Buying Value for Money Van Insurance

Buying value-for-money van insurance means being ready to answer some key questions about you, the vehicle and your business.

Here are some key questions asked by van insurance companies and how the answers may affect the cost of your premium:

Private or business cover?

Van insurance companies will want to know if you are a private or business customer.

Private customers drive vans for personal use, while business customers can be sole traders or companies.

Once you have told the insurer whether you want private or business cover, don’t change the use without telling them or you could void the policy

Private cover is cheaper as the vehicle mileage tends to be less and the driver is insured rather than the vehicle.

Business customers pay more because they generally drive more miles and the vehicle is insured rather than the driver, as many businesses have a fleet of vans and employ more than one driver.

Rather than leave the option open for any driver, many businesses have a list of authorised drivers to keep costs down.

Sole traders come in the middle – insurer assume they will drive their van for business and personal trips.

TIP: Whatever your trading status, if you business has more than one van, ask for a multi-vehicle discount

Discounts or add-ons?

The best van insurance offers value for money and  is not often the cheapest policy.

Forget the price and look for the features you need for your van.

Add on the features you need and take away the ones you don’t to get the right price.

Don’t double on cover. For instance, if the van is under warranty with breakdown cover, don’t buy the same cover again as part of your insurance.

If you expect to drive the van overseas, make sure your cover extends to each country you drive through, not just the destination.

Points to check

Look through the small print for:

  • Limitations on the maximum load or type of load
  • Age of the vehicle
  • Engine size
  • Goods in transit cover
  • Personal possessions cover – ie tools and equipment you carry for business
  • Overnight storage – ie do you have to park the van in a locked compound or remove the load?

Comments are closed.