Guide to buying Van Insurance in the UK.

A comprehensive guide to buying van insurance in the UK

The plethora of insurance providers in the UK market means that what was once a simple task is now an onerous one. Shopping around for van insurance, especially when the vehicle is an essential part of your business, is nothing short of a headache

Besides being confusing, the jargon used in many policies is merely doublespeak and many people have found that although their van is covered, they actually have nothing to show for it.

Don’t accept the highest quote

As a consumer, you have to be aware of certain minimum requirements that are to be fulfilled before taking out insurance on your van. Do not fall into the usual consumer trap and accept the highest quote received online. It is noted that over the years, van owners have become resigned to a theory that their vehicle is accident prone.

This is simply not true. The AA found in a survey in 2003 that van owners were least likely to put in insurance claims on their vans. Only about 17 percent of the van drivers surveyed returned to their insurers to claim on their policies.

What type of van insurance do you require?

There are two types of van insurance policies that consumers can avail. One is a short-term insurance policy when you have "borrowed" or are driving a van that is owned by a third person. Temporary van insurance is ideally suited for people who will lend their vans out to friends or overseas visitors.

Also if you have just brought your van and need a short-term coverage before buying a comprehensive van insurance policy, a temporary coverage is the best way to go about it. Please note that drivers need to be over 24 years of age before applying for this coverage.

The other type of insurance coverage is of course the permanent and comprehensive one that covers every aspect of your van and protects the driver as well.

Before choosing any insurer, please check the Financial Services Authority Register to ensure that your provider is in their books.

How do I go about choosing the right van insurance provider?

Be prepared to spend some time choosing the right policy.

There are three types of van insurance available in the UK.

1) Third Party Only (TPO) - This kind of policy covers any claims made by the third party involved in the incident. It does not provide any cover for damage suffered by your own van. Such policies are generally not advised nor brought by consumers. Sometimes large business firms like courier companies, who have a fleet of vans at their disposal, may opt for this type of coverage.

2) Third Party Fire & Theft (TPFT) - In addition to covering claims made by third parties, this policy also covers theft of your van or even damage caused by fire.

3) Comprehensive (ComP) - This policy is generally opted for as all the above conditions are met and damage to your own van is also covered.

Some insurance companies give a lot of importance to a fault claim and a non-fault claim. Simply spoken, a non-fault claim is one where the insurer can claim the costs from a third party and hence the burden on your own pocket will be lighter.

The first thing an insurance provider will check out is the annual mileage. This is a key component of any coverage as it indicates the amount of time your van spends on the roads. Needless to say the greater the mileage, the greater is the risk of theft, accident or any damage to your van. Naturally you may expect the premiums to be on the high end as well.

Van insurance is basically a cover that ensures that you as the consumer do not get trapped under unnecessary charges in the event of an accident or other untoward events like theft of inadvertent damage caused to other vehicles as by rear-ending.

One way to lessen your quote is to get an immobilizer fitted to your van. While it does not protect from theft, it ensures that the vandal will not drive away your van. Insurance companies generally look for immobilizers in vans before quoting a price.

Do I buy van insurance directly or go to a broker?

Buying van insurance directly from a provider may be risky in certain cases especially when you are pressed for time. An insurance broker has access to many companies and is in a position to advise you about the best policy for you van. So a broker may be your best friend when it comes to protecting your van as well as yourself.

Finally before getting van insurance, make sure you read the policy provided by the insurer to understand the following as outlined by the FSA:

a) What the insurance policy actually covers;
b) More importantly what it doesn't cover;
c) Be aware of any limits or restrictions
d) Other distinct features provided by the insurer.