The class of use you choose influences how you drive your van and the risks associated with driving it.
Let's look into each class of use in detail, looking into how each could impact your policy.
If you only use your van for social, domestic and pleasure purposes, then a social only policy could be for you. This sort of van cover is often referred to as private van insurance.
General day-to-day use, like visiting family and friends and shopping, sits within this class.
Typical hobbies that people use their vans for include surfing, golf and camping. Vans are also great for getting away from it all, taking a road trip or, simply going off on holiday.
Choosing a social only van insurance policy means you’re not allowed to use your van for anything to do with business or work. This is including commuting.
Social use and commuting
Social use and commuting van insurance covers everything that comes under the social only category. But you should also be able to use your van to drive to and from your workplace.
It could be a good policy if you’re someone who takes their van on camping trips, but also uses it to commute. With this sort of policy, you still can’t use your van for anything to do with your business.
The commuting part of the cover is defined as commuting to and from a regular place of work.
If your job takes you to many sites, this class of use likely isn’t for you. It's designed for those who drive to and from the same office every day, or to the train station before heading to work.
With commuting comes increased time on the road, especially at peak hours of traffic. This makes it a bigger risk to an insurer, so you might see extra costs to your policy.
Carriage of own goods
If you use your van for carrying business related goods, tools or equipment, then you should choose business use.
This could be the right cover for someone in the building trade who uses a van to transport their own tools and equipment to work.
This could also apply if you’re a shopkeeper or sole trader, like a florist. This class of use would also include driving to many places as part of your job. This could be a shop, a client’s building or a warehouse.
Even if the tools belong to your employer, you still likely need to choose this option.
This doesn’t mean the tools or goods themselves that you carry in your van are covered as standard. For that, you might need extra tool cover.
Carriage of own goods for hire or reward
This cover could be for you if you're delivering goods belonging to other people in your van, in exchange for money.
For example, this could apply if you're a taxi driver or a courier.
This could be more expensive to insure, as you're likely to be on the road a fair bit and have equipment thieves might target.
This type of commercial van insurance policy is suited to delivery drivers and couriers.
It provides cover when other people’s goods are being carried for payment and when many drop-offs tend to be needed.
It’s a legal requirement for those providing courier services to have a basic level of courier insurance in place.
This should protect against damage to other people and their property when deliveries are being made.
Courier van insurance policies usually don’t include goods in transit insurance. This typically covers against loss, theft and damage to your cargo.
The added value of all those goods in your van makes for a expensive claim should there be an incident. Combined with the fact that you’re likely to spend most of your time driving, haulage cover could be one of the more expensive options to have.
Optional extras for van insurance
You can also choose from optional extras to give added protection:
Loss or damage to attached trailers
Provides cover for your trailers.
This could pay your legal costs if you ever have to go to court because of an accident that wasn’t your fault.
Adding breakdown cover gives you peace of mind. It should make it quicker and easier to get back on the road if you do breakdown.
Goods in transit cover
This covers your cargo against loss, theft and damage. You need to ensure that the level of cover offered is high enough to meet the value of the goods you carry.
Tools in transit
This optional extra provides cover for any tools in your van against loss, theft or damage.
Is business use more expensive than social use only?
Carriage of goods for hire or reward and haulage insurance tend to cost more than social only van insurance. But, carriage of own goods business van insurance can sometimes work out cheaper than van insurance for social only use.
Insurers use complicated algorithms to give prices based on the information you enter when getting a quote.
It’s unlikely that you only use your van for social use only if you’re a builder, which could be a reason why these policies could be pricier.
Some people assume that a social only policy is cheaper and may think that lying about the class of use won’t matter. The truth is, it could invalidate your insurance policy and end up costing you more.
What happens if I lie about how I use my van on my insurance policy?
Giving your van insurer false information could backfire:
It could invalidate your cover, meaning if you had to make a claim as a result of an accident you won’t be insured. Things could get very pricey!
Social and commuting
If the insurer discovers you’ve misled them, they have the right to cancel the policy or charge you the correct policy price.
If your insurer cancels your policy, you should declare this on any future applications. This could increase the van insurance prices you’re quoted.
There are other ways to bring down the cost of your van insurance which are legitimate: