Business van insurance
While some of you might use your van for domestic purposes, most people drive them for work. Vans are an essential part of many businesses, whether it's transporting the tools needed for jobs or delivering goods to customers.
It's important to get the right level of insurance for your van, as failure to do so could affect the running of your business. If you don't drive your van for work, then you should get private van insurance. But if you're of the majority that do use your van for work, then read this guide to help you decide which type of business van insurance you should get, and how you could save money.
In This Guide:
- What types of business van insurance can I get?
- What level of cover should I get?
- Does business van insurance cover my goods?
- What extras can I get?
- How can I get cheap business van insurance?
What types of business van insurance can I get?
When it comes to driving your van for work, there are typically two kinds of cargo you can transport in the back. It could either be tools and equipment that you need for your own job, for example if you're a builder or plumber. Or it could be packages or goods you're delivering for somebody else, for example if you're a delivery driver. That's why there's also two main types of business van insurance to choose from:
Carriage of own goods
Carriage of own goods insurance will cover you if your van is used to transport your own business' goods. This could be the tools or equipment you need if you're a gardener, builder or other type of labourer.
Haulage insurance will cover you if your van is used to transport other people's goods. This could be if you're a delivery driver, or you work for a removal company.
Both these types of business van insurance will usually cover you if you ever use your van for social or domestic purposes too.
What level of cover should I get?
Just like with car insurance, business van insurance comes with three main levels of cover to choose from:
Third Party Only
This is the most basic level of cover and the minimum you are required to have by law. It will cover the cost of any damage caused to another vehicle, person or property in the event of an accident. However, it won't cover the cost of any damage to your own van. It also won't cover you if your van or its contents are lost or stolen.
Third Party, Fire and Theft
This level of insurance offers the same amount of cover as third party only insurance, but it also covers the cost of any damage caused to your own van in the event of a fire or a robbery.
This is the highest level of cover available, and not only covers the cost of any damage caused to other vehicles, people or property, but covers any damage caused to your own van, regardless of whether it was your fault or not. It also covers you if any damage is caused to your van by fire, or if your van is stolen.
While third party only insurance is the most basic level of cover, it doesn't mean it's always the cheapest; all insurers are different. Some insurance companies will see you as a higher risk driver if you decide to take out third party only insurance, as those with third party only are statistically more likely to be involved in an accident, and therefore you could end up paying more for less cover. It's always best to compare van insurance policies to make sure you're getting the best price for the level of cover you need.
Does business van insurance cover my goods?
Your van can be a popular target for thieves. It's important you cover the contents inside the van, and not just the vehicle itself. While each policy is different, regular private van insurance usually won't cover the goods or equipment you're transporting. You should always check with your insurer when getting a policy if your contents are covered, and you may have to declare which type of items you're carrying. If you fail to declare a particular type of good then you may not be able to claim if it was damaged, lost or stolen, especially if it's valuable.
If your insurance doesn't cover the contents of your van, you should add goods-in-transit insurance to your policy. If you're delivering goods for another company, then you should check with that company if they have covered the items you're carrying already.
What extras can I get?
Most business van insurance policies will allow you to add extra cover, depending on your needs. However, some insurers will include them in their policy, so always make sure you check what levels of cover are available to you when you compare van insurance quotes. Some of the extras could be:
Sat Nav Cover
A sat nav can be essential to many businesses, making sure that drivers can find their destination and get there on time. Sat nav cover will cover the costs if its damaged or stolen.
This will cover the cost of replacing your windscreen if its damaged. Driving with a cracked windscreen could result in a conviction and points on your licence.
This will cover the costs incurred if you fill your tank with the wrong type of fuel. If, for example, you put unleaded fuel in a diesel tank, you will have to drain the tank, replace it and fill it up with the right fuel, which won't be cheap.
This will cover you if your van happens to break down on the way to a job. Assistance will be sent to you, and if needed a replacement van will be sent so you can get to your destination.
Driving Abroad Cover
This will give you the same level of protection that you get in the UK while you're abroad. This is useful if you have to go to France or further afield for a job or delivery.
How can I get cheap business van insurance?
Van insurance can be expensive, especially if your business relies on multiple vehicles. Thankfully, there are a few ways you can reduce the cost of your business van insurance and help save some much-needed money for your company.
As a general rule, the bigger and more powerful your van is, the more you'll have to pay to insure it. Consider what size of van you need for your business and try not to go too much larger than this, or you'll end up spending an unnecessary amount on your insurance.
You can also reduce the cost of your premiums by increasing the excess. This is the amount you pay when it comes to making a claim. Usually, the higher your excess, then the lower your premium. However, be careful not to set your excess too high, as it may become unaffordable to make a claim when you really need to.
You can also cut costs by increasing security. If you install an extra alarm or immobiliser, or even park it in a locked garage overnight, then you can prove to your insurance provider that your van is at lower risk of theft. You should be rewarded with cheaper van insurance.
Finally, the easiest way to get the cheapest van insurance is to compare providers and prices. You can use our price comparison tool to get a list of all the insurers and their policies available. Make sure you know exactly what you need, so you can get the right level of cover at the best price.