Van Insurance Buyers' Guide Page 2: Rating Factors

• Guides
• Published: 14 Oct 2008 in Motoring and Van Insurance

Rating Factors: Why Van Insurance Quotes Vary

In deciding the cost of a van insurance policy, insurance companies consider a range of rating factors. The insurers, however, will use these rating factors in different ways, which explains the difference in prices. Therefore it’s essential to compare quotes from as many van insurance providers as possible for the best chance of finding a great deal.

Type of van

The make and model of your van will affect the price you pay to insure it, as will its engine size and value. Vehicle weight is also an important rating factor. Small van insurance will be cheaper than insurance for a larger transit van as the smaller van will be easier to control: meaning that fewer accidents should occur.

Driver details

All drivers will obviously need to hold valid driving licenses. It’ll be harder to find cheap van insurance for any drivers who have been refused insurance in the past, or who have had special terms imposed on a policy. An ‘any driver’ policy will always cost more, so consider carefully who you want to insure to drive your van.

Age will also influence how cheap a van insurance quote can be. A young driver, particularly 25 and under, will be thought of as a higher risk as they will probably have less driving experience.

Van uses

Couriers and haulage contractors will usually need specialist insurance providers to find cheap van insurance, as do taxi drivers. Some brokers won’t be able to give you a quote if you use your van to carry hazardous or toxic materials due to the increased risk that comes with this kind of cargo.

If you are using your van for both private and business purposes you must inform your insurer. The details they need include:

• Any goods that you transport
• The drivers to be covered
• The duration of use

You may be able to extend an existing van insurance policy to cover occasional business use. If your van is used predominantly for business purposes or transporting goods, or is actually owned by a company, you will probably need a specific commercial vehicle policy.

If you own more than five vehicles, a fleet policy could be arranged and be cheaper overall. The claims experience of your fleet will provide the main rating factor in assessing the cost of the policy.

Van security

Enhanced security on a van such as an alarm, an immobiliser or a tracker means that it is less likely to be stolen or broken into; so insurance providers are more likely to offer you a cheaper van insurance quote.

Van location

People living in cities are considered more likely to have accidents, as there are more hazards around. It is quite common, therefore, that a van insurance quote for someone who lives in a city will be higher than for someone living in a more rural location. In addition, vehicle thefts or break-ins are more likely in certain towns and cities.

Van insurance no-claims bonus

For each year that you insure your van without making a claim on your policy, you receive a no-claims bonus. This can be redeemed as a discount on your next year’s van insurance premium.

Voluntary excess on van insurance

Whilst most van insurance policies will have a compulsory excess, you can also agree to take a voluntary excess on top of the compulsory excess amount. A voluntary excess can often reduce the cost of your van insurance policy, although you will have a larger amount to pay in the event of you making a claim. For more information about voluntary excesses, read our Excess Factor article.

Confused.com asks the relevant questions needed to ensure that all the rating factors are taken into account. This allows us to provide you with an accurate cost for your policy. Furthermore, you won’t pay a penny more for buying through Confused.com than you would from going to the insurance provider direct.

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