Your van is the backbone that keeps your business up and running. When considering insuring the vehicle, you need to ensure that you’re covered by an insurance company that fits your business needs, because the very last thing you want when you put in a claim is to find out that you do not have adequate cover.
Below is a list of questions and facts that you need to ask or know about van insurance (although it is also true for cars or even bikes).
Van insurance is compulsory – just like insuring your car, the law requires you insure your van. Informing the insurance companies about past convictions, such as speeding fines, is essential. If you can’t remember, check the Government’s licence information site. It is also worth informing them of up to date claims information, as this could influence prices. All is explained below.
Step no. 1
Firstly, choose a reputable company, and carefully study the policies on offer to ensure they cover your insurance needs. Definitely, an estimation of your van’s value is required and you would need to declare modifications, security devices, whether the van is an import vehicle, whether you need trailer cover and many other issues describing the situation of the individual van owner.
Then you would need to decide what type of cover you require, fully comprehensive cover, third party fire and theft, or a third party only policy. You would also need to declare how many years’ no claims bonus you have and to give the details all of named drivers you need on the van policy. Ask for a policy covering all or some of your employees who drive your business vehicle with Heart.
Some policies only cover drivers who are named on the policy. In this case, you would need to call the insurance company and add new drivers as and when they are employed by your company, otherwise, you may not be covered in case of an accident. Some insurers allow all of your drivers to be covered as long as they have your written permission to operate the vehicle.
Step no. 2
The class of insurance you choose is of critical importance plus there are options for social class only, carriage of own goods class, carriage of goods for hire or reward class, and haulage class. Goods in transit policies are exactly what they say, they protect drivers who use their van for transporting materials, tools or goods due for the purpose of work. It’s basically a higher standard of contents cover which exclusively covers the contents of your van. It will help you to recover costs should the van’s contents get lost, stolen or damaged.
Step no. 3
You need to be aware that – in contrast to other vehicle insurance – van insurance doesn’t have a ‘social, domestic, pleasure and commuting’ classification. If you commute to your place of work in a van you need a commercial or business van policy as opposed to a private one.
Step no. 4
To insure a pick-up you will need a van policy. Full-time, part-time or contract claims adjusters can affect turnaround time. If part-time or contract adjusters are used to handle claims the process may be slowed down. Make sure the insurance company clarifies this, to ensure speedy settlement.
It is important to ask whether your employees’ personal vehicles are covered if they get into an accident while travelling on business? What about rental cars? In most cases, rental cars are insured through the rental company. Employee vehicles are not generally covered under a standard business car insurance policy. So if the vehicle was damaged in an accident, you could be liable. If employees are expected to do business errands in their personal vehicles, consider adding them to your policy.
Step no. 5
Is there a payment plan in place? Or do you have to pay my annual premium up front? Well, it’s up to you, either payment monthly or annually. Many insurance companies offer slightly cheaper premiums for paying your bill for 12 months in advance. Paying upfront over the course of a year often works out less expensive than if you’d paid your premiums monthly.
Of course, not everyone can afford to pay for the full twelve months of insurance upfront. Even though they’re aware that paying annually will save them money, many drivers will take the monthly option in order to keep the household budget and cash-flow under control. Unfortunately, some insurance companies can add as much as 10.75% to the premium amount if you switch to monthly payments. The upside of paying your car insurance monthly means your household cash-flow isn’t hit with an unaffordable annual bill, the downside is that you pay 13 months’ worth of premiums each year.
No matter whether you decide to pay your premiums monthly or annually, it’s still important to shop around to get the best quote. Different insurance companies will offer a variety of levels of cover for a range of difference prices.
Most insurance companies offer the option of a loan van if your own van is involved in an accident, but this generally comes at a price. You need to work out whether you could cope with the day-to-day running of your business without the use of a van. If not, then it is well worth the extra expense. The cover is generally for a like-for-like vehicle. Check it out; you probably can’t effectively fetch and carry in a 2 door small car. Compare the extra cost to the rental costs of your class of van, and while you’re at it, check out the length of time for which you qualify for the loan van. In most cases it will be for one calendar month.
Be sure you compare the options available and work out exactly what you’re paying before you sign up. Then do the arithmetic and see which payment options work best for your budget. You’ll be surprised by how much you can save. Choosing the right insurance for your van is vital, same as it is knowing everything about van taxes and such.
