Van insurance isn’t as simple as going onto your personal favourite price comparison site and choosing the cheapest deal – there are plenty of things to consider, whether you’re a sole trader or a manager of a huge fleet.
To help you understand exactly what you need, our experts at Motus have put together a list of the key points you need to know when negotiating the best deal for you.
What type of insurance do you need?
There are three core levels of van insurance, and you may not necessarily need the best – but the cheapest may not give you the protection you need.
Third-party van insurance
You need third-party cover as a legal requirement to drive, but will only pay out on damage caused to other vehicles; any damage to your own will need to be covered out of your own pocket. It’s cheap and cheerful, but might not be after an accident.
Third-party, fire and theft van insurance
This is the same as above, but with the added benefit of being able to make a claim in cases of fire, or if someone steals it. You’ll still have to pay for anything else.
Comprehensive van insurance
As generally the most expensive option, comprehensive van insurance is still nonetheless the most popular choice for van drivers, not least because most carry their entire career inside one. Whatever happens, you’re covered (subject to excess payments – which we’ll get onto soon). Still, be careful: not all policies work in the same way, so read the small print closely.
What’s your insurance policy’s excess?
Here’s where you have to make a certain personal gamble. You’ll find that most policies carry a “compulsory excess”, which you’ll need to pay a minimum charge on a claim before the insurance company pays out on the rest. If you opt for a higher personal cost, you’ll generally be rewarded with much better monthly premiums. To get the best balance of what you’re willing to pay, you should consider how much your van (and what’s inside) is worth, and think about how much you stand to lose.
Modifications
Depending on your business, you’ll likely have modifications made to your van in one shape or form. You need to make sure these are all accounted for – and that you speak to your insurer before making any changes in future. Chances are that some organisations may want you to use a preferred provider for any upgrades to keep it as part of the policy, while other mods will have no effect on your current agreement.
Optional extras
There are a certain number of things you might get with a policy, so consider if you need the following:
Goods in transit
Whether you’re a delivery driver or a workman with expensive tools, it pays to have protection for things inside your van. Even comprehensive cover may omit this, so if you carry valuables, make sure you look into the maximum value of transit cover you’re entitled to.
Replacement van
If your van gets into trouble, will you need a replacement while yours gets fixed? With fleets, there tends to be a back-up or two on the premises that might be used instead, so this cover may not be needed. However, if you’re a sole trader, it’s something that really ought to be secured.
Breakdown/recovery
Many policies will allow you to enjoy a certain level of breakdown cover. If your livelihood is on the line without it, then chances are you’ll get it. However, fleet managers tend to get an overall policy with a dedicated provider; meanwhile, many banks, such as Nationwide, offer breakdown recovery with paid-for bank accounts.
Getting the best deal
Finally, there are a couple of tricks worth remembering for getting the best deal on your van insurance:
- Be honest: Although it sounds silly, people can often embellish the truth. However, if you end up making a claim, these tiny inconsistencies could make a claim null and void.
- Scour the market: Price comparison engines are great, but often calling an insurance firm directly will get you a better price, especially if you can compare with other providers. Others, such as Direct Line, pride themselves on not listing themselves with comparison sites and can offer really good deals.
- The more, the merrier: If you have more than one vehicle, consider getting them all on one policy – it could end up being a heck of a lot cheaper to pledge allegiance to one provider for all your vehicles.
