11th June 2020
Owning and running a van can be a big expense and, more often than not, insurance is the biggest cost involved. Learning how you can reduce the price of your van insurance in ways that won’t affect your coverage is the best way to save money on running your van, and it’s much easier than it might seem at first.
It’s arguably even more important to know how to save money on insurance as a van driver than as a car driver, as van insurance is generally more expensive than car insurance.
You need van insurance in order to be able to legally drive on the roads, so it’s not something you can avoid entirely but, by following these 10 tips to cut the cost, you can avoid having to pay over the odds.
In insurance terms, a voluntary excess is an amount that the policyholder is willing to pay in the event of a claim. Most policies will also have a separate compulsory excess that’s set by the insurer but unlike voluntary excess, this cannot be reduced.
Voluntary excess can usually be as little or as much as you’d like, but the level you choose will result in you paying more money out of your own pocket if you make a claim that’s your fault, so consider your options carefully.
The rule of thumb is that by setting a higher excess on your van insurance policy, you’ll pay less for your insurance premium. However, rules are made to be broken and you might find that a higher excess can actually result in a more expensive premium. This is because insurers can make assumptions about your confidence as a driver based on what you’re willing to pay.
There’s no right advice here, other than to play around with your van insurance voluntary excess and see what reduces the cost and what increases it.
Another insurance term – no claims discount is the cost-reducing benefit that insurers offer van drivers who prove their driving safety by avoiding incidents, and therefore claims. The longer you can go without claiming on your insurance, the more your no claims discount will build. This might not always mean a reduced overall premium, however, as premiums can increase year on year due to inflation and other market changes.
Avoiding claims wherever possible, firstly by driving safely and also by considering whether you need to make a claim on your insurance for minor damage, will help you to build this discount over time.
The security of your van is another factor involved in the price you’ll be quoted for van insurance. As theft is one of the big risks involved in owning a vehicle, the more you can do to deter thieves, the better.
Taking your van security seriously by finding secure parking, installing security measures like a wheel lock, and even having your registration number etched onto the windows can all play a part in convincing insurers that you’re at lower risk of suffering from van theft. This should result in a lower premium, but what security measures are considered effective varies from insurer to insurer.
Since vans are generally considered as trade vehicles primarily, some specialist van insurers offer discounts to drivers who are a member of a relevant trade organisation. Again, this is limited to certain insurers and is not something you should expect from everyone, but it’s worth keeping an eye out for.
Joining a trade association will often come with a cost in itself, but the reduction you could see in your van insurance premium will help to offset this and membership will usually come with other benefits.
One of the biggest factors used to determine how much your van insurance costs is the amount of mileage you cover on the roads. It stands to reason that the longer you’re driving on the road, the more likely you are to be in an incident that results in a claim, so minimising your mileage to just the essentials is a great cost-cutting tip.
You’ll be asked what your average mileage is when you fill out a van insurance question set, but make sure you’re being honest with your answer as any misrepresentations in your van usage can completely invalidate your insurance if you ever have to claim.
Van insurance, just like car insurance, can come with additional extras that boost your coverage. For van drivers, the benefits of optional insurance extras can include goods in transit cover, breakdown cover, and cover for trailers.
However, every optional extra you choose to add to your van insurance will come at a cost and they can quickly add up, leaving you with a hefty premium to match your extensive coverage. To stop unnecessary inflation of your van insurance costs, make sure you only choose to add those that you actually need.
Gone are the days of having to trawl through tens of different insurers seeking out the best price, filling out what’s essentially the same set of questions over and over again. Van insurance comparison tools can help you to save hours of your time, and you’ll be able to find the best price possible too.
By comparing van insurance with Asda Money, you’ll see quotes from lots of different insurance providers in one place after filling out just one set of simple questions. You’ll be able to see how costs and coverage compare between insurers.
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What van you drive has a big impact on how much your van insurance costs, with the general rule being that a smaller engine in your van means lower premiums. The physical size of your van, its make, and its model are also often considered in calculating your van insurance price.
While it’s not suggested that you go out and buy a new van just to get cheaper insurance, it is useful to know that the decision you make when you come to buy a new one will affect how much you’re paying monthly or yearly for the duration of your ownership.
Next time you’re on the market, shop around to find a van that’s notably cheap to insure, and make sure that you’re getting only the size and power of vehicle that you need, nothing more.
If you drive your van for business purposes and your business has a logo, having a graphic advertisement for your business on the side of your van is a good idea. This can not only make your van less likely to be stolen because it’s more easily identifiable, but it might also help to bring your insurance premium down.
In the same way that insurers like to know that your van is parked securely and equipped with additional security measures, having an easily noticeable business graphic on your van could mean insurers will offer extra savings.
The final step in securing cheap van insurance is to consider what kind of coverage you need and avoiding overspending on coverage you don’t. You can choose van insurance that covers third party only; third party, fire, and theft; or a comprehensive policy. The lower the coverage you choose, the cheaper your insurance will be. However, think carefully about what you need coverage for, as you won’t be able to make a claim for anything your policy doesn’t include
Insurance prices also vary depending on what you use your van for. If it’s strictly for recreational purposes, you’ll find your insurance is cheaper, while if it’s for commuting or business use, you’ll pay more.
The Asda Van Insurance comparison service allows you to compare quotes from leading insurers and get covered in minutes.
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