Annual mileage
Before giving you a free van insurance quote, some companies will want to know how many miles you drive in a year.
The more miles covered in a year, the greater the risk of a potential claim.
Business mileage
Before completing a van insurance quote, you will need to indicate how many miles your van will be driven for business purposes. As with annual mileage, the greater the amount of mileage you do, the higher the risk you are of making a claim.
Certificate of Insurance
This is evidence of insurance as required by the Road Traffic Act, which is issued by your insurer.
Cover note
A cover note is a temporary certificate of insurance issued if you have not yet paid or when you have been given temporary extensions of cover.
Cover types
Remember: it is important that you buy the right cover for your van. If you buy the wrong cover, your insurance company might not pay out on a claim. The following are the three most common types of car and van insurance in the UK:
- Third Party Only (TPO)
Insurance covers any claim by third parties. This does not cover damage to the driver's own car/van.
- Third Party Fire and Theft (TPFT)
Insurance covers fire and theft of the driver's car/van in addition to TPO cover.
- Comprehensive (Comp)
Insurance covers accidental damage to the driver's car/van in addition to TPFT cover.
Excess
Excess is the amount of money you will pay in the event of a claim. The excess amount will vary across the various van insurance companies. Quite often, the higher the excess you opt to pay, the lower your van insurance premium will be.
Fault and Non-fault claim
The terms fault and non-fault can be confusing. A non-fault claim in simple terms is a claim where the insurer is able to recover all their costs from someone else. If they are not able to recover all their costs, then it is a fault claim - even if the insured party didn't cause the claim to happen.
Hazard
In insurance terms, hazards are what are likely to affect any loss, damage or injury. For example, a young driver is a greater hazard than an experienced one, or a van with a larger engine would be a greater hazard than a van with a smaller, less powerful engine.
Immobiliser
An immobiliser is an electronic device that stops a van from being started until it is deactivated. Although this won't stop the van from being broken into, it may well stop it from being driven away.
Most new vehicles come fitted with immobilisers and this will help in lowering the cost of your van insurance.
Import
It can be difficult finding van insurance for UK-imported vehicles as some companies won't cover import vans at all or impose a surcharge.
Imported vans fall into two types for van insurance:
- UK-specification vans
These are vans brought in from abroad that match UK specifications. Some companies will insure these but not all.
- Non-UK specification
These are vans that are brought into the UK from abroad but don't match current UK specifications. These vans are more difficult to insure because of the lack and availability of parts.
Indemnity
This is the main principle of van insurance. Insurance exists to replace something that has been lost or damaged, and an indemnity seeks to restore the insured person to the same financial position after the loss as immediately before.
Insurance broker
Some van insurance companies sell their van insurance policies through intermediaries or insurance brokers. Brokers are extremely useful as they have access to numerous van insurance companies and are therefore able to negotiate a better van insurance premium for you.
Main driver
The main driver is the person who will be driving the van the most. It is important to be honest here, if an owner claims to be the main driver but lets someone else, such as a son or daughter, use the car permanently, an insurer can invalidate any claim.
Modifications
Modifications are changes that have been made to your van since it was produced. This would include the addition of alloy wheels, spoilers or engine modifications.
No Claims Bonus
This is the discount that drivers have earned on a previous insurance policy. Insurers give discounts determined by the number of years that a driver remains claim-free and a NCB must be earned separately for each insured van.
Owner and Registered Keeper
There may be a reason for the owner and registered keeper of a van to be different. For instance, you may drive a company van that is owned by your employer or a lease company, in which case, you would be the registered keeper.
Points
These are added to a driving licence if the driver is convicted of a motoring offence such as speeding. Points will increase the van insurance premium, as the driver will be viewed as a higher risk.
Protected No Claims Bonus
Some van insurance companies will allow protection of No Claims Bonus (NCB). If this is the case, it will mean that you can make a number of claims over a specific period of time and it will not affect your No Claims Bonus.
Protecting your No Claims Bonus does not mean that your premium will not rise should you make a claim. By protecting your No Claims Bonus, you are simply ensuring that you are protecting the discount you receive.
Rating Factors
Rating factors are used to determine the price of your van insurance premium. Such factors include age of driver, type of vehicle, or postcode.
Risk
All van insurance is offered by assessing a driver’s risk. Insurers do this by looking at the person’s details that they have provided and asking how likely the driver is to make a claim.
Tracker
A tracker is an electronic device fitted to a van that emits a signal enabling law enforcement agencies to locate the van anywhere in the UK if it has been stolen. A tracker would normally be fitted after a van has been purchased and it could reduce the cost of your van insurance premium.
Uninsured Loss Recovery (ULR)
This is the way in which a driver can protect themselves from uninsured drivers. This is also known as Legal Expense Cover. This can come as standard on van insurance in the UK. If not, it is normally available for a small additional premium.
Use Types
It is important to remember when arranging van insurance online or over the phone, you must have the right use for your van. If you have the wrong use, you may find your insurance company will not pay out on a claim.
The following are the standard types of use for van insurance in the UK:
- Social, Domestic and Pleasure
This covers drivers for normal day-to-day driving, such as driving to visit family and friends or shopping.
- Commuting
Covers drivers to drive back and forth to a fixed place of work.
- Business Use
Covers the van in connection with your job, such as driving to different sites away from your place of work.
- Haulage
This covers the van to be driven from place to place carrying goods for hire and reward purposes.
Voluntary excess
The amount a driver chooses to pay in addition to the compulsory excess that has to be paid in the event of a claim.
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