Commercial Van Insurance: Do You Need It?

Commercial Van Insurance: Do You Need It?

Commercial Van Insurance: Do You Need It?

As a proud business owner of a van, you know how much you have invested in your asset so far. Whether you are using your van for work or for personal reasons, it is important to take care of it, especially when it comes to unpredictable situations that none of us can control.

For example, when you or your employees are driving the van, you are facing many risks, including vandalism and fire. Luckily, there are options to insure your van before you take it on the road. Here is everything you need to know about commercial van insurance.

What is Commercial Van Insurance?

Commercial van insurance is also known as business or company van insurance. This policy covers your work vans and your personal possessions, like tools. Also, commercial van insurance can cover travel to multiple workplaces and the transport of goods and materials.

Most cargo van insurers cover vans up to 3.5 tonnes, while some cover up to 7.5 tonnes. Other types of vans that van insurance policies cover include:

  • Pick-ups
  • Light vans
  • Double or single cab vans
  • Tippers

How Does Commercial Van Insurance Work?

Van insurance works just like commercial auto insurance. The insurance policy covers your van in case of theft, fire, vandalism, and road accidents.

One of the key benefits of commercial van insurance is that if you pay extra to add more coverage to your insurance policy, you can get things like courtesy van hire and breakdown assistance. With the right add-ons to your van insurance, you will cover your van when you are driving it abroad, or even if you lose your keys!

The additions to your commercial van insurance policy can help you minimize the impact of accidents on your business.

What Does Commercial Van Insurance Cover?

We already mentioned a few situations in which commercial van insurance would be useful. Usually, van insurance covers:

  • Accidental damage of your van or the vehicles of third parties in the case of an accident

  • Some or all of the legal fees in case you make a claim or a third party makes a claim made against you

  • For example, if a personal accident wasn’t your fault, commercial van insurance covers bodily injuries you can’t recover the cost from a third party

  • Medical expenses for injuries to yourself, your passengers, or third parties

What Extras Can You Get With Commercial Van Insurance?

For business owners who pay extra for their commercial van insurance, there are a variety of additional coverages they can get.

While these aren’t useful for all van owners, there is something that fits your specific needs:

  • Breakdown cover: gets your van repaired and helps you continue if your van breaks down
  • Courtesy vehicle: gives you a replacement vehicle while yours is repaired
  • Legal cover: covers any legal costs that arise after an incident that you didn’t cause
  • Public liability cover: covers commercial vans for costs if a third party gets injured because of you
  • Employers’ liability cover: covers you against claims of negligence by your employees
  • Wrong fuel cover: covers the repair costs if you accidentally top your tank with the wrong fuel
  • Personal belonging cover: covers your possessions if someone steals or damages them while they are in your van
  • Additional drivers: adds extra drivers to your existing commercial van insurance policy

Classic blue vans parked in the street.

Types of Commercial Van Insurance

Depending on the type of business you own, you can use your vans in many different ways. That said, there are several different types of commercial van insurance available for these use cases.

Social and Domestic Cover

This type of van insurance provides basic cover for your van as long as you don’t use it for commercial purposes. Some insurance companies also offer coverage for belongings inside the van, but not if they’re left inside overnight, so make sure you pay attention to the details of your policy.

Carriage of Own Goods

This is the go-to cover when it comes to cargo van insurance. Carriage of own goods cover protects your goods cargo from transit risks. However, it would be best to tell your insurer what you’re transporting beforehand because this policy only covers the goods they agreed to insure.

Haulage and Courier Cover

Haulage and courier cover is specifically designed for cargo vans that carry belongings to other people and businesses. This type of cargo van insurance reflects the length of time a van is on the road, but it doesn’t protect the goods themselves.

What Levels of Commercial Van Insurance Are Available?

There are three levels of commercial van insurance you can choose from:

  • Fully comprehensive: covers you, your van, your passengers, property, and third parties involved in an accident. Fully comprehensive coverage also protects your van against theft and vandalism.
  • Third-party, fire, and theft: covers the costs of damages to the third party you caused, and protects your van against theft and fire. It doesn’t pay for other damages to your van.
  • Third-party only: covers your liability for injuries to other people and damages to their property.

How Much Does Commercial Van Insurance Cost?

The price of the van insurance depends on several factors:

  • The value, age, and engine size of your van (expensive vans with more powerful engines cost more to cover)
  • Your age, occupation, and address (you may pay more for your insurance policy if you are under 21 or you live in an area with a high crime rate)
  • Your driving history (if you have a clean record, your premiums will be lower)

How Can I Get Cheap Van Insurance?

When asking for the best van insurance quotes, there are several things you should have in mind that could reduce the amount you pay:

  • Paying upfront for your insurance is always cheaper than paying monthly
  • Avoiding any modifications to your van can save you money on insurance
  • Increasing your excess usually lowers your premiums, but make sure you could still afford the excess in case you had to make a claim
  • Improving security such as trackers and alarms is also a good way to lower the risk of someone stealing your van, but also to cut your premium

Do I Need Commercial Van Insurance?

Even if you’re only driving your van occasionally, commercial van insurance is something every business owner should consider for precaution reasons. Business owners who have light commercial vans up to 3.5 tonnes can opt for commercial van insurance, while those that are heavier will probably need truck insurance.

Are you a business owner? If you own a business, you probably want to know more about other ways to protect your assets. Learn more about business owners policy and what types of coverage we offer with it.