When it comes to van insurance, there are two main types: private and commercial. Each one has its benefits and cover options, so it’s important to understand the difference before you make a decision.
At one sure insurance, they will offer all kinds of van insurance and specialise in it, allowing the policyholder a choice of options to get just the right cover that they need. Below, we shall consider what there is to think of to be correctly insured.
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Private Van Insurance
Private van insurance is for when you use your van for personal reasons, like driving to the grocery store or taking your kids to school. It can be useful to have the extra space in the back of the van for shopping too as well as for transporting goods to the rubbish tip after DIY jobs and home renovations. A small light van can work out cost-effective to insure when you have a practical use for it.
A van will more closely compare with the estate car, which is better at transporting items about than a hatchback or saloon. These items might be personal and not related to business and just being transported to relatives. They can be insured on the “all risks” section of a household insurance policy as possessions you want to be covered while they are away from your home.
Do not forget to purchase Class I motor insurance for business use if you are using your van for any kind of work that you are getting paid for. Helping a friend out is okay because this can be classed as social, domestic, and pleasure.
Commercial Van Insurance
Commercial van insurance is for when you use your van predominantly for business purposes. This type of insurance is more expensive, but it also offers more protection for various types of businesses and the goods they transport. Businesses can also purchase fleet insurance when they have many vehicles to insure at the same time.
It is good to know that we can have a van without having to make it a commercial thing but generally that is what most vans will be used for. When we own a van we need to ensure that we are clear about what we can do with our vehicle before it will be classed as business use. Even a car can require insurance for business use if it is being driven between workplaces rather than just from home to one permanent workplace.
Types of Businesses Needing Commerical Options
The kinds of businesses that will require insurance beyond just road risks and perhaps for larger vans include:
- Couriers
- Delivery companies
- Taxi firms
- Shops or Restaurants
Couriers will not only want cover for any other motorists they might hit during business hours but also require cover for their van and the goods they are carrying. These can add up to quite a value if they are just staring their round.
Delivery companies will make use of vans to deliver goods to retailers or wholesalers. The larger capacity van will invariably cost more to insure because of its greater engine size and the insurance risk of what it is carrying.
Taxi firms carrying a greater volume of passengers may use vans instead of cars. They will need to be insured as vans as well in the capacity of carrying passengers in a business way.
Shops may have larger items to deliver to their customers as all part of the service, whereas perhaps restaurants might manage with smaller vans to deliver smaller orders, to be on time while the food is warm, although vans can be heated and refrigerated.
If you’re using your van for business purposes to do with a specific occupation such as a courier, then you’ll need commercial van insurance. This type of insurance is designed to cover you for any accidents or damage that may occur while you’re using your van for work. Also, for the goods being carried that could be damaged or stolen. There are different classes of business use beyond Class I to consider, which a broker can advise about.
However, if you’re just using your van for private purposes, then you may be able to get away with Class I van insurance. This is the cheaper option, and it covers you for any accidents or damage that may occur while your van is being used privately.
So, which type of van insurance should you choose? Well, that depends on how you plan to use your van. If you’re not sure which option is best for you, then always speak to an insurance broker – they’ll be able to help you choose the right type of coverage for your needs.
Hopefully, the above has provided everyone with a better understanding of what constitutes van insurance for business purposes. For a business with a van, it is clearer than when a private individual owns one. If you are unsure about business use in any circumstances, always consult an insurance professional or do your research via the insurance websites that can be found online.
