LEZ rolls out in other countries – are we prepared

The London Low Emission Zone (LEZ) had a wonderful effect on December van sales as savyy business men tried to prepare for the worst when the zone kicked in on the 3rd January this year. The adverse affect, though, has been the increase in van exhaust thefts to kit out drivers who’ve not had the cash flow or don’t want to pay out for a new light commercial vehicle, either for the price itself or for sacrificing cheap van insurance in favour of a new policy to suit their new acquirement.

Now that new van registrations have slowed down, will the government put pressure on Norwich and Oxford and give them the green light to launch similar schemes in their cities? There are two foreseeable problems if that happens.

Firstly, one has to ask if businesses outside the capital have the money to invest in new fleets and go shopping around for cheap van insurance to go with them? And with the expected shortfall in quality used vans expected later in 2012, where will businessmen go? Should they just run the gauntlet and hope for the best? Not a good decision, although by actively seeking to convert their vans, will this put the message out to the thieves, highlighting a whole new market to the crooks.

Euro III compliance in, well, Europe

Europe is getting smaller by the week and, especially in the run up to the Olympics this summer, van drivers may be tempted to nip across to the continent to pick up a few extra jobs or for personal use. But what if their journey takes them into some of the cities that already have Low Emission Zones in place. Spain and France are clear of LEZs at the minute, but there are plenty of other countries who have been compliant for a while.

In Germany, the second biggest new van sales country in Europe, many cities are primed and ready to issue their fines. Italy and The Netherlands too have widespread cities that enforce Euro III regulation. Does a driver risk the fine applicable or run with a new van on hire to carry out these specific tasks.

Whichever way you look at it, reducing ones carbon footprint will be a must for all in the near future. The good news is that van insurance companies do offer cash incentives or discounts the greener you vehicle is. Costs may be offset by opting for cheap van insurance quotes by reducing levels of cover and increasing van security.

Don’t forget, if your journey is taking you into Europe, you will need a green card to keep your van on the road if you suffer an account out there. If you’ve not got one embedded in your policy, you need to be getting one from your broker, who will be only too glad to bolt this on to your existing cheap van insurance.

Low emission zones affecting cheap van insurance nationwide

Irrespective of any successes on impacting the capital’s carbon footprint that London’s Low Emission Zone can claim to have had in its formative months, one thing it did affect in the run up to the new year was the extra sales and registrations of new vans. Tradesmen who would be operating within the zone certainly made a bee-line for the dealerships to get their hands on vans that would see them escape the deterrent fine of £100/day that being above the Euro III threshold would incur.

To coincide with the new vans being registered there was also a glut of savvy tradesmen shopping around online to compare cheap van insurance quotes to see whether there was an added advantage through this medium for saving an extra few bob by reducing the amount of van cover they would be liable to have to shell out to coincide with their shiny new light commercial vehicle.

There may have been some savings to be had due to increased engine efficiency and manufacturer’s warranties being in place but, according to the used van sector, an equal amount, if not more van drivers either opted to hold on to their existing model a while longer or bought second hand to go on and modify exhaust systems that had special filters to enable their emission levels to comply.

Either way, these measures would have had an effect on their base van insurance policy by way of modification to the existing specification of the van or reduced to a cheap van insurance policy if the age of the vehicle rendered it below a certain value to replace, a ploy often used by tradesmen looking to reduce the over all costs of their business.

According to one recent survey there are approximately 85,000 vans registered to properties and businesses operating out of London itself, a figure that has had a detrimental effect for some van owners elsewhere in the country who have had their exhaust systems stolen to be resold to this large market awaiting modification.

Due to the expertise of the thieves involved and the fact that they seem to picking on towns at random to execute the break-ins and thefts, police forces across the country have been led a merry dance and are now having to pool their resources in an attempt to capture the purveyors of this crime wave that is leading to dozens of not-so cheap van insurance claims. The worrying aspect is, what will happen as other cities across the country look to introduce their own LEZ‘s?

In the next article, we look at the implications and ask if the van driver is prepared to make sacrifices to meet similar standards abroad, as many major cities have had the ban on high emissions in place for a while.

Please either skip to the next article or check out much you could save on your van insurance quotes by utilising our own online form.

ECOB report into fuel duty stokes fury all around

So, it’s official, then. The UK is the highest taxed nation in Europe on fuel. This is something that many people, business owners and the man on the street alike, have often suspected but, according to the latest findings in a report hailing from the offices of ECOB, the European Commission Oil Bulletin, commercial drivers in the UK are paying at least ten percent more tax on diesel than anywhere else on the continent.

This will anger organisations with large fleets who may have strived to cut costs by economising on their vehicles or making extra efforts to source the cheapest van insurance, only to have those efforts negated by the EU commission’s findings. It is no wonder the government decided to hold back on the fuel levy they hoped to introduce in January, but what will it mean for the ones planned and imposed after this latest news.

This announcement comes only days after the government rocked businesses everywhere by announcing that the threshold for company car emission for qualification for the lowest bracket for company car tax would be 99g/km CO2 emissions, a reduction of more than twenty percent from 120g/km, a figure that car and van manufacturers have been working towards to service the fleet market for some time. Thus, proving it is even more imperative for drivers to secure cheap van insurance if they are to have any hope of keeping within budgets for the remainder of 2012.

Considered driving will save on fuel costs and van insurance

Even the Tory MPs are now revolting against the revelations revealed in this latest report. Phil Davies, one such Member of Parliament for the Conservatives, reminded the PM that fuel duty was already ‘too high’ and that ‘hard-pressed families’ were going to struggle to meet the new demands made on them to keep their cars on the roads. He likened this latest news to a ‘kick in the teeth’ for the UK population and hinted that public spending, not low taxes, had been the root cause of our economic misfortune.

The one bit of advice for van drivers to combat the rise in fuel prices, reaching £1.50/litre in Coventry for the first time this week, is that safer driving can lead to cheaper van insurance. By keeping top speeds down, fuel consumption can run closer to the optimum level. Domestic car drivers have already seen reduced accident rates on UK roads due to this extra care; as van drivers statistically are the safest drivers on the road, by incorporating fuel-efficient driving into their day-to-day driving habits, they should have no issue in retaining their no claims bonus, therefore reducing the cost of their van insurance quotes by the additional discounts this brings with it.

As a comparison in fuel duty to our European neighbours, whereas we are paying 60% and 58% duty for unleaded and diesel respectively, French and German drivers pay below 50% duty. If you travel to Luxembourg, the rate there is only 38% duty. And if you’re sensitive to harsh reality, look away now. According to one recent survey, without fuel duty, the price for a litre of diesel would be £0.60, not the £1.50 we are now seeing. Sorry if that offended you; you’re not alone.

Olympics could open the door with right van insurance

No matter where you are this summer, you’ll do well to avoid traffic jams, tourists used to driving on the right hand side causing mayhem and thousands of potential bumps and scrapes which will threaten many cheap van insurance policies as the Olympics comes to the UK.

With five months left to the opening ceremony, firms in and around stadia all over the UK are starting to panic about the disruption that the thousands of visitors to the games will cause. For those businesses that have little time to devote to differing strategies, it may be advisable for them to consult specialists in software technology to help avoid the busiest routes intended for The Games’ usage in order to at least give their no claims bonuses a fighting chance.

Paragon Software Systems are one such organisation who have had the responsibility from its customer base firmly on its shoulders for some time, especially those companies in and around the capital where there will be a massive focus on transport, both commercial and public, delivering support, athletes and spectators to the various events.

It is imperative that companies like Paragon have had the forethought to prepare this free software that it has given to its existing customer base. Not only to transport people, but there is expected to be a huge increase in demand to keep shops, hotels, pubs and restaurants shelves’ topped up and the logistical nightmare that this type of operation will entail.

There is expected to be a big rush for refrigerated vans; many of the Olympic contracts have been tied up for years, rather than months, to supply consumables to the swell of visitors the capital and other host cities are expected to have to endure. But there will still be other domestic services acting as third party businesses to make the games run smoothly.

This may mean that existing organisations have to adjust their modus operandi for the duration as trying to operate under usual circumstances will be all but impossible, especially those on stadia doorsteps. There will prove to be some opportunities too good to turn down, especially when it comes to food and drink transported in a sound and secure manner to and from the events.

If you fancy the challenge, but are concerned about the expense of van insurance for refrigerated units, check out our online form to see if you can get a cheap van insurance quote to kick start a summer opportunity that could see you winning gold of your own.

UK economy contrasts to EU in new van registrations

As figures are analysed to piece together a picture from last year’s European van market, there is a very clear parallel being drawn between a country’s overall economy and the registration of new vans. With perhaps the UK being the exception as citizens prove industrious in seeking out new opportunities as traditional industry and shopping habits encourage growth in the service industry.

This shift has lent to more cheap van insurance policies being upgraded to include courier services within their remit as armchair shoppers steer clear of the High Street and prefer their goods brought to the door. This, in a round about way, makes sense in a nonsensical manner.

Looking at the major European contributors to the Eurozone for reference, registrations of new vans drew direct comparison with their economies. Germany and France, whose economies seemed to escape the worst of the global downturn, finished 2011 recording high levels of new vans. France, the largest user of new vans on the continent, almost reached half a million units with Germany selling ten percent more than the UK’s final total of slightly more than 300,000 units.

Italy and Spain, whose economies are in grave danger of leaning on the central funding of the Eurozone, saw their van registrations fall, as did their countries outputs. This is obviously good news for van drivers as those who do register their new vehicles have the edge of competition on their side in the search for cheap van insurance as, with fewer units to insure, brokers sharpen their pencils to secure the business that is out there.

What has made the UK different is, although their economy grew by only 0.8% on the year, new van registrations were hiked by 17.6% on the year – this is a massive imbalance, compared to the rest of the continent, which finished up 7.5% overall for 2011.

The Low Emission Zone helped, with van drivers looking to escape the £100/day charge for non-Euro III compliant vehicles that came into being on January 3rd.  On top of that, organisations, seeing their niches contract, hoped to capture more sales in different areas by offering larger fleet services. And, as mentioned above, the growth of courier services, as suggested by courier van insurance policy registration and more online organisations to help those looking to start a courier service springing to life on the Internet, the mix seems to justify the amount of new van registrations compared with the economic stagnation of last year.  Confused?  Me, too.

The question facing the industry this year, as the austerity drive seems to be hitting home harder rather than relenting, is will the home-shopping market record figures this year as it did in 2011 and sustain the fleet courier van market? We will have to wait and see, there.

Shortage of quality used vans may lead to pressure buying

To go along with the recent thefts of complete exhaust systems and increased numbers of tool theft from unsecured vans that has been sweeping the country recently, causing havoc with van owners’ van insurance quotes when it comes to renewal, having had to have made sizeable claims to cover their replacement costs, there is now a new warning being posted for van drivers up and down the country.

As organisations look to cut back on costs, the market for used vans has seen massive growth, with auction houses BCA and Manheim reporting record figures going through their books and predicted shortfalls in units for certain sectors of the used van market inevitable later in the year. The savvy crook has already picked up on this fact and the new warning is being issued by van insurance firms to be on the lookout for those in the market who may be approached by people claiming to be the van’s rightful owner but are instead fronts for organised gangs stealing vans lock, stock and barrel.

There are guidelines for buying second hand commercial vehicles and van owners are being urged to follow them. It is only when van drivers get the vehicles home and come to register them or search for cheap van insurance that they’re realising they’ve purchased a stolen vehicle.

Following a statement by a spokesperson for one such van insurance company, which urges tradesmen to “take the necessary steps to protect themselves”, here are a few recommendations before you part with your cash:
• Wherever possible, buy your vehicle from a recognised used van outfit. There are legal requirements for the roadworthiness of a van so that it can meet MoT and van insurance prerequisites before they’re allowed to hand over the keys that they must follow
• If buying privately, ascertain the make, model, year, chassis number and registration details of the van from the private owner and check the van out on the web before travelling to make the purchase
• Once satisfied that the van is legal, have the van properly looked over by a mechanic (again, from a recognised franchise if possible); they will give an unbiased view of any tweaks needed to comply with the updated regulations for the MoT test
• There are times when owners sell the van due to financial issues and they may have outstanding debts on any hire/purchase agreement; you will not become liable for those debts, but outstanding finance records against a vehicle may impact your van insurance quotes when you come to compare van insurance online
• Check with the DVLA that the car has not been registered as a write off or been involved in any major road traffic accident that the private owner may have neglected to tell you about.

By following these guidelines, you should ensure that your van has no hidden past and that there will be no nasty shocks awaiting you when you thought that by buying second hand, it would avail you of cheap van insurance. But get in quick – it’s a sellers market and with businesses hanging on to their vehicles eleven months longer in these austere times, quality used vans are not on the market for long.

Know how to use van insurance comparison sites beforehand

Using comparison websites to find cheap van insurance deals is without a doubt the most effective way to ensure that you have the best deal for the cover you need for your business. However, there are two assumptions there:
1. the customer knows which van insurance is best for their business
2. the customer is familiar with how a van insurance comparison website works

A couple of things to consider when deciding what type of cover you’re looking for are: whether it’s a cheerful cheap van insurance policy if you only travel short distances, not often and is locked up safely overnight or whether your light commercial vehicle takes you up and down the country transporting expensive tools of the trade that you could just not do without and may be prone to spending nights on hotel car parks if a job is far from home with a lengthy duration, even to Europe.

If your van fits into the first category, and you only need cheap van insurance such as a third party fire and theft, there are still things you ought to consider to bring the quote down even further. Extra security features, increased voluntary excess and no claims bonuses to name a few. Don’t think that because you’re opting for the cheapest van insurance policy on the comparison site that you can’t negotiate down further!

Cheap van insurance is no good to you if it does not cover your van’s purpose in business

If your job takes you into the second category, you are travelling more miles and are seen as more ‘at risk’ by a broker than the local van driver. Should this be you, then you really ought to consider hi-tech security, such as immobilisers that work on personal identification to prevent theft, GPS trackers so that in the event that your vehicle’s stolen from unsecured premises it can be easily traced anywhere on UK roads as well as the no claims bonus and voluntary excess.

However, you will need to tag on extra cover, such as a Green Card if your automatic base van insurance policy document doesn’t incorporate EU travel, certainly tool cover or goods in transit and possibly breakdown cover if you do not have this as a separate commodity. And certainly go fully comprehensive if you spend a lot of time travelling as you’re statistically more likely to be involved in a major RTA the further you drive – the simple law of averages works that one out, as well as your van insurance broker.

All these will be extra costs over and above the base cheap van insurance policy, but worth the extra premium should you need to rely on the extra cover in light of a claim, either made by you or against you.

With regards to filling in the online form, the best advice is to gather as much relevant information about your organisation and the way you use your van before you compare van insurance online. You’ll soon get used to the type of question and they’re not there to trip you up, unlike the impression you may get when obtaining a quote from a van insurance company, direct. The whole purpose is to find you the cheapest deal, but still cover you in anticipation for the way you use your van in your day-to-day business activities, and no more.

Try not to adopt the ‘just in case’ methodology. If you don’t currently carry expensive tools or travel to Europe on business, don’t include it in your quote – you can always speak to your broker about getting ancillaries tagged on as and when the occasion arises that you actually need them. Remember, the online form is there to help you save money, not give you the opportunity to spend more than you should.

Use van insurance to increase your liability cover

Van insurance can be as cheap as you want to make it, but many traders, in their attempt to cut costs, can often leave themselves exposed by not having adequate cover in the event of an accident. As well as negating the point of having van insurance at all, it can also have dire consequences on the individual’s livelihood in the event of a claim against them.

As well as providing cover for third party only or ‘and theft’, it is imperative that a sole trader has made sure that their van insurance quotes incorporate some type of liability insurance within the policy somewhere.

The level of cover for this aspect of your van insurance will depend upon the nature of your business and how much your driving brings you in contact with the general public and how ‘at risk’ you perceive your business activities make you. Admittedly, the higher the value of liability you ensure your van for will add to your initial cheap van insurance quotation, but it is worth that little bit more for the peace of mind.

If you are using a van insurance comparison site, they are often excellent ways of factoring in this extra cover. But you will need to know what to look out for when you’re building in the aspects applicable to your business when you’re constructing your van insurance quote online.

Tradesmen’s liability is probably the one you’ll want to be looking out for as it incorporates both employer’s and public liability in one fell swoop, which in their own rite cover the tradesman for £5M and £1M as minimum legal requirements, respectively. This will then extend the van owner’s cover to staff, customers and anyone with whom ‘the business’ comes into contact with during the course of its day-to-day activities.

If your trade is purely as a driver for a larger organisation and you are an employee, it is highly probable that the firm for who you work will have built this cover into their fleet van insurance and you should not have to worry about insuring yourself over and above the level whilst carrying out activities on behalf of the company.

However, if the company has deigned that employees can utilise their commercial vehicles for personal use outside of working hours, it is critical that you confirm what level of van insurance is applicable to their benevolence and who is liable in case of any incident.

If you are dealing with a van insurance broker rather than with a specialist cover provider direct, it is possible that you will be able to get even cheaper van insurance by taking out more than one type of insurance with them, as long as they are licensed to provide a variety of policies, accordingly.

Take this opportunity to compare van insurance using our online form and see how much you could save by having liability insurance bolted on to your base cheap van insurance quote.

Is Jolly one of the seven dwarfs or one of the Plug-in EVs?

Who wants to get cheap van insurance and a heavily discounted van all in one fell swoop? Don’t believe it’s possible? Think again.

The government has issued the list of ‘green’ vans that qualify for up to £8,000 discount (20%) as part of their Plug In Van Grant incentive. Of the seven included, four are available right now with the other three manufacturers’ models becoming available between now and May.

The criteria upon which the vans have qualified are exacting but, if met, all lead to cheap van insurance as well as the heavily discounted list price. The qualifying standards for the ultra low carbon emission vans is as follows:

i. CO2 emission < 75g/km – simply put, each van has to emit less than 75 grams of carbon for every kilometre travelled. This is well below the threshold set for the new low-band qualification for company vehicle tax, so by opting for one of the vans on the list you are not only going to get the cheapest van insurance quotes but also the driver will save on their personal tax

ii. Minimum 60 miles on one charge or 10 miles on electric-power only mode for hybrid vans – obvious milestone in itself but, put into practicality, it is suitable for businesses whose traversing takes them around town on several multi-drop local deliveries and collections but is perhaps unsuitable for motorway and distance driving

iii. Top speed > 50mph – the engine has to reach fifty miles per hour and performance remain unaffected with maximum payload on board; for businesses suited to this type of van, this should not inhibit usage. With a top speed around this mark, you are guaranteed cheap van insurance as you are less likely to cause considerable damage than a van that can reach 70mph+

iv. Meet EU qualified safety standards – speaks for itself.

The actual manufacturers that have had their models incorporated are diverse and global. Some you will have heard of, others are not such household names. From Azure Dynamics (who? you say – wait for it…) we have the Ford Transit Connect Electric (ah, now you know!). Mercedes Benz also make the list with their Vito E-CELL as well as another EU manufacturer, Renault, with their multi-award-winning Kangoo ZE. And to complete the models available now, there’s the Smith Electric Smith Edison, plus the variations on the model, namely SE2 & SE3.

Coming later in the year, we have 2 models from Faam due for UK release in March, the aptly named Ecomile and from the same family, the Jolly 2000 (and: no, that’s not a remake of a Fools and Horses episode, it is an electric van). Then finally in May, Mia-electric plan to bring us the Mia U.

If you have your eye on one of the ultra low-carbon models, you could save a packet in minutes by comparing cheap van insurance quotes using our online form.

Seven vans on EV shortlist hoping to dwarf insurance prices

Seven low emission vans have been named in the government’s ultra low carbon emission ‘Plug-in Van Grant‘ scheme that will see fleet managers, business owners and tradesmen qualify for 20% off the manufacturer’s list prices for electric vans.

The announcement that the extension to the commercial sector from the domestic car market was made known at the beginning of the year.  However, it has taken several weeks for the finalised list of vans that will be included to be published and the list, which includes some vans that are already on sale and others that are scheduled to be released later in the year includes some unfamiliar manufacturers and models.  The exclusions are also quite surprising, especially after some of the extensive prototype testing we have seen in our own capital and awards that have been won for vans in other places in the world that have simply not appeared at all.

It is quite obvious where the governments incentives lie. Getting the economy back on track through saving businesses money and reaching carbon footprint targets is seemingly more important than bringing realistic prices for electric cars to the public as the discount for light commercial vehicles is a maximum of £8,000 compared to £5,000 for cars.

To make battery powered vans even more of a no-brainer for the busy tradesman there is a call for cheap van insurance to accompany the reduced cost of the van itself.

It is hoped that cheap van insurance can be achieved because of the price strategy that manufacturers have cobbled together for electric vans. Businessmen can buy the van, chassis, and keep the vehicle topped up with electricity but manufacturers are claiming ownership of the battery itself in perpetuity. As well as paying for the electric every month, electric van owners will have to shell out for the battery hire to whichever dealership they have purchased the van from in the first instance.

The offset in that cost is hoped to be achieved through cheapened van insurance as the broker or direct insurance agent will never have to be responsible for the upkeep of the battery, a high-priced component in its own right.

In the upcoming exhibition at Silverstone where manufacturers of this mode of power will be hoping to convince fleet managers that switching to electric power is the way forward, it is hoped that there will be clarification on this issue.

The criteria for the qualification of the electric vans will be explained in the following article, here on cheapvaninsurance.co.uk.

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