Many small businesses throughout the UK rely on at least one van in order to perform deliveries and keep inventory in stock. If a commercial van is involved in an accident or needs maintenance work, the cost of repairs is not only likely to be high, but the resulting downtime could lead to a significant loss of revenue for the business. Therefore, any business owner that uses a van for his commercial operations will need to take out commercial van insurance. Commercial van insurance not only provides financial security against costly repairs, it is also mandatory throughout the UK. This article will look at what types of commercial van insurance are available, and also at how business owners can get the best commercial van insurance deal.
Types of Commercial Van Insurance
Commercial van insurance is available as third party, third party fire and theft, and comprehensive. Third party, the most basic type, will only provide cover if the van causes injury or damage to a person or property that is not named on the insurance policy. This policy is the minimum that is legally required, but it is important for owners to realize that it will not provide cover to the vehicle itself. The second level in van insurance is third party fire and theft. This type of policy covers everything that third party insurance covers, but it will also, as its name suggests, cover the insured vehicle if it is stolen or damaged by fire. Finally, comprehensive van insurance offers the largest amount of cover, and will pay out for the cost of most repairs. Comprehensive insurance often comes with a number of extras, as well, such as emergency assistance and a courtesy replacement van in case the insured van is out of service for a period of time.
Finding the Best Deal
While it is fairly easy to find the cheapest van insurance deal by simply comparing the offers using any number of online comparison calculators, business owners should be wary of simply choosing the insurance policy that offers the lowest premiums. The key consideration should be value rather than cost. A policy that offers low premiums but inadequate cover will likely prove to be a costly mistake when the owner ends up having to pay for repairs with his own money. As detailed above, there are three main types of van insurance on the market. While third party and third party fire and theft are often the cheapest policies, for a business that is highly reliant on its vans then comprehensive cover should be considered a necessity. Also, businesses that have a fleet of vans may want to consider getting fleet van insurance, which will likely prove to be more cost effective than insuring each van individually. Businesses with a fleet of vans also need to be aware that any commercial van that is owned needs to be insured, even if one or two of those vans are rarely used. Therefore, fleet van insurance will not only keep costs low, but it will also help make sure a business is operating within the law. Also, depending on the nature of the business, some vans may only be driven by certain people, while other vans may have a fluctuating number of drivers. For business owners that know precisely who will be driving the commercial van that is insured then adding a named driver to the policy will help lower premiums. On the other hand, opting for a policy that will provide cover for any driver will likely cost more but such a policy will at least offer peace of mind. Finally, other important considerations include the level of breakdown cover needed, any age restrictions imposed on the drivers, and whether the van can be taken abroad.
Because commercial vans are so important for maintaining a profitable business, commercial van insurance is a necessity for many business owners. While commercial van insurance can be costly, by deciding on what sort of cover is needed beforehand owners will be able to find the policy that provides the best value. Careful research into the various commercial van insurance policies available will help make sure a business can keep running and stay profitable even when one of its vans is in need of repairs.
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