If you own a van, it’s crucial to have the right type of insurance coverage to protect both your vehicle and your livelihood.
The type of van insurance you need will depend on how you use your van – whether it’s for personal or business purposes, or a combination of both. Here’s a breakdown of the main types of van insurance:
Social Only Van Insurance
If you only use your van for social, domestic, and pleasure purposes – like shopping, visiting friends, or going on holiday – then a social only policy may be sufficient. This type of insurance is similar to standard car insurance and does not cover any business use of the van.
Private Van Insurance
Private van insurance is a step up from social only cover. It’s designed for people who use their van primarily for personal use but may also use it for occasional business purposes, such as commuting to a single place of work. However, there are still limitations on the amount and type of business use allowed.
Commercial Van Insurance
If you use your van for any kind of business or work-related purposes, you’ll need commercial van insurance. This could include using your van to commute to different workplaces, transport tools or equipment, make deliveries, or carry out work for hire or reward. There are different levels of commercial van insurance to choose from:
- Carriage of own goods: This covers you for carrying your own tools, equipment and materials in your van. It’s the most common type of cover for tradespeople like plumbers, electricians and builders who use their van to get to and from jobs.
- Carriage of goods for hire or reward: You’ll need this higher level of cover if you transport other people’s goods or merchandise in exchange for payment, such as operating a delivery service or courier business.
- Haulage: This is necessary if your business involves carrying large quantities of commercial goods over long distances, such as removals or freight transport.
In addition to these core types of cover, there are also optional extras you can add to your policy for enhanced protection. These might include:
- Breakdown cover to provide roadside assistance if your van breaks down
- Legal expenses cover to help with legal fees if you need to settle a dispute
- Goods in transit cover to protect any items you’re carrying in case of theft or damage
- Personal belongings cover for any personal items you keep in the van
- Personal accident cover to provide compensation if you’re injured while in or getting out of the van
If you’re using your van for business, it’s also important to look for a policy that includes the right liability insurance. For example, Zego’s business van insurance includes £5 million public liability cover as standard to protect you if your work activities cause injury or damage to a third party. You can also add £10 million employers’ liability cover if you have any employees.
Choosing the right van insurance ultimately comes down to getting the best balance of cover and price for your needs. Always compare quotes from multiple providers and carefully check what’s included in the policy wording before you buy.
What is the cheapest type of van insurance?
Social only van insurance is usually the cheapest type of cover as it’s designed for personal use only and doesn’t include any business use. However, it’s important to make sure you have the right level of cover for your needs – if you use your van for any work purposes, you must have commercial van insurance or your policy could be invalid.
Is van insurance more expensive than car insurance?
Van insurance is often more expensive than car insurance because vans tend to have larger engines, cost more to repair, and are at higher risk of being involved in accidents. Vans used for business also typically cover more miles and carry valuable cargo which increases the potential claim costs for insurers.
What happens if I don’t have the right van insurance?
If you don’t have the correct type of van insurance for your usage, your policy may not be valid and any claims could be rejected. Driving without valid insurance is also illegal and could result in penalty points, fines, or even losing your licence. Make sure you always have the right level of cover in place.
Do I need special insurance for a van rental or borrowed van?
Yes, if you’re renting or borrowing a van, you must make sure you have the correct short-term insurance in place for the duration of use. Your existing car or van policy will not automatically cover you to drive other vehicles, even if you have a ‘driving other cars’ clause. Check with the rental company or van owner what insurance you need.
Can I transfer my no claims bonus from a car to a van?
Some insurance providers will allow you to transfer a no claims bonus from a car to a van policy, as long as you’re not using the bonus on another vehicle at the same time. This can help reduce the cost of your van insurance if you have several years of claim-free driving on your car. Check with individual insurers to see if they allow this.
Written By Tom Mark at Digital Media
