Securing cheap van insurance is a crucial part of keeping down the costs of running your business, but it's not the easiest thing to do.
There are hundreds of insurance providers and thousands of policy options out there, and comparing them is far from simple. By adopting a strategic approach to comparing your van insurance quotes, you can find a policy that offers the right level of protection needed for your business and your budget.
This guide will look at how to effectively compare van insurance quotes, giving you some expert tips on navigating your next van insurance quote.
Just like car insurance, price comparison websites offer a valuable starting point for sourcing van and LCV insurance quotes.
Comparison sites like Go Compare, Compare the Market and Money Supermarket all gather van insurance quotes from numerous mainstream but also specialist insurers. This alone can save you hours of time consuming form filling in.
By entering your vehicle details (make, model, mileage etc) and your business or personal information just once, you can quickly access a range of potential policies tailored for commercial vehicles.
It's an important first step in gauging how much insurance is likely to be at that moment in time. Think of it as your quick scan of the menu outside the restaurant to see if you can afford to eat there.
Of course, there's a catch with using these services. Insurers pay to be on these platforms, giving referral fees to the site if you click or make a purchase. That means that in order to be on the site they must have done a deal with the comparison provider. Naturally not all the insurers will be listed on one single comparison site, so it's important to play the field a bit.
Going back to the restaurant menu analogy again, you've got to walk down the street and look at a few other options before you decide to step inside to eat.
Beware that even if you were to run searches on all the major comparison sites, not all insurers are listed there either. Some choose to avoid these comparison sites altogther. Direct Line for instance (one of the largest insurers in the country) aren't on any comparison sites - this keeps their costs down and helps to give you a lower premium (sometimes).
Likewise, there are hundreds of insurance brokers out there that can get better deals than those advertised. You'll have to go to them directly, but they'll then do the legwork for you.
It's also worth remembering that the cheapest headline price might not offer the specific coverage you need. Sometimes it might be better to check the websites of these insurers directly. That's because occasionally insurers offer cheaper priced coverage with less benefits on comparison sites.
While cost is a big factor when it comes to insurance, focusing solely on the cheapest van insurance quote can cause you a headache futher down the line.
The real value of a commercial vehicle insurance policy lies in the depth of its coverage, so when comparing quotes, make sure you examine what each policy offers.
Here's what to look for:
Accident damage: This is a fundamental aspect. Compare the level of cover provided for damage to your own van if it's involved in an accident, regardless of fault. Pay close attention to any exclusions, such as damage occurring while carrying specific types of goods or during certain business activities. Third-party fire and theft policies, as we'll discuss, typically do not cover damage to your own vehicle in an accident where you are at fault.
Theft: Commercial vehicles and their contents can be prime targets for thieves. Carefully assess the coverage for theft of your van. Does the policy cover the full market value at the time of theft, or is there a depreciation schedule? Also check to see if the policy covers damage caused during an attempted theft. Replacing broken locks can be really expensive and windows aren't cheap either, so make sure they're covered by the insurance.
Theft from the vehicle (tool thefts and cargo loss): This probably the most important consideration for tradespeople. Having your tools nicked not only means shelling out for more expensive kit, it also means no work during the days you spend awaiting replacements. It's a double blow. Check the policy's coverage for tools, equipment, and goods stolen from your van. Often there are limitations on the types of items covered and the maximum payout. There may also be specific security requirements (these could relate to the quality of specific locks or the type of alarm). If you can't find the right cover, you might need to consider separate commercial contents insurance. Standard third-party fire and theft policies rarely, if ever, cover theft of contents.
Did you know that the Ford Transit is the most stolen van in the UK.
Yes. We honestly don't know why this isn't a mandatory thing that insurers have to put into a policy, but legal cover is a critical add-on for LCV insurance.
Legal cover provides assistance with legal costs if you are involved in an accident that is not your fault and you need to pursue compensation for uninsured business losses, such as loss of use of your vehicle, loss of earnings, or damage to goods being transported, as well as personal injury.
When comparing quotes, look to see if legal cover is included. Sometimes it is, sometimes it isn't. If it's not included, see if it's offered as an option. Then look at the level of cover provided. This will usually be a £ amount, as well as details.
The most crucial advice we can give you when comparing cheap van insurance quotes is to make sure you are comparing policies on a like-for-like basis.
A significantly cheaper quote might lack essential business-related coverage, so be sure to look at the level of cover on the policy, the excess you will pay in the event of a claim, any mileage allowances or restrictions, and the type of goods/equipment that will be covered.
Make sure you check closely for items like tools, and don't forget about the legal cover. Is it already included or is it a costly add-on?
Similar to car insurance, the timing of your van insurance renewal can have a massive influence on the premium.
The exact sweet-spot might vary slightly with each provider, but generally speaking you should be aiming to quote and buy your policy around 21 to 30 days before your current policy expires.
If you're buying a new van altogther and need brand new insurance cover, then plan ahead as well. Buying it on the day you collect your new van will only cost you more.
Why do you need to plan ahead for buying your insurance? Well, insurance algorithms for commercial vehicles are complicated things. They not only factor in who you are, and the van you want to insure, but also the purchase window timing. Last-minute purchases can be perceived as higher risk for businesses, potentially leading to inflated premiums.
Planning ahead and obtaining quotes within this 20 to 30 day window may mean that the insurers assess the risk more favourably as you are a responsible owner looking to insure their vehicle early.
Resist the temptation to automatically renew your existing commercial policy without comparing other insurance quotes. Not only will you be missing out on finding cheaper van insurance, but you may actually be getting penalised for being lazy.
This might be a bit obvious to some, but trust us when we say that many people get confused by what sort of insurance they should be buying.
Ideally you want Comprehensive cover. This offers the most protection for your van, covering damage to your own vehicle (even if you're at fault), damage to third-party property, injury to third parties, theft of your vehicle, and fire damage. It may also offer some cover for contents.
Third Party, Fire and Theft (TPFT) cover is often spoken about as the cheap alternative to fully comp van insurance. It covers damage to other people's property or injury to them in an accident that you have caused. As the name suggests, it also covers loss or damage to your own van due to fire or theft. TPFT does not cover damage to your own commercial vehicle if you are at fault in an accident. It also doesn't usually cover tools or goods stolen from the van.
Don't automatically assume that TPFT will be the cheaper option for your van. Those pesky, but clever, insurers' risk models can sometimes result in higher premiums for TPFT policies, especially for light commercial vehicles, which are often seen as a greater risk anyway.
Get a quote for both types of cover, and see for yourself.
Having a No Claims Bonus can significantly reduce the price of your insurance with a big discount, but protecting it can be expensive.
Obviously if you've amassed years of No Claims Bonuses then you don't want them to disappear in the event of a claim. Most insurers will charge you a premium - usually around 10% to proect the No Claims Discount you have already earned.
It's definitely worth doing, however, it does go against the grain when trying to get cheap van insurance because it will add to the cost.
One of the quirks of insurance is that having other people on a policy can actually reduce your premium.
If multiple employees will be driving the van ensure they are listed as named drivers. Adding drivers, who are in a higher risk profile (young drivers or drivers with penalty points) will increase the premium, but equally by added less risky drivers you will often see that premium reduce.
Perhaps the sneakiest part of getting van insurance comes at the end when you've made your decision and you come to pay.
Insurers will always offer a yearly or a monthly rate, but what they often don't tell you is the interest rate they will charge you on the monthly payments. This is where the initial quotes can suddenly get warped by quite a bit.
If you plan to buy your insurance in one go, with a yearly payment, it will be cheaper. You'll see the best prices this way and its the best way to get cheap van insurance, but not everyone can afford this method. Consider putting its on a 0% purchase credit card, rather than taking the finance option. The insurer may charge you a fee for using a credit card but it will be a lot less than their monthly intrest rate.
If you know that you'll be paying monthly make sure you choose this option from the start on the price comparison websites. It will give you a much clearer indication of the price and they'll be no nasty surprises when the seemingly cheap insurance for your van suddenly gets a whole lot more expensive.
When you've finally found the quote you're happy with don't be afraid to wait.
Quotes will often be valid for at least seven days and many will be valid for a month. That means you can run a search for a quote during the golden window of 20 to 30 days but not actually buy it until the day you purchase your new van.
It's also possible that the prices will change a bit (not by huge amounts) during that time, so don't be afraid to run another quote check.
If you want to get cheap van insurance you do have to work at it, but if you compar van insurance prices in a logical and rational manner you'll be able to compare the cheap van insurance quotes properly, hopefully leading to some savings.
