As part of your on-going drive to cut costs and prove that there is cheap van insurance out there if you look in the right place, we continue the guide by looking at the type of commercial vehicle you’re looking to insure and what purpose it will play as part of your business.
First of all, the van itself. Insurance companies look at your vehicle in a way that we, as commercial vehicle owners, don’t. That won’t surprise anyone, but it does help us to know where they’re coming from so we’re forearmed in our search for the cheapest possible van insurance.
There are three major aspects that brokers take into account when assessing your application. Like everything else in life, size matters. Your attempt to achieve knock-down van insurance is no different. Assuming that the second and third criteria, those being value and cost of repair, accrue at the same rate as the size, then the premium is usually more expensive the less likely you are to secure cheap van insurance.
Once you have to hand the details of size, value and cost of repair, there are three possible usages that insurance brokers see as your van’s purpose, to add to the equation.
1. Transport of your own products.
• This is the choice if the goods you plan to carry are your property until you deliver to your customer; this is also the option if your profession carries your tools of the trade, such as heating engineer, plumber or builder. You will be covered for use of the van for some personal use, outside of work hours;
2. Haulage or courier service
• If you are carrying someone else’s product from a to b and you are being paid for the transportation only; you have no input into the product you are carrying nor its intended purpose;
3. Social and domestic purposes only
• If you are only using for fun, and will never utilise its capacity for work purposes, this is the option to choose.
And that really is all there is to it for that part of your drill-down into cheap van insurance. The choices are straight forward enough, but now we know what criteria our van insurance is base upon, we can either choose wisely in our choice of commercial vehicle at the outset or budget accordingly, thereafter.