Understanding The Impact that Your Business's Use of a Commercial Vehicle Can Have On Your Van Insurance
When it comes to van insurance, not all policies offer the same coverage. While the different considerations, such as the age and type of your vehicle, will affect your premiums and the level of coverage, so too will the way your business uses the van.
When you obtain a van insurance quote, you will need to specify the type of use the vehicle will be put to, as this can have a direct impact on the safety rating of the policy.
Broadly speaking, there are two types of use – business and recreational. Knowing which one your van is used for will help you to ensure that you receive an accurate quote. Moreover, it will also give you the right level of coverage.
Business Use
Business use van insurance covers vans that are used exclusively for business purposes. If your van is used to transport tools, goods (including documents and money) or for any type of corporate activity, then you will need business use van insurance.
It is important to note that the term ‘business use’ does not necessarily refer to vans that are used within a company. It can also be used for businesses run as sole trader or partnership, and for vans used for freelance and contract work.
If your van is used as part of a business, then you will need to declare its use when you get your insurance quote. Depending on the exact nature of your business, it may be necessary to give further details about the goods you are transporting, the frequency of your trips and the distance travelled.
Recreational Use
Recreational use van insurance covers vans that are used exclusively for personal use. This includes using the van for leisure activities, such as camping and fishing trips.
If your van is only used for personal use, then it is important that you declare this when you get your insurance quote. This will ensure that you get the right coverage and the best possible rates.
It is also important to note that recreational use policies will usually not cover the transport of goods or tools used for business purposes. If you do need to carry goods or tools, then you may need to take out a business use policy.
Factors that Impact Insurance Cost
There are numerous factors that can affect the cost of your commercial van insurance. Firstly, the type of van you have and its age can affect the price. Newer and more expensive vans will usually have a higher premium than older models.
As previously mentioned, the way that your van is used can also have an impact. Depending on the type and frequency of use, the amount you pay can vary dramatically.
Additionally, the value of the vehicle, the type of cover and the level of excess can all have an effect on the price. You may also need to take other factors into consideration, such as the mileage of the vehicle and the size of the engine.
It is important to note that the type of business you are in can also have an effect on the cost of your commercial van insurance prices. For example, a builder or contractor may find that their premiums are much higher than those of a sole trader.
Conclusion
In conclusion, the way your business uses its van can have a direct impact on your commercial van insurance costs. It is important to declare the type of use when you get your quote, and to accurately detail the goods or tools you transport.
Moreover, there are a number of other factors that can affect the cost of van insurance, such as the type of van and the type of cover you choose. Understanding these various elements can help you to get the best possible price and coverage for your commercial van.