Exploring commercial van insurance cover options

Last year we published a blog exploring what commercial van insurance is, how to insure a fleet of vans, and the different levels of cover available, you can take a look here – Budget: Guide to Commercial Van Insurance. But, let’s delve deeper into exactly which cover is right for you, and go over any new updates including the additional products available that you may wish to consider.

Step one: What features are included in the tiers of cover?

Features and benefits will vary by insurance provider.

Comprehensive cover typically will offer benefits that cover you and your vehicle in the event of an accident even if you were at fault. It is the highest level of cover and includes accidental damage alongside third-party fire and theft. Budget’s comprehensive cover offers a range of features such as, personal accident benefits, motor legal protection, windscreen cover, personal belongings cover, audio equipment cover, emergency transport, driving abroad, medical expenses, uninsured driver promise (any excess you have paid will be refunded if you are involved in an accident caused by an uninsured driver – terms and conditions apply), replacement locks and more. The total excess on comprehensive policies is a compulsory from £100 and you can opt into paying an additional voluntary excess up to £500. A higher excess could bring down the cost of your premium.

For all commercial van policies, driving of other vehicles is not included. Loss or damage resulting from misfuelling is not covered, and there is no cover for theft if the keys are left in the vehicle while it is unattended.

   Third party fire and theft (TPFT) covers your van for theft and fire but won’t cover accidental or malicious damage to your vehicle or offer features to cover injury to you. At Budget, our TPFT includes a total compulsory excess of £100. Motor legal protection may be included as standard in your cover, as will audio equipment cover. Third party fire and theft with Budget Insurance also covers travelling abroad for up to 30 days in any one policy term.

   Third party only is the lowest level of insurance cover available in the UK and will legally cover you to drive and cover your liabilities to other people and their property, but it will not cover damage to you or your vehicle. There is no compulsory excess. Third party only cover with Budget Insurance will cover travelling abroad for up to 30 days in any one policy term, and we also include motor legal protection as standard. Check with your provider exactly what they are covering in terms of EU cover and other third-party features as this will vary between providers.

Step Two: What are the usage options?

If you’re trying to decide which use option to select on your commercial vehicle insurance, here is a bit of information on the different levels of cover to help you make up your mind…

-Social, Domestic & Pleasure – Insurance cover for social domestic and pleasure only including commuting to and from a single permanent place of work.

-Carriage of own goods (not for hire or reward) – This can cover you if you use your van to carry business goods.

Haulage (carriage of goods for hire and reward) – This can cover you if you’re carrying someone else’s goods for payment.

Step Three: Do I need additional products?

In addition to your core insurance product, additional products are available to create the ideal commercial van cover for you. Again, additional products and features will vary by insurance provider so make sure you read the information carefully to make sure the additional products you select – if any, are right for you!

At Budget Insurance the commercial vehicle additional products we can offer include:

RAC Breakdown Cover

If your van breaks down RAC Breakdown Assistance can support you in getting you back on the road as quickly as possible. Avoid hefty repair bills from call out, tow truck and garage charges by taking out breakdown cover which provides a 24/7 helpline.

Various levels of cover are available such as: UK Roadside, UK Roadside & Recovery, UK Roadside, Recovery & At Home Start, UK Roadside, Recovery, At Home & Onward Travel or EU & UK Roadside, Recovery, At Home & Onward Travel. These levels of cover will vary in price depending on the level of cover you require.

Personal Accident Cover

Personal Accident Cover is available as an additional product which is designed to support you financially if you sustained an injury as a result of an accident.

Personal Accident Cover may pay out up to £30,000 for a main driver following an accident, up to £4,000 per claim if you have to stay in hospital or outpatient care, and provides £750 in whiplash cover.

This financial support is a cash sum paid out directly to you or your family if you are injured in an accident, the amount paid out is related to how severe the injury is.

For a lot of our van insurance customers, an injury and time spent in hospital or away from work would have an impact on their income, so this cover may compensate you if you have to stay in hospital or go for outpatient care. Another benefit is that the cash sum will not be linked to a legal case proceeding going ahead.

Guaranteed Replacement Van

We provide a courtesy van for up to 7 days as standard on our policies, or you can add on Guaranteed Replacement Van or Guaranteed Replacement Van Plus cover for 28 or 60 days.

With Guaranteed Replacement Van, you will be provided with a replacement car-derived van for up to 28 days if your van is undrivable as a result of an accident. 

Guaranteed Replacement Van Plus provides a replacement van of a similar physical size to your own for up to 60 days, or a £100 cash alternative if you don’t need a replacement vehicle.

Van Keycare Cover

Keycare varies between insurance provider however at Budget this provides £1000 of cover for your van, home and even your business premises keys. This includes access to a national network of locksmiths, cover for keys that have been permanently lost, stolen, or locked in a building or vehicle, new locks and even reprogramming your immobiliser with no excess required.

Van Tools & Content Cover

Tools & Van Contents Cover is not only ideal for tradesmen, it can protect a wide range of professions including photographers, mobile beauty therapists and plumbers who carry expensive equipment for their jobs. This also covers you for equipment for your hobbies such as cycling, golf, scuba diving or kayaking.

The cover can be up to £5000 with only a £100 excess. This covers accidental damage, malicious damage and theft.

How has Commercial Vehicle insurance changed post-Co-vid?

Covid-19 saw a 20% drop in vehicle usage as the UK dipped in and out of lockdowns, but now we are finally getting back to some level of normality and are able to socialise with our loved ones and get back to work! If your vehicle usage has changed due to covid make sure to update this on your insurance policy or any new quotes you might complete.

To get a Budget quote, click here.

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If you need to check any details or make a change to your policy, please  log in to your Self-Service Centre. It will be much quicker for you to make changes to your policy online at the moment. Once logged in, you can also use our Webchat service which is available Monday- Saturday 8am-6pm and Sunday 10am-4pm to make changes, accept or decline your renewal or if you need to let us know about a claim. To log in, please click here.

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