With the rising costs of van insurance, many commercial vehicle owners are considering ditching their comprehensive policy in favour of a cheaper alternative.
Generally, that means a choice of just two: third party, fire and theft or third part only.
‘Third party only’ is the least possible cover you can have as a van insurance policy to legally allow you to drive on UK roads. It does, as the name suggests, only give you limited protection from the many hazards that can befall a commercial vehicle (and its driver) in a business’ general driving duties.
However, if you only drive short distances and not very often at that, plus you know that your premises are extremely secure, this van insurance can be a viably cheap option.
‘Third party only’ insurance will cover you if someone claims against you for personal injury to them or if they claim for damage to their vehicle or property.
If you think a ‘third party only’ van insurance policy is inadequate, especially if the area where your van is liable to be left parked or unguarded for some time and the possibility of it being taken without your consent is only too real, you may want to upgrade slightly to protect against this eventuality.
Comprehensive van insurance cover may be a step too far, especially given the current economic climate. The intermediate van insurance cover is ‘third party, fire and theft’.
‘Third party, fire and theft’ van insurance not only covers you for the cover provided by ‘third part only’, but also will compensate you if your commercial vehicle suffers damage through being set alight or if it is stolen. Or, indeed, both.
Whether cost is an issue to you or not, it is always worth checking with your van insurance broker how you can make your premium cheaper. You will be surprised at how receptive your broker will be, especially if you show that you are serious about your business.
If security is a personal priority to you, irrespective of the area you live in, and you have security features fitted to your van your commercial van insurance provider may consider discounting your premium as these measures can act as a deterent to the opportunist thief.
Likewise, something as simple as having your brand logo on your van will show your insurance broker that you are serious about your business, therefore less likely to be haphazard in your driving.
There are also two ways of saving if you have an exemplary driving record. Firstly, ensure you get your no claims bonus. Even if you are transferring van inusrance provider, mention it; they will often offer an introductory offer comensurate to no claims to secure your business.
And if you believe your driving prowess will prevent you from making a claim, raise your excess level – the level you pay towards any one claim before the broker has to dip into their coffers. The more you offer to pay, the less your premium will be.
Whichever van insurance policy you decide is right for you, comprehensive, third party, fire and theft or third party only, be sure to see how much you can save via our selection of hand-picked brokers, using our van insurance comparison facility.