It is estimated that between 25 and 33% of all road accidents involve a van driver that was ‘at work' at the time. A police study has shown that over 47,000 light goods vehicles are stolen every year in the UK. The cost of these thefts and accidents is a massive £152million in lost assets, as well as the cost to the tax payer in police manpower attending accidents, dealing with thefts and coping with the paperwork that these situations inevitably generate. Ensuring that you have the right van insurance is now essential.



The minimum amount of insurance required by law is third party only and this covers you for injury or damage to a third party and does not cover you for personal injury or damage to your own vehicle. Third party only is the most basic (and cheapest) form of van insurance. Third party fire and theft insurance covers your vehicle in event of theft or a fire providing you with the market value of the vehicle back. It does not, however, cover any goods or equipment that may have been in the vehicle at the time. And this omission is an important point to remember if you use a vehicle for commercial purposes.

Paying a little extra for peace of mind may be more expensive in the short term but can be a godsend in the event of anything other than a basic theft or fire. When considering cheap van insurance providers, have a checklist ready to see if they tick all the right boxes.

Replacement vehicle

If your van is stolen or damaged, a replacement vehicle policy could be the one thing that keeps your business running. If it takes several weeks to recover and repair your original vehicle this could mean the difference between staying in business or shutting the doors, so it's a key point to look for in any good commercial van insurance policy.

Goods in Transit

If your vans are carrying stock around, insuring your goods in transit is essential. One theft could ruin a company's fortunes, so making sure that both your van and your stock are covered makes basic business sense.

Legal expenses

This is often a very cheap extra (often costing no more than a few pounds a year) but gives you access to legal representation should your van be involved in an incident that results in legal action being brought.

Breakdown coverage

Considering that a single tow off the motorway could actually cost you more than a year's worth of breakdown coverage, ensuring that this is included in your van insurance is common sense. Breakdown coverage is sometimes included in the cost of cheap van insurance, so look for policies that have it as one of their standard items. You can also look for insurance policies that cover windscreen damage as well, as chips and cracked windscreens can often be very expensive to repair or replace. A small excess charge may be included as part of the policy, but it is invariably much cheaper than the cost of a replacement windscreen.

In the event of a breakdown, your vehicle may be towed to the nearest repair shop or garage. Some commercial van insurance policies include an additional extra called repair referral. This gives you a personal endorsement from a registered mechanic of a body shop that is reputable and will not take advantage of your situation. This is particularly useful if you breakdown in an area that is unfamiliar to you.

Excesses

Excess charges vary from policy to policy. The bigger the excess, the cheaper your policy but you will receive less money if you have to claim against your van insurance.

Other things to consider when looking for the best van insurance are if additional named drivers can be added to the policy (particularly useful for fleet vehicles where more than one driver may operate multiple vehicles), no claims discounts and whether your cheap van insurance covers you for driving outside the UK. Including these extras in your van insurance may be a little more expensive, but it will give you the peace of mind knowing that you are covered for every eventuality.