Commercial van insurance covers your van if you use it in relation to work or your business. Depending on the type of policy you choose, it compensates other people for damage you’ve caused, as well as damage to your own vehicle and tools.
Policy cover varies across insurers, so it’s crucial to review all of the information provided in order to avoid any costly misunderstandings later on down the line. To help you make an informed choice about the cover you need, here’s what to consider when it comes to commercial van insurance...
Just like other types of van insurance, there are three levels to choose from:
Generally speaking, commercial van cover doesn’t automatically cover any tools, equipment or parcels you carry or transport in your van. Some comprehensive policies might cover your personal possessions but only up to a certain value.
To protect the items that you carry, you can opt for additional cover known as goods in transit insurance. There are different categories to choose from to ensure your specific needs are met:
Make sure when choosing goods in transit insurance you chose the same category of use for your van policy.
To give you and your van even greater all-round protection, you’ll usually be able to add other features to your policy – popular choices often include:
An exclusion is an event that isn’t covered by your insurance – almost all policies come with a set of exclusions, but they can vary according to the insurer so always check the wording on your documents. That said, exclusions tend to be fairly similar and you’re highly unlikely to be covered for:
Policies are designed to meet your specific needs, so cost can vary considerably. Some of the factors insurers will consider include:
It will depend on how you use the van.
If you use your van for work, then yes – you’ll almost certainly need to take out a new van insurance policy that covers commercial usage, or upgrade your existing policy to give you the level of cover required.
However, if you don’t use the van for business, then you need to be aware that unlike car policies, van policies don’t usually offer a ‘social, domestic and commuting’ option. This means that if you use your van to commute to work (even if it’s to the same office every day) you’ll need to choose the correct use on your van insurance policy.
On the whole, insuring a van for private use is only suitable if you’re using your van for purely domestic reasons – for instance doing the school run, the weekly food shop, visiting friends and family or using your van for holidays.
Whatever the type of policy, it’s essential to check what your insurer’s definition of private use and commercial use is. Driving with the wrong sort of insurance could end up invalidating your entire policy which means you won’t get any compensation if you need to claim and could lead to points on your licence, or worse.
You can, and some insurers will offer a multi-van policy so you can insure all your vans on a single plan – making admin simpler because you’ll only have one renewal date.
If a multi-van policy isn’t available, you’ll be able to insure each van on its own. The good news is that either way, most insurers will give you a discount for each additional vehicle you insure with them.
Cost will always be an important part of any decision you make about van insurance but it’s imperative to think about what’s covered by the policy.
So, while cheaper policies might catch your eye, take the time to check they include what you need. You may be surprised to discover that some pricier looking packages actually work out cheaper by the time you’ve added ‘optional’ features to a third party only policy (for example).
Of course, there are ways to lower the cost of cover, such as:
One of the best ways to find the protection you need at a price that suits your budget is to start a search for commercial van cover right here at Asda Money.
Call the team on0330 022 7740