subject: How do Car and Van Insurance Differ? [print this page] How do Car and Van Insurance Differ? How do Car and Van Insurance Differ?
All vehicles need to have some form of insurance. This protects them against theft, collisions and damage. However, the insurance required to cover a van is, in many respects, completely different to a policy that you might get for your car. Here's why.
The main difference between a car and van is the usage of each. Ordinarily a car will be used primarily for personal travel - such as the commute to work. Of course there are exceptions to this rule, particularly for those who use their vehicle extensively for work, however largely there is often very little commercial intent involved. The same can't be said for vans though. A van, almost by definition, is a form of multifunctional utility vehicle. It can be used by trades people, delivery drivers and even removal companies. In turn, this means that they simply can't be insured in the same way as your everyday hatchback.
Insurers take a lot of factors into account when creating and pricing a policy. Therefore this marked difference in intended usage means that there significant changes in how both are calculated.
Let's take the example of a commercial van used by a plumber. The likelihood is that the vehicle will carry a good number of tools and parts at all times. It will also be parked at different locations each and every day. It's likely to do a fair amount of mileage, all of which will be related to the business.
The first issue here is the location of the van. When you apply for car insurance you will be asked where it is kept during the day and evening. The insurer will then use this information to judge the associated risk, which can then be converted into a cost. However, van insurance is ever so slightly different and has to take many more factors on board - especially if you are parking on different streets each day.
You can also get the contents of your van insured, which again adds a dimension that is different to most other personal-use vehicles. It is also extremely vital in many cases. A large percentage of the overall cost of insurance is the value of the object you're looking to cover. Therefore, if you have to include additional costly elements, then invariably the price you pay will be impacted significantly.
There are similarities though of course between car and van insurance. As both are vehicles, you will often need to protect the actual mechanical side of things, so that if you're involved in an accident, you can quickly get any repairs and replacements sorted out. You may also have the choice for breakdown assistance, windscreen protection and other add-ons that insurers now offer.
In fact this extra level of cover is often essential for many van owners. With the vehicle playing an integral part of day-to-day business, it's important that issues are dealt with quickly and efficiently. Failure to do so could lead to a loss of revenue as a result of being unable to meet your usual duties. As a result many van owners, particularly where they are heavily reliant on it, will pay significantly more for the comprehensive cover needed.
So the difference is very much a case of business versus personal usage. There are so many variables used in insurance of all forms that it is inevitable changes occur between even seemingly similar forms such as car and van insurance. The addition of contents, variable mileage and parking sites make cover for your regular van significantly more expensive. However, with tools, equipment and other items constantly being with you, the last thing that you need is for it all to be damaged or stolen and getting no compensation whatsoever.
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