Factors influencing your van insurance rating
Van insurance quotes vary dramatically from one insurance company to the next, even though they all use similar rating factors – simply because each company gives a different weight to each rating. One may be more concerned with van security, for example, while the next may be influenced more by the ages of drivers.
Here's a summary of the key factors influencing van insurance premiums, and tips on reducing your premium.
Van make and model
The type of van you run will obviously have an impact on your insurance: those with larger engines and higher values generally command higher premiums. Insurance for smaller, lighter vans is cheaper than for a larger transit van, which is deemed to be more difficult to control and therefore more prone to accidents.
Depending on the ways in which you use your van, you may need a specialist insurance provider. If the van is owned by the company and used only for business you will probably need specialist commercial van insurance, and then same goes for courier companies or businesses that transport certain goods such as hazardous materials.
If you use your van outside of work as well, you need to tell your provider and make sure your policy covers you for both work and pleasure. If on the other hand your van is primarily for home use, and only used for business from time to time, you may be able to extend your standard policy to include 'occasional business use'.
Alternatively, for a fleet of five or more vans you could look into a fleet policy, which may be better value than separate policies for each individual van.
Anyone being included on the van insurance can influence the premium. Drivers aged 25 or under, or those who have been refused insurance in the past for some reason, will make it more difficult to secure a cheap premium. An 'Any driver' policy generally costs a lot more.
If you choose to take a voluntary excess on top of the standard compulsory excess, you will reduce the premium – because insurers tend to think those who agree to a higher excess will be more careful with their vehicles.
Van location, storage and security
Store your van in a locked garage or secure compound overnight to help attract a cheaper premium. City business locations are considered higher risk than rural locations because of the heavier traffic and greater likelihood of accidents, and the greater risk of vehicle thefts and break-ins. And if you boost your van's security by fitting approved devices such as an alarm or tracking system this may also help reduce your premium because they deter and prevent thieves.
As with any motor insurance, you will build up a no-claims bonus for each year you don't make a claim on your policy, generally giving you a discount on your renewal.
Since each company uses rating factors in different ways, get a wide range of quotes for your van insurance. That way you will find the company that can offer you the best deal for your specific set of circumstances and requirements.