Commercial Van Insurance Explained


There are over four million commercial vehicles on Britain’s roads according to The Society of Motor Manufacturers and Traders (SMMT). With each and every one of these vehicles legally requiring protection, the insurance industry has a lot to deal with.

While getting a quote and taking out a commercial vehicle policy is similar to regular car insurance in some ways, there are certain aspects that differ. So, here are the main points explained:

Business or private

Unless you use your van strictly for personal travel, you will need to take out a commercial vehicle insurance policy, even if this involves simply driving to your place of work. A regular car insurance policy will cover social, domestic, pleasure and commuting, however, van owners do not have these categories. There are three types of business van insurance:

  • Carriage of own goods – This covers your belongings, whether they are tools of the trade or personal items. This policy is for those who simply commute, or professionals who need their van to carry out a trade.
  • Carriage of goods for hire or reward – This applies to delivery jobs, particularly occupations that require multi drops at various destinations.
  • Haulage – This is more concerned with fixed deliveries to regular clients and locations.

These classifications are in addition to the usual options like comprehensive and third party fire and theft insurance. For the delivery and haulage options, the policy will cover accidents and incidents. However, additional insurance for the goods in transit may be required.

Type of van

As with regular car insurance policies, the type of van you drive will determine the price you pay. The Association of British Insurers gives a group rating based on factors including:

  • Vehicle value
  • How much damage could be done to the vehicle
  • How much repairs would cost, which includes replacement parts
  • Performance, including acceleration and top speed
  • Security systems installed such as alarms, immobilisers and trackers.

How a quote is calculated

In addition to the van insurance group, other factors specific to commercial vehicles will determine your policy premium.

  • Claims history on any vehicle – This is a requirement for all insurance companies, even if you weren’t to blame for previous incidents. If you have a no claims bonus on another vehicle, you may be able to mirror this with your van policy and get a lower premium.
  • Convictions – Regardless of what car or van you were driving at the time, this will apply to any quote you receive.
  • Mileage – The amount of miles you cover in a year is likely to be more in a commercial vehicle.
  • Occupation – A quote for a delivery driver will be different to that of a carpenter, for example.
  • Location – If you leave your van at secure company premises, this may mean a lower premium compared to your home.

If you are still confused by commercial van insurance, it is a good idea to get in touch with an established provider. Van insurance from The Co-operative Insurance is a well-respected and trusted option.

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