7 Tips to Cheaper Van Insurance - The Malvern Observer

7 Tips to Cheaper Van Insurance

Malvern Editorial 19th Jun, 2024   0

As a van owner, finding affordable insurance is key to keeping your overall driving costs down. While van insurance tends to be more expensive than car insurance due to factors like larger size, more powerful engines, and higher theft risk, there are several ways you can reduce your premiums. Here are 7 top tips to help you get cheaper van insurance:

1. Choose the right level of cover

2. Increase your voluntary excess

3. Pay annually instead of monthly




4. Improve your van’s security

5. Build up a no claims bonus


6. Consider a “black box” telematics policy

7. Shop around and compare quotes

1.Choose the Right Level of Cover

When insuring your van, you have three main levels of cover to choose from:

• Third party only (TPO) – the minimum legal requirement, this covers injury or damage you cause to other people and their property. It’s the cheapest option but offers the least protection.

• Third party, fire and theft (TPFT) – includes TPO and also covers your van if it’s stolen or damaged by fire.

• Comprehensive – the highest level of cover, this includes TPFT and also covers damage to your own van in an accident, even if it was your fault.

While comprehensive cover is the most expensive, it can sometimes work out cheaper than lower levels of cover. This is because higher-risk drivers tend to go for TPO or TPFT cover, so insurers price these policies higher on average. Always compare quotes across different cover levels to find the best deal. Zego insurance offers business van flexible cover to suit your needs.

2.Increase Your Voluntary Excess

Your excess is the amount you agree to pay towards any claim before the insurer covers the rest. It’s usually made up of a compulsory amount set by the insurer and a voluntary amount you choose.

By increasing your voluntary excess, you’re agreeing to cover a larger part of the cost if you need to claim. This makes you less risky to insure, so insurers typically lower your premium in return. Just make sure you choose an excess you can comfortably afford to pay if necessary.

3.Pay Annually Instead of Monthly

While paying for insurance in monthly instalments helps spread the cost, it usually works out more expensive overall. This is because insurers essentially loan you the money and charge interest, just like any other type of finance.

If you can afford to pay your premium in one lump sum, you’ll usually get a cheaper price. Plus, you won’t need to worry about remembering payments each month or getting charged for missed instalments. Zego Insurance lets you choose between flexible monthly or annual payments for your van cover.

4.Improve Your Van’s Security

Vans are a prime target for thieves, especially if they contain expensive tools or cargo. Taking steps to boost your van’s security can help lower your insurance premiums. Consider fitting the following:

• An alarm system to deter would-be thieves

• An immobiliser to prevent hotwiring

• A GPS tracker to help police locate your van if it’s stolen

• Deadlocks and slam locks for added protection

Parking your van off-road, such as on a private driveway or in a locked garage, can also help reduce premiums versus parking on the street. Some of the cheapest vans to insure, like small car-derived models, may already come with good built-in security features.

5.Build Up a No Claims Bonus

A no claims bonus (NCB), or no claims discount, is a count of the number of years you’ve gone without making an insurance claim. For each claim-free year, insurers typically give a discount off your premium – usually up to a maximum of five years or 75% off.

The more years of NCB you accumulate, the cheaper your insurance will be. You may be able to protect your NCB for an extra fee so it’s not affected if you need to make a claim. And if you’ve built up an NCB on another vehicle, like a car, some van vs car policies will let you transfer this across to keep costs down.

6.Consider a “Black Box” Telematics Policy

A telematics or “black box” insurance policy involves having a small device fitted to your van that monitors your driving. It measures things like your speed, braking, acceleration, cornering, and what time of day you drive. The insurer then uses this data to assess your driving risk and calculate your premiums.

If you consistently drive safely and responsibly, you could see a significant reduction in your insurance costs. This is especially helpful for younger or inexperienced van drivers who typically face very high premiums. With a telematics policy, your driving ability is reflected in the price you pay.

7.Shop Around and Compare Quotes

Perhaps one the single most effective way to get cheaper van insurance is to shop around and compare quotes from multiple providers. Not only do premium prices vary widely between insurers, your cheapest option can also change when it’s time to renew.

Using a comparison site is a quick and easy way to get quotes from dozens of insurance brands in minutes. But it’s also worth checking directly with popular van insurers like Zego Insurance in case they have any special deals not available on comparison sites.

Remember to look beyond just the price and check exactly what’s included in the policy. The level of cover, excess amounts, excluded drivers, and any extra benefits can all make a big difference.

 

What is the cheapest type of van insurance?

The cheapest type of van insurance needed for work is usually third party only cover, as this provides the minimum level of protection required by law. However, third party policies can sometimes work out more expensive on average than fully comprehensive cover – this is because higher-risk drivers tend to choose lower levels of cover, which pushes up prices.

How can I reduce my van insurance premiums?

There are several steps you can take to reduce your van insurance premiums, including:

• Choosing the right level of cover

• Increasing your voluntary excess

• Paying annually instead of monthly

• Improving your van’s security with alarms, immobilisers and trackers

• Building up a no claims bonus

• Considering a black box telematics policy

• Shopping around and comparing quotes from multiple insurers

What is a no claims bonus?

A no claims bonus (NCB), or no claims discount, is a count of the number of consecutive years you’ve gone without making an insurance claim. For each claim-free year, insurers usually give you a discount on your premium, up to a typical maximum of five years or 75% off. Building up an NCB is one of the most effective ways to keep your van insurance costs down.

Is it cheaper to pay for van insurance annually or monthly?

It’s almost always cheaper to pay for van insurance annually in one lump sum rather than in monthly instalments. This is because monthly payment plans include interest, essentially acting as a high-cost loan. If you can afford to pay upfront for the year, you’ll usually get a lower overall price and won’t need to budget for monthly payments. Flexible insurers like Zego let you choose the right payment option for your needs.

Article written by Thomas Mark at TMR Digital

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