Van insurance matters – think before you buy

Okay, you have done the impossible and squeezed a business loan out of your bank and those pound signs are positively twinkling at you as you stare at your online balance. In the other two windows, you have a new van that would suit your purposes, in the other, a bigger van slightly older but still within your budget. Which do you choose?

The temptation is to opt for the larger van ‘just in case’ you take on other contracts. The likelihood is, when trying to get your business off the ground, you will be concentrating so hard on developing the products within your brand, other contracts will be the last thing on your mind.

The bigger the van, the larger the van insurance policy

There are many aspects that affect the eventual total of your van insurance quote. Smaller vans are more manouverable and easier to handle and proven to be less accident prone than a larger version. Also, the more varied the scope of what you want your van insurance policy to cover, the more incremental components will be added as ancillary costs to your basic premium. Both are excellent reasons for choosing the van more suited to your business rather than go for larger capacity vehicle on the off chance of extra jobs.

The drive or do conundrum

As your business expands there will be a period where you’re caught between the devil and the deep blue sea. The orders are starting to come in, but, as well as needing processing, they also need delivering – you can’t do both.

The temptation is to hire a young gopher; the role may only be part time or purely to do the driving. However, you need to be aware that, although you may save on a youngster’s salary, the van insurance for a young driver may seriously jeopardise the economy of employing someone of that age.

Postcode penalty

Where you base your business may also have an effect on your potential to find cheap van insurance. The price for premises may be slightly higher in a well-to-do area, but it may be a worthwhile exercise running a few postcodes through the insurance comparison facility to see how different areas affect all aspects of your insurance.

Show the insurance company you care

What’s on the outside of your van can have an effect on a van insurance policy. Yes, if you are carrying precious cargo or your product is excessively high in value, that will have a bearing when retrieving a van insurance quote. But if you have taken the time to have your new van dressed with your company’s insignia and logo, the insurance broker will take you more seriously and probably discount the policy in your favour.

It is key to get into good habits at the start of your business life; anyone of these will not only get you thinking like a businessman before you start splashing your capital, but will hopefully save you hundreds of pounds in the long-run, too.

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