Applying for van insurance may seem like a daunting task as there are so many factors that you have to take into account and it can be hard to know which deal is best for you. However, the following Consumer Adviser guide is designed to make your van insurance decisions a little easier by demystifying the different types of van insurance and highlighting things to look out for.
Levels of Cover
Like car insurance, van insurance can be broken down into three levels of protection: third party only; third party, fire and theft; comprehensive.
Third party insurance is the minimum level of cover that individuals can take out and it covers only damage to third-party vehicles and property. This level of cover will not pay out for any damages that your van may receive.
Third party, fire and theft offers more protection than third party only as it will also pay out should your van be stolen or damaged by fire. In addition, this type of insurance will also pay out if your van is damaged as the result of attempted theft.
As its name suggests, comprehensive van insurance is the highest level of insurance that an individual can purchase. This type of insurance will offer all the cover provided by third party, fire and theft insurance and will also pay for the cost of repairs to your vehicle.
Types of Van Insurance
In addition to thinking about how much cover you need, you will also need to think about how you use your van and which type of policy best fits your usage. Indeed, picking the wrong type of van insurance may invalidate your policy should something untoward happen.
If you do not use your van for work, you should opt for a social only policy. If you use your van for carrying your own goods or work equipment, a commercial or business van insurance policy will be best for you. There are a number of commercial van insurance policies which offer varying levels of cover depending on the value of your van and the value of the content it holds.
If you use your van to transport goods which are not your own, you will need to take out haulage or courier van insurance. While there is some discussion regarding the distinction of these two policies, it is commonly agreed that couriers make multiple drop-offs.
Haulage and Courier Van Insurance
If your job involves dropping off goods to customers, then it is important that you take out haulage or courier van insurance in order to financially protect the goods that you are transporting. While there is some debate regarding the distinction between haulage and courier van insurance, the general consensus is that those who do multiple drop-offs will need courier van insurance.
Fleet Van Insurance
If you have four to five vans (the exact number varies from provider to provider) you will need to take out a separate van policy for each vehicle. However, if you have more vans it may be possible to take out fleet insurance. Not only is fleet insurance more convenient to manage, but it can sometimes secure you with a discount as you are buying in bulk from the same provider.