Understanding The Difference Between Van And Car Insurance

A lot of people think that van insurance and car insurance have either similar or exactly the same policies. Well, that’s not the case. Although they do have some things in common, they are actually pretty different. The key difference is that overall, the costs of van insurance will normally work out more expensive than standard car insurance. This is to be expected as van use is more for business use.  Business use like providing a courier service poses higher risk and speciality hire and reward van insurance is required. On the other hand, cars are used more extensively for leisure only and this poses less of a risk.  

For example, one similarity is that the two policies involve mandatory driver and vehicle protection. However, as we stated previously, there are a couple of differences between these insurances. We’ve conducted research on the main differences to help you understand in more detail, especially if you’re a new driver. Read on to discover the things we found out.

What Is The Difference Between Van And Car Insurance?

Van And Car Insurance Usage Police And Premiums

Those who drive vans can also work as deliverers, laborers, florists, contractors, or sole traders. If you are a van driver, then you will have to decide and pick which class of use is perfect for you and your needs, as well as to determine who is going to drive your vehicle.

Is it more expensive to insure your vehicle for business use? The answer is yes. Why is that? Well, that’s because the price of insurance depends on different factors, including the way you’ll be utilizing the vehicle, as well as the mileage. 

Therefore, you first have to choose a certain policy and then see what it provides and how it is going to affect the insurance premium you are currently paying. Before they determine your premium, the insurers will first take into consideration the type of driving you are practicing.

For instance, if you use your vehicle for commercial purposes, then it means that you’ll be traveling long distances frequently, which means that you’ll be oftentimes distracted or tired. More importantly, at times, you will find yourself in areas you haven’t seen before. Further, all these factors can potentially cause accidents.

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Vehicle Contents

Now, when insuring an automobile you do not need to cover belongings and contents that are placed inside your vehicle, especially if you employ it for domestic or social purposes. Well, that’s not the case with van insurance, and here’s why. Most van owners are going to keep their tools and many other types of equipment and other stuff inside their vans.

It’s worth mentioning that most of these items can be very valuable and expensive and it’s not quite easy for anyone to obtain them, hence it’s of huge relevance for these things to be covered by the insurance. 

What Else Needs To Be Known?

Insurance Groups

When purchasing car insurance you have to provide insurers with various information, concerning the model, size of the engine, or in case you’ve made any changes to your vehicle.

Now, as far as the commercial van is concerned, you can find different shapes and sizes of it and all of this information must be taken into account, along with the capacity which can sometimes vary. Every single aspect that we listed has a huge impact on the value of your van.

Tool Cover For Vans

Unfortunately, van drivers are frequently dealing with theft, so once it occurs, a plethora of their tools are being stolen. That’s why if you own a van, you should opt for specialist van insurance that is going to cover the expenses of everything that’s been stolen.

Many car insurance policies are going to cover you for theft too, but this typically refers to the theft of your vehicle. As we already stated, vans are packed with pricey tools, packages, and equipment, therefore, it’s of huge importance to have a policy that involves tool cover. So if your tools were stolen or ruined in any way, it’s highly likely, your insurance is going to cover you.

Vehicle Specifications

When you are calculating the premium for insurance, both van and auto policies are going to consider the specifications of your vehicle. When it comes to car insurance this means the model of your automobile, the size of the engine, as well any modifications that were being made.

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When it comes to insurance, it is going to include all of these things that we just mentioned, along with the size and the shape of the van, as well as its capacity. Bigger vans usually have a greater capacity, as well as a larger engine. This just goes to show that you will have to set aside more money than you normally would for a smaller model. 

Other Specialist Types Of Cover

Now, if you are an independent contractor, you should maybe consider covering your own equipment in case an accident happens. For this, you can always add Tool Cover to your policy.

Namely, a lot of vans transport the most valuable and fragile cargo of all people. For instance, if you drive a minibus, traditional car insurance is not going to be good enough for you. On the other hand, if the vehicle you are using is able to transport between ten and sixteen passengers, you will need to have specialist minibus insurance to cover both you as well as the passengers in case any accident occurs.

Types Of Business Van Insurance

There are three sorts of this type of insurance:

  1. Carriage of Own Good – Namely, this policy usually covers the van when it is carrying your goods for different business reasons. The best example of it is a sole trader’s tools. 
  2. Carriage of Good for Hire and Reward- This policy covers the use of this vehicle when you are driving other people or items that do not belong to your, for business purposes, and in return, you expect a payment
  3. Courier & Haulage – This one is similar to the Carriage of Good for Hire and Reward but the only thing that is different is the fact that it covers the transporting of things over very long distances. Exporting and importing goods is the best example of it.

As you can see there are some differences between these types of insurances. They are not that huge, but still, you should take them into consideration when thinking of obtaining any of them.

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