Expensive
van insurance quotes are an overhead we can all do without in
today’s competitive and margin-slimming days.
While
cost control is sometimes more of an art than an exact science,
simply going for the cheapest van insurance quote you receive
isn’t always the best course of action. Nor is it likely to be the
best value for money.
However,
knowing which factors influence van insurance companies in
calculating their quotes will help you gain a better understanding
of the issues involved.
Industry sector
The
price quoted by a van insurance company will depend on your line of
business. Inevitably, some types of company will find van insurance
more expensive than others. Courier firms, for example, with high volume
deliveries and a high annual mileage will naturally receive a quote
that reflects this risk, whereas a sole trader like a plumber with
one van whose customers are in a small geographic area will pay much
less.
Van
insurance for non-commercial usage will be cheaper again.
Territory
Some
companies restrict cover to clients based on the
UK
mainland only. Taking a van to the continent requires additional
insurance cover to be in place.
Drivers
Age
and experience counts for a lot when calculating van insurance
quotes. Drivers should, for optimum premium price reasons, be
restricted to an age range of 25 – 70 and be holders of full
driving licences that are both current and clean. Their insurance
claim or loss record will have to be confirmed.
Vehicles
Vans
should not be modified or used for any purpose for which they are
not intended. If you own three or more vans you may be able to
access a substantial discount by opting for fleet insurance. If in
doubt, ask - some
companies consider three vans a fleet while others look for five.
Vehicle
market value, too, comes under scrutiny. Some policies have upper
limits on market values, so be sure to check this point.
Usage
The
load to be carried by your van and the delivery destination also
play a major part in fixing the price that will be quoted by a van
insurance company. Stationery, for example, is relatively benign and
therefore low risk. Bottles of LPG and other hazardous goods, by
comparison, attract a much heavier weighting because of the greater
risk they pose to the vehicle, driver and other people. Not only
that, the type of location you deliver to can enter the equation.
Nuclear power stations, military bases, explosives factories etc.
are the kind of delivery address van insurers are not overly
thrilled about.
