By having a van you can earn a living; although you can lose your investment if you are not adequately covered by the right kind of policy if you ever need to make a claim. It could leave you unable to replace stolen tools and equipment or without a van at all. Since there are so many ways a van can be used for commercial gain, van insurance costs differ considerably according to the size, model, and intended use.
Different but obvious factors contribute to increasing the cost of the insurance such as overseas travel and use, the types of goods transported, inclusive legal protection and of course, the make, age and model of the van. There are many other less obvious factors.
Some specialized factors significantly increase the insurance cost. These include,
- Young Drivers: Drivers under 25 are considered high-risk. The insurance cost is very high for all young drivers and it is next to impossible to find affordable van insurance for young and inexperienced drivers.
- Accident Prone Drivers: Drivers with past convictions for any driving offenses are high-risk and considered more likely to be involved in traffic violations and accidents. Insurance premiums increase significantly. If you are willing to pay, most of the insurance providers have specialized policies for high-risk drivers but each comes with strict terms and conditions reflecting the higher risk.
Different Types of Van Insurance
The experience of the driver matters a lot, but the van insurance cost will also change with a change in the type of insurance you need.
Short Term Insurance
If you have temporarily rented a van, you can opt for short term or temporary insurance. Short term insurance is also beneficial for seasonal use of business vans like ice cream van and will save you paying insurance of the months when your van is not in use.
Business Van Owners
General or private van insurance does not cover vans used for business purposes. Business vans can be used for various purposes like transporting good of others in return for monetary rewards, transporting your business or for use as a courier service and many, many other purposes. You may need specialized van insurance for your business type.
There are other kinds of business vans as well like the pick and drop vans and vans used by vendors for selling goods. There are separate specialized insurance policies for each of them.
To get the best deals and the security of knowing you are covered, you have to be clear and honest when taking out a van insurance policy, especially about what you intend to use your van for. If this looks likely to change before your next renewal, you must bring your policy up to date and that will mean paying extra administration costs.
It’s worth thinking hard about what is ahead to make sure you are covered properly from the start. Any use you have not declared and is therefore not included in your policy, will invalidate all your insurance cover no matter what you are claiming for and leave you open to prosecution for driving with no insurance.
Interesting related article: “How to shop for the cheapest car insurance policy.”