Table of Contents
- What is van insurance?
- What is business van insurance?
- What are the different types of commercial van insurance?
- What does commercial van insurance cover?
- Do I need private or commercial van insurance?
- Goods in transit insurance
- How much does commercial van insurance cost?
- What isn’t included in commercial van insurance?
As a small business owner, you know that your van does more than just get you from A to B.
Your van is what keeps your business moving forward, from one happy customer to the next. It’s a canvas for advertising your services; it saves you lugging your tools about; and it’s your ride home after a long day. Sometimes, it’s also where you eat your lunch.
In short, your van is your livelihood, and you’d be in deep trouble if something were to happen to it.
That’s why business van insurance is so important. In the event of an accident, fire or theft, commercial van insurance can kick in to cover the cost of getting you back on the road.
If you’re already convinced, we can help you compare van insurance to find the best fit for your business. You could have a quote in less than five minutes – simply put in your registration number and answer a couple of questions about your van and what you use it for.
Otherwise, read on to learn all about van insurance and commercial van insurance, from what it covers to how much it costs.
What is van insurance?
If you’re driving any vehicle on the road in the UK, you are legally required to have motor insurance.
Van insurance is a specific motor insurance policy designed with vans in mind.
If you’re just using your van for personal use, then private van insurance works a lot like private car insurance, covering you for things like injuries or damage to other people, accident recovery and theft of personal belongings.
But if you use a van for business purposes, or if you use your van to commute to work, then commercial van insurance is essential for protecting not only your vehicle but also your livelihood.
What is business van insurance?
Commercial van insurance and business van insurance are interchangeable terms. And if you use your van for any work related purpose – like driving to and from jobs – you are legally required to have it.
This is the case even if you only have a part-time side hustle and you also use your van for personal things, like driving to the shops or taking the kids to and from school. (In this case, commercial van insurance will cover you for your private use as well as your business activities.)
Commercial van insurance is also essential for regular car-boot traders who might struggle to argue that their buying and selling is purely a hobby or social activity.
If something goes wrong with your van, you’ll be grateful for the cover. That’s because commercial van insurance can offer protection which goes beyond just the basics – including things like access to a courtesy van in the event that your own vehicle is damaged, written off or stolen.
» MORE: Compare business insurance
What are the different types of commercial van insurance?
There are a few different types of commercial van insurance. The right one for you will depend on your business and what you use your van for.
- Carriage of own goods insurance is for you if you use your van to transport tools or goods related to your business or if you just use your van to get to and from work.
- Carriage of goods for hire or reward is for you if you transport goods for payment – as a delivery driver or a courier, say.
- Haulage insurance is for you if you regularly use your van to drive a long way to make a single delivery.
What does commercial van insurance cover?
What’s covered by your commercial van insurance is likely to depend on the specifics of your policy.
Legally speaking, third- party cover is the most basic motor insurance you can have. This covers damage caused to other people and their property but won’t compensate you if you’re injured or if your van is damaged.
Third party, fire and theft coverage goes a little further. These policies offer financial protection if you injure someone or cause damage to their property – but in this case you’re also covered if your van is stolen or damaged by fire.
Alternatively, you may also decide to opt for more comprehensive van insurance cover which, as well as including the above protections, goes the extra mile.
In this case, you might be able to customise your policy, and not every van insurance provider will offer the exact same cover. But generally speaking, more comprehensive commercial van insurance could include:
- accidental damage cover
- cover for fitted audio equipment (like your van’s stereo system)
- windscreen repair and replacement
- tools and equipment cover
- personal belongings cover
- personal accident cover
- medical expenses
- accident recovery cover
- cover if your keys are stolen
- access to a courtesy van if yours is lost or damaged
- cover if you use the wrong fuel
- hotel expenses if you break down away from home
- legal expenses to cover the cost of bringing a claim for uninsured losses
Do I need private or commercial van insurance?
Anyone who drives a vehicle on the road is legally obliged to have motor insurance against the risk of causing damage to another vehicle or injury to another driver.
Anyone caught without insurance runs the risk of court action, a potentially unlimited fine and a ban from the road.
Therefore, if you’re driving a vehicle, you need insurance. If you use your van only for social or private reasons, then private van insurance might suffice. This would cover things like taking the vehicle on holiday, doing the shopping, and getting you to and from hobbies.
However, if you use your van for anything to do with your business, you’ll need commercial van insurance. The same applies even if you drive your van to work but do not use it for work purposes, since there is no specific social, domestic, leisure and commuting policy for vans.
» MORE: Compare private car insurance
Goods in transit insurance
If you carry anything precious, dangerous or hazardous in your van, or if you work as a courier, you may also need ‘goods in transit’ cover.
While not a legal requirement, this specific type of business insurance can protect you if the goods you are carrying are damaged, lost or stolen in transit. If any of those eventualities should occur, goods in transit cover will also cover the legal fees and compensation costs of a claim made against you.
How much does commercial van insurance cost?
The cost of your commercial van insurance quote is likely to depend on the specifics of your business.
Generally speaking, there are a few factors which can affect the cost of commercial van insurance. These include:
- your industry
- what you use your van for
- where you store your van overnight
- how old you are
- how much driving history you have
You may be able to lower the cost of your commercial van insurance by investing in security features for your van – things like alarms, immobilisers and trackers.
A dashcam may also lower the cost of your van insurance, as well as providing video evidence (and peace of mind) if ever you find yourself in a dispute.
What isn’t included in commercial van insurance?
Whenever you take out any kind of insurance, it’s important to make sure you check the conditions and omissions of your specific policy.
And before you hit the road with your newly insured van, it’s a good idea to double check what is and isn’t covered by your insurer.
For example, you probably won’t be covered if your van is stolen because you left the keys in the van or failed to lock it properly.
Wear and tear is generally excluded from commercial van insurance – and the same may go for mechanical or electrical breakdowns.
And, obviously, if your van is being driven by someone who isn’t insured on your policy or if it’s being used for a purpose your policy doesn’t cover, then you shouldn’t expect your insurer to pay out if something goes wrong.
» MORE: Business travel insurance explained
Image source: Getty Images
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