Last updated: 22/10/2020
Paying your van insurance premiums monthly
Driving a van isn't cheap. Taxes, fuel and insurance costs all add up. With so many other costs to cover in our lives, from rent and energy to food and leisure, paying for your annual van insurance in one lump sum can be unaffordable for many of us. Luckily, you can spread the cost of your van insurance over the year by paying for your premium in monthly instalments. This guide will run you through the basics of monthly van insurance premiums and how they could save you money.
In This Guide:
- Why should I get monthly van insurance?
- Why shouldn't I get monthly van insurance?
- How can I save money with monthly van insurance?
Why should I get monthly van insurance?
Taking out a monthly van insurance policy can help you to manage your finances. You will know exactly how much you will be paying each month and when, and you won't have the worry or burden of having to pay for a year's worth of insurance in one go.
When taking out a monthly van insurance policy, you can agree beforehand on which date you would like to make payments, making your life that bit easier. For example, if your cash flow is tight, then it would be sensible to make your payments just after payday to make sure you don't come up short and miss any payments.
Also, you don't always have to commit to a year. Many insurers now offer temporary van insurance, with flexible dates ranging from anywhere between a few days to a few months.
Why shouldn't I get monthly van insurance?
Paying for your van insurance month by month is usually more expensive than paying for it upfront. By paying for it all in one go, you won't be charged any interest, whereas you will if you pay in monthly instalments. You may even have to pay a deposit to get a monthly van insurance deal, depending on which insurance provider you choose.
How can I save money with monthly van insurance?
Other than shopping around and finding the cheapest van insurance quote, there are several ways you can make your monthly van insurance cheaper and save money.
Choose the right type of policy
The amount you pay on your van insurance depends on what level of cover you go for. There are three main levels of cover, but the lowest level of cover is strangely not always the cheapest. That makes it even more important to compare van insurance prices when taking out a policy.
The most basic level of cover is third party only. This covers the cost of any damage caused to another vehicle, person or property in the event of an accident. Third party, fire and theft cover is the next level up, and protects you against the cost of any damage to your van caused by fire or theft. The highest level of cover is comprehensive, which covers everything the other two levels do, but also any damage caused to your own van in the event of an accident, regardless of whether it was your fault or not.
Choose a smaller van
The size, power and value of your van will also affect the cost of your cover. Generally, the bigger and more powerful your van then the more expensive your insurance will be. All van models are categorised into van insurance groups. There are 20 in total, and the lower the van insurance group, the cheaper your premium will be.
Increase voluntary excess
You can also reduce the cost of your insurance by choosing to increase your voluntary excess. This is the amount you will pay when it comes to making a claim. The higher your excess, then the lower your premium should be. However, don't set it too high so that it becomes unaffordable to make a claim when you need to.
By increasing the security of your van, you will also be rewarded with cheaper van insurance. If you can show to your insurer that you park your van in a locked garage overnight, or if you install an immobiliser or extra alarm, you can get cheaper van insurance.
But the quickest and easiest way to lower your premium is to shop around and compare van insurance prices. Use our van insurance price comparison tool to find the best monthly van insurance deals with the lowest interest rates. You should always do a price comparison when it comes to renewing your van insurance, even if you're happy with your current provider, as it's rare that you will get rewarded for loyalty and likely that you can find better deals elsewhere.