Are you covered?
It is thought that between 25 and 33% of all road accidents involve a van driver that was ‘at work’ at the time.
A police study revealed that over 47,000 light goods vehicles are stolen every year in the UK. This translates to £152 million in lost assets. Therefore, there is no better reason for getting van insurance.
There are many types of insurance policies to cover your van. These range from fire and theft to third party. The minimum level of cover required by law is third party....
Fire and Theft – This is normally bundled with third party insurance but can be taken out. It means if you lose your van through no fault of your own through theft or a fire, you will get its market value back. Even if you are driving an old banger for local deliveries, it is still worth paying the few extra pounds for this basic policy.
Replacement vehicle - If you rely on your van to keep your company going, this type of cover is worth a look. You will get another vehicle while yours is being repaired or replaced. This time period could be weeks, so it could save a small fortune in rental expenses.
Goods in transit – This is of upmost important if your business van is carrying thousands of pounds of stock around. A single theft could ruin a business, so goods in transit insurance will cover the value of goods on board.
Legal expenses – This is quite a cheap extra. For that little bit more cash your business will be represented in the event of most legal action involving a company vehicle. It is estimated that one in three accidents involves a firm vehicle, so think of the legal expense insurance as peace of mind, if your company gets dragged into an ugly legal battle.
Breakdown – Don’t break out when worrying about van insurance, just get breakdown cover. The incentive for breakdown cover is fairly simple – it could cost you more than an annual breakdown policy just to get a tow off a motorway. Check out for the insurance firms who bundle it with motor insurance, this could make it a little cheaper, so you could be chirpier.
Things to checkout on the check list
When purchasing commercial insurance cover, there are several golden rules to follow...
Coverage of policy – Choose a policy that dictates the kind of work your business does. A printer with a van load of client’s work would need ‘carriage of goods for hire and reward’, whereas a builder carrying essential tools would only need coverage for ‘carriage of own goods.’
Excess – Expect to pay anything from £50-£500 for the first part of a claim. The bigger the excess, the smaller your policy will cost, but the less money you will get if something happens.
No claims discount – You can build this policy just like your personal car cover. You can also protect this policy once it is built up. When your business grows and needs more vans to be protected, the chances of insurance claims will shoot up.
Additional drivers – This is worth a look if your firm needs the flexibility of adding drivers regularly. Some policies cover all employees automatically, although you may need to send your details off. Remember, you must keep a cover of each employee’s driving licence.
Limit of indemnity – This is a limit to what your insurer will pay out for each accident, and is normally set at £5million. As a responsible company owner, it is advisable to pay that little bit more; to increase this is £10million.
Driving outside the UK – Check these rules before you make the trip. With some policies you have to notify the insurer before the vehicle leaves the country.
Van-tastic – The best of the rest
HGV vehicles require commercial HGV insurance, which is available from most insurers. You can get such cover for individual vehicles or for fleets. HGV insurance may include container insurance, protection of goods and public liability. Optional add-ons can be glass cover and breakdown cover.
Fleet Insurance – If you own more than five vehicles, a fleet policy is best. The claims experience of your fleet will provide the main rating factor in assessing the cost of cover.