What Kind of Insurance Do I Need for a Van?

Leonardo Castro
November 3, 2020

As with any other vehicle, owning a van has lots of responsibilities which includes having the right insurance to legally drive the van. With insurance, you can save money if there is an accident because insurance serves as protection. For example, if you are in an accident and are the owner of the vehicle, you can file a claim with the insurance company to pay for losses, such as medical costs and property damage.

Van insurance is a more specialized type of auto insurance that is intended for vans and cargo vans only. Regular auto insurance works to cover potential accidents but van insurance offers the owner more comprehensive coverage.

Who Needs Van Insurance?

Many businesses require the use of vans to keep their business running. Vans are often used by florists, caterers and other businesses that require delivery or pickup of items. Every vehicle used by a business must have van insurance to protect the vehicle and product(s) inside the van. If you or your employees drive a van, you’ll need an insurance policy that protects your belongings, employees and yourself.

Examples of businesses that may require van insurance:

  • Couriers
  • Florist
  • Caterers
  • Electricians, plumbers, and handymen
  • Removal businesses
  • Waste haulage
  • Transportation
  • Cleaning Businesses
  • Businesses that restock frequently
  • Delivery services

What Are the Different Types of Van Insurance?

There are two types of van insurance which are commercial and noncommercial. Noncommercial (or private) insurance is for drivers who use a van for personal but not business use. Commercial insurance covers vans that are used for business or any van that is used to generate income. Some examples of these commercial uses of vans are listed above.

Looking for Van Insurance?

If you need commercial van insurance then you should definitely consider coverages such as liability, comprehensive and collision coverage. Buying more than liability insurance will be an extra cost but it can save you money in case of an accident.

Types of Coverage for Van Insurance:

Liability insurance protects property damage to the other vehicle and other property that may have been damaged. It also protects the other driver and passengers with their medical bills.

Comprehension and collision coverage protect your van if you are at fault in an accident or if the van is vandalised or stolen.

Uninsured/underinsured motorist property damage coverage protects you when you are in an accident with someone who does not have insurance or does not have enough insurance.

Business property insurance coverage will protect assets in the van if it’s for commercial use.

What Are Average Van Insurance Rates?

As with any other type of insurance there are many factors that are taken into consideration to determine the price of your van insurance policy, including your location, intended usage, driving history, claims history and miles driven per year. Also every state has its own minimum requirements for coverage, which will affect how much your policy costs.

For personal use, van insurance can be less expensive than regular car insurance. It is much cheaper because they are less likely to be involved in accidents.

It is also worth noting that a van as a second vehicle in a household can make the cost even cheaper.

Ways to Keep the Cost of Van Insurance Low

When asking for a quote with an insurance company make sure to ask if there is a discount for having a clean claim history. With this information, many insurance companies will see that you're a safe driver and may lower your insurance rate. If you are not aware of the number of claims you have filed, ask your current insurance provider before comparing for a better van insurance rate.

In many cases adding safety features to your van may help lower the insurance premium cost. For example, adding approved alarms, immobilisers and/or trackers are some security features that can lower the cost of the insurance premium. Before spending money on adding these on, it’s best to check with your insurance company to see if they offer a discount for safety features.

When getting a quote you usually have to estimate the average value of the van. When you overestimate the value of your vehicle and and include add-ons then it will result in higher premium insurance cost. So it is important to not over overestimate and only cover the necessary property.

Another way to lower your rate is to park in a safe space like a garage so that there is a smaller risk of theft or vandalism.

Your rate also drops if you drive fewer miles because of the reduced risk of having an accident.

The easiest way to save money is to compare rates for personal van insurance or business van insurance.

Get a Free Auto Insurance Quote Online Now.

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