to your van or loss or theft of the vehicle.
Third party, fire and theft insurance covers exactly the same as third party insurance. The main difference is that this insurance covers the cost of repairing a van damaged by fire along with the loss and theft of your van.
Fully comprehensive van insurance is the most expensive policy, however, it is also the most inclusive and comprehensive policy you can purchase. The fully comprehensive policy includes third party, fire and theft and also pays for repairs to your van if it is involved in an accident.
This policy also includes extra cover for personal items left in your van, medical and legal expenses and a replacement vehicle if your van is off the road. This type of cover can prove to be invaluable if your main business activities involve you using your van.
How can I lower the costs of my van insurance?
How much you pay for your van insurance depends of a number of factors. These factors include:
• The make, model, engine size and value of your van
• Security for your van.
• The mileage on your van
• What you intend to use the van for
Your address will also be taken into account by insurance companies. Your insurance company is also likely to consider who will be driving the van, the age of the vehicle’s driver, any previous criminal convictions the driver may have had and any previous accidents the driver may have been involved in.
It might be possible to reduce the cost of your van insurance policy if you pay a higher voluntary excess in addition to the compulsory excess. Generally, the higher the excess you agree to pay the cheaper your insurance premiums will be.
You can also reduce your insurance premiums by fitting an alarm and immobiliser. You may also find that your insurance premiums are lowered if you choose a vehicle with a less powerful engine.
Depending on the insurance company, you might also find that if you can demonstrate that you have solid experience driving other company vehicles that you might get a discount. Similarly, if you have built up a no-claims bonus in a car you might also find your insurance premiums lowered.
Will van insurance cover items left in the van?
If you are tradesman then comprehensive van insurance may cover you up to a certain amount for tools carried in your van. If you have a lower level of van cover, such as third party, or your tools are particularly valuable, you’ll need to take out additional cover.
Similarly, if you carry goods in your van, you’ll have to take out cover specifically for them.
Will my van insurance offer a courtesy vehicle?
This is again dependent on the insurance policy and company you choose. If your work or business requires you to drive on a regular basis then it is worth considering taking out a policy that provides a replacement vehicle.
What extras should I consider when insuring my van?
When choosing van insurance you might want to look for a policy that includes:
• legal assistance to cover legal costs that could follow an accident.
• breakdown cover
• insurance for the tools of your trade or goods carried in your van
• no-claims discount protection
• European cover, if you intend to drive your van abroad
What is a no-claims bonus?
If you have been driving for a while and haven’t made a claim on your van insurance then you could be entitled to a no-claims bonus. This discount on the cost of your van insurance policy reflects the fact that your insurance company regards you as a safe driver and less of a risk than other drivers on the road.
Depending on the length of your no-claims bonus it may be possible to find an insurance company who will allow you to protect your claims by purchasing an additional premium for a much lower cost. This will allow you to make a claim within a set time period without losing any of your discount.
What is an excess?
All van insurance policies will expect you to pay the first part of any claim. This is known as a compulsory excess. The amount this will cost is entirely dependent on the individual policy purchased from a particular insurance company.
