Finding cheap van insurance

For people who run their own business, a van can often be the most important thing they own - it can be used to transport raw materials and also to deliver finished products.

Making sure the van has adequate insurance is vital, as if it is out of action, even just for a few days, it could have long-lasting effects on the business and its turnover.

Getting the right insurance does not mean it has to be the most expensive, if van owners compare different policies then it will be possible to find cheap options and save money.

But first, the van owner must decide what the van is going to be used for, who will drive it and where it will be stored.

Who is driving the van?

Details about the primary van driver and others who may be using the vehicle could affect the price of the insurance policy.

If a motorist is older, has more experience driving and has no convictions then the van insurance will be cheaper.

But if the van is being driven by a younger person - a teenager or someone in their early 20s - then the price will go up and if they have motoring convictions then the cost will increase again.

Another consideration is whether the driver has built up a record of no claims or not. If the main motorist has a one or two year no claims bonuses, then the price will drop.

If a company wants a range of different motorists to drive the van then a way to reduce the cost is to choose the person with the most experience, cleanest licence and no claims bonus as the main driver.

What is its purpose?

If the van is only being used to drive short distances in the UK then there is no point paying for a premium that includes European cover. Likewise if it is being used all over the continent to drive huge distances, the insurance must reflect this.

Before taking out van insurance it is a good idea to make a plan about where the van will be driven, as this will impact on the cost and if it is being taken abroad the cover price is likely to rise.

The amount of mileage that a van covers will also be a cost factor.

Deciding what the van will be carrying could be a cost factor, as a different level of cover will be needed for expensive tools, business products, construction equipment and electronics. One way of getting cheap van Insurance is to remove all items from the vehicle when it is parked and going to be left for long periods of time.

When the van is out of use, where it is stored is an important thing to take into account. The insurance cost will vary depending on whether it is kept locked in a secure garage, on a road, a drive or in a public car park.

Things to include

While it is important to compare van insurance policies and find something that offers value for money, there are some features that it is important not to do without.

Because a van is often the most important part of a business, it is important that it has fully comprehensive cover, rather than third party. Motor prosecution cover is also a good idea as it will cover the company for all sorts of eventualities.

Making sure that goods in transit are insured is important, as is getting tool cover and legal expenses paid for. A key locator is also a money-saving add-on and could save the company money in the long term and be useful if lots of motorists are using the van.

Breakdown recovery and alternative transport options are also vital.

Getting the cheapest van insurance

Although it is important to make sure the company van is fully insured it can be a pricy venture and it is worth looking into ways to make it cheaper.

One way to reduce the cost is to compare van insurance policies to find the cheapest option - if you shop around then it is easier to cancel out clauses and add-ons that are not needed.

Some tips for finding cheap van insurance without leaving it underinsured are installing security devices such as a burglar alarm, tracker or a wheel clamp.

This could make van insurance cheaper and will also act as a deterrent to prospective thieves, making vandals think twice.

You may want to get van insurance from Moneyextra.com.     

2009-12-11 10:26:08 © Moneyextra.com

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