Van Insurance

If you are looking for a decent van insurance quote then you should be in luck. The market is changing fast this year with dozens of new insurance companies suddenly trying to win van drivers’ business. All the big players like Norwich Union, the RAC, AA and most of the big banks are still keen to insure van drivers. Other well established companies like Swinton, Cornhill, Endsleigh, NFU Mutual and Bennetts are also vying for new custom. Meanwhile a host of newer insurance names like Budget, More Than, Tesco and even Saga are shaking things up even more – often bringing premiums down fast in the process. The only problem with the mini-boom in insurance choices is that it can be hard to pick between them. Experts always say that no two policies will ever be exactly the same, and that’s particularly true when new companies are flooding into a market.

So what should you do if you want a good quote for your van or vans this year? The first thing is to feel good about the vehicle you drive. Small business advisers say many van owners accept the first (expensive) insurance quote they are offered because they swallow the ‘white van man’ cliché and assume that they will be treated as high risk motorists.

But the white van man stereotype just doesn’t ring true. The AA was the first to disprove it, back in 2003. It did the most definitive piece of research yet into different road users and found out that van drivers were pretty much the safest on the road. It said the average van driver has a clean driving licence and goes four and a half years without making a claim. Just 17 per cent of van drivers claim on their motor policies each year, the AA found, compared to 25 per cent of car drivers. More than three years on and the AA says the story is still the same.

Other recent surveys confirm that van drivers are still better customers than car owners. Tesco’s new insurance arm says one in five van drivers have been on an advanced driving course or have had some further driver training, for example. More importantly the insurer says van drivers also make fewer and smaller claims than car owners.

When you think about it, the reasons for the low claims rate are obvious. Self-employed people who crash or damage a van can lose their livelihood as well as their wheels until it is back on the road. So they’ve got more reason than most to stay safe. Insurers say van owners are also more likely to look after their vehicles to make sure they can get to jobs on time. If you advertise on the side of your van you’re also likely to want it to look good to win more business. It all means van owners shouldn’t put up with expensive insurance quotes or hefty penalties in their policy terms and conditions.

Getting the best policy will take a bit of time, however. Drivers do need to put an hour or so aside for some serious shopping around, though fortunately you can do most of it online at a time that suits you. Most of the big insurance names already mentioned give no obligation quotes on their websites. Several, like the AA, Budget, Swinton and Endsleigh will do some of this shopping around for you. They find the best quotes from a panel of other insurers so the more of those you contact the more of the market you are covering. But the direct players like Chuchill and Tesco are worth checking for comparison purposes as well. Some shop-around websites including have also added van insurance facilities this year and are worth a look. The comparison sites show that an hour or so comparing policies is time well spent – there is often several hundred pounds between the cheapest and most expensive quotes. Save that money and you can spend it on advertising to win some extra business for the year ahead.

Like most insurance it’s important to remember that in some cases you do only get what you pay for though – the lowest quotes may not offer you all the cover you need. So check the policy terms carefully before signing up.

It is also worth remembering that for all the positive news about van drivers and insurance the outlook can be pretty tough if things go wrong. After surveying the market insurer More Than, for example, has been highlighting the number of vans that are damaged or broken into each year. It says that however clear you make it that tools aren’t left in your van overnight you can still be a target from opportunistic thieves. So you need a policy which will repair any damage and insurance that will hopefully replace anything that has been lost as soon as possible if you are a victim.

The AA is also making the point that van drivers tend to work their vehicles a lot harder than car owners. That’s why vans are involved in around 10 per cent more breakdown cases than cars. Opting not to have a good roadside repair policy can be a false economy, especially if your van is even taken over to Europe where it can be out of commission for a lot longer if you need to pay to bring it back yourself after an accident or breakdown.

Finally – just because you got a great quote last year doesn’t mean you should stick to your current insurer when your renewal date comes up. Premiums can often soar in a second year and you can save by shopping around yet again and starting a new policy with a rival company.


Neil Simpson is a former Personal Finance Journalist of the Year and writes regularly on insurance and property issues for the Mail on Sunday, City AM newspaper and many other publications.