Van Insurance

Is van insurance dramatically different from car insurance? In many ways no insofar as the primary types of cover are concerned, e.g. Third Party, Third Party fire and Theft and Fully Comprehensive.

But because most vans are designed to primarily carry goods and not people alone, save for the driver and possibly a passenger, the cover is applied differently with the Insurance companies worrying equally about the human factor and the ‘goods in transit’. They particularly want to know where the goods will be left overnight. And what might appear surprising the minimum age of the driver as well as the driver’s capabilities.

As with cars the younger you are the higher the premium you will have to pay. It seems very unfair but the statistics do show that ‘under 25’ van drivers are a much higher risk than those over 25 and here the insurance companies have evidence that is beyond doubt.

Where the van is not part of a fleet, i.e. a group with a minimum count of 3 vehicles, the rates will vary dependent on whether the van is used for single stop deliveries or multi-stop. Clarification on the vehicles security system is integral and some Insurance companies may even insist on armour plating, yes really!

If it’s being used by a building contractor for example, where will his/her work tools kept at night and will the place where they are stored be secure and insured?

Another problem with vans is whether they are multiple or individual locking? Are they being used as farm vehicles or off road? The permutations can be endless, so whilst we all think it is being used for business just as where it will be parked overnight i.e. in a garage, on or off road, the nature of the business will generate substantial differences on what applicable rate of insurance cover will be required.

There are schemes where No Claims Bonuses are transferable from private cars and vice versa. So the more information that can be supplied prior to purchasing cover, the better, and by definition the greater the opportunity to establish economic rates.

The Insurance Broker you chose to use should be able to discuss all the various permutations with you, subject to the facilities they have available from Insurance companies. Please remember no one broker will be able to cover the whole market although they may infer that they can.

Even with the Internet being to some all singing and dancing an Insurance Broker who is not tied to one or two Insurance companies alone on their ‘panel’ but has access to substantially more will clearly become apparent.

That might sound obvious, but the deal you get will improve the greater the competition available it is perfect street level economics.

Certainly there is a market off screen where Underwriters can be dramatically more competitive on pricing and cover and where they specialise more so than others.

In truth, only a good Insurance Broker will know where to access the best rates, making the Internet in some instance singularly redundant. As a service facility it is brilliant but as a user you will know unless you ask eth right questions it gets you nowhere.

A good broker is reliant on repeat business and it is of no value to give poor service as the Client will go elsewhere, such is the level of competition in today’s market place.

So given the van may be your livelihood, and with it off the road you could be subject to serious financial loss. It’s always best to check that bit further or use your Broker to save you the time and effort and most importantly money to get you the right deal.

Finally remember that the premium you pay for cover can be affected by increasing the ‘excess’ you pay before the insurance company is committed to pay.

What you must be mindful of is that there are two types of excess. The ‘compulsory’ one and the ‘voluntary’ one. The compulsory one is set in stone; it is the voluntary one that can vary. Added together they take the onus off the Insurance company to a substantial degree and place it firmly back onto the paying Client.

So please be careful assuming what you think you might be saving when you pay for your insurance cover. Internet sites have been very bad at not making this integral point clear and unfortunately many more.