Van insurance is a legal requirement if you're going to drive on the road, and although you may begrudge paying for a policy, the right cover will offer peace of mind that both you and your vehicle are protected.
The good news is, with so many small business vans on our roads, van insurance is now a very competitive market, which means not only improved choice, but also lower prices.
When purchasing van insurance, your first decision is whether to opt for fully comprehensive cover, third party fire and theft, or third party only, but once you've picked the right level for your circumstances, there are then a whole host of extras you could consider.
Legal assistance
You may want to purchase a policy that includes legal assistance to cover legal costs that could follow an accident.
“A legal assistance plan will cover £50,000 legal costs to recover out of pocket expenses,” says Carmel McCarthy from insurer More Than. “It will also give you immediate confidential access by phone to a team of legal consultants who will give you advice and guidance on any motor-related legal matter.”
Breakdown cover
Breakdown cover will assist in getting your van back on the road - or to a garage if you breakdown.
Options include “recovery” if your van cannot be fixed locally, “home start” if your van breaks down at home, and “onward travel,” which will provide you with overnight accommodation or reasonable onward travel if you breakdown away from home and your van cannot be repaired swiftly. See your breakdown questions answered for more information. can this open in a new window pls.
Tool cover
Comprehensive van insurance is likely to cover you up to a certain amount for tools carried in your van, but if you have a lower level of van cover, such as third party - or if your tools are particularly valuable - you'll need to take out additional cover.
No-claims bonus protection
If you have accrued a number of years with no claims, some insurers will allow you to pay a small additional premium to protect this no-claims bonus - enabling you to make one or more claims within a set time without losing any of your discount. See protecting your no claims bonus - is it worth it? can this open in a new window pls.
Courtesy vehicles
If your van is involved in an accident and is off the road being repaired, your business could lose out, so it's worth finding out if your policy provides a replacement vehicle to keep you on the road.
European cover
If you're planning to drive your vehicle abroad at any stage, you may want to consider a policy offering European cover, in case you breakdown overseas.
Before signing up, check which European countries are covered, and bear in mind that some insurers will allow you to buy full European cover on a per-trip basis.
New vehicle cover
If you have bought a new van, most insurance providers will give “new vehicle cover” if the van has been stolen and not recovered, or if it has been damaged and the cost of repair is significant, according to Michael Powell from financial analyst Defaqto.
“Some policies will, for example, replace the vehicle with a brand new one if the repair costs are 60 per cent of the manufacturer's list price,” he says. “But you need to check the policy cover, as some will only give cover for vehicles up to six months old - while others offer this cover up to 12 months.”
Read your policy documents
Further to these, other features you may want to consider include breakdown cover, windscreen cover and personal accident cover.
The key thing to remember is that policies can differ, making it crucial to check your documents to see what is included as standard - and which optional extras are available.
