Why is van insurance so expensive?
If you drive a van, you may have noticed that it costs a lot more to insure than your car. The difference in premiums can range anywhere between a couple of hundred quid, and upwards of £1,000, but why is this?
When you approach an insurance company for a quote, you have to fill out reams of paperwork. Thankfully, these all tend to be online forms nowadays, but they all ask the same questions; ‘What do you do for work?’, ‘Where will the vehicle be kept?’, and ‘How many miles a year are you estimated to clock?’.
A vehicle’s purpose, usage patterns and “associated risks” all determine your policy fee. Associated risks are things like previous claims, driving convictions, and accumulated penalty points. A history of these things can significantly raise insurance premiums as they flag an increased risk of a claim against providers.
Reading this guide won’t halve your insurance quote, but understanding the reasons behind the high prices might mean you can work with the system and save yourself a few pennies.
Key factors driving up van insurance costs
Vehicle type and security features
Your vehicle make, model, age, and its inbuilt security features determine whether your quote comes in higher or lower. Unsurprisingly, vans that have advanced security systems often have lower premiums, as in theory, they are less prone to theft and vandalism.
Driver age, experience, and driving history
Your driver details and previous driving history heavily influence van insurance premiums. If you’re younger and less experienced, you should expect higher premiums. This is down to the previously mentioned ‘associated risks’ and the assumption that young drivers have an increased likelihood of being involved in accidents.
If you’re a driver with a clean record, you’re in a better position than those who have had previous claims, driving convictions, or accumulated penalty points.
Remember: Clean records + more driving experience 🤝lower insurance costs.
And to find out about your insurance group? Read our handy guide on insurance bands here.
The role of location and vehicle usage
Where you keep your van will impact your premium. Urban areas with higher theft and accident rates are associated with higher risk and therefore you’d expect your insurance to come in higher than those in rural locations.
What you use your van for will affect your quotes. If a van is for personal use only, it’s expected that it won’t have as high mileage or third-party exposure as a commercial vehicle. Where you’re driving will also be taken into account, as a van driven in inner cities could be seen as having higher associated risks than ones that aren’t.
Job roles also impact insurance premiums, with delivery drivers, tradespeople, and business owners facing varying levels of risk exposure based on the nature and frequency of their work-related travel.
Remember that your running costs in urban areas with Clean Air Zones will be higher in a van that’s not Euro 6 compliant. Find out about the costs to drive vans in emissions zones here.
Is your van ‘the business’? Courier vans vs carriage of own goods
What you’re using your van for affects how much your insurance will cost you. Anything business-related tends to come with higher costs.
For example, a van used for a courier service has a different insurance premium than a van used for ferrying around your own personal goods.
Courier services typically involve more miles and have higher associated risks, leading to higher insurance costs. Personal use vehicles have less exposure to third-party risks and often have lower premiums as a result.
Insurance group ratings: Understanding how they affect your premium
Insurance group ratings categorise vehicles based on their performance, repair costs, and safety features. The category your van falls into will impact your insurance premium as the rating gives the insurer an idea about its potential risks.
If your van is higher-rated, you can expect it to have a higher premium due to perceived risks associated with repair costs.
External factors contributing to cost increases
Van insurance isn’t just about where you’re going in your wheels and what you’re doing with them. It’s affected by other external factors too:
1. Economic climate – Insurance, like everything, is affected by inflation.
2. Increased repair costs – Rising costs of vehicle repairs and replacement parts raise premiums.
3. Insurance fraud – False claims and staged accidents increase costs for everyone.
Ready to switch to a cheaper van to run?
If your insurance has crept up to a level that’s impossible to keep paying, you might consider selling. With 84% of Motorway customers getting more than the market price, it’s well worth taking out a free, instant valuation today to see how much your van could be worth.
You could have a deal agreed in as few as 24 hours with a verified dealer, and you might be surprised by what your trusty van would fetch on Motorway. Just make sure you’ve got your VAT details correct when you get your valuation.
FAQs
How to save money on van insurance?
Firstly, comparing quotes from multiple insurers can help you find the most competitive rates. Additionally, opting for a higher voluntary excess can lower premiums, although it means paying more out of pocket in the event of a claim. Installing security devices, such as alarms or immobilisers, can also reduce the risk of theft and potentially lower insurance costs.
Can I use my car’s no-claims discount on van insurance?
Yes, in many cases, you can transfer your car’s no-claims discount to your van insurance policy. This transfer can significantly reduce your van insurance premiums, as it reflects your history of safe driving and reduced risk. However, the exact amount of discount transferred may vary between insurers, so it’s essential to confirm this detail when obtaining quotes and purchasing a policy.
Can I drive any car on my van insurance?
Whether you can drive other cars on your van insurance depends on the specifics of your policy. Some van insurance policies include a ‘driving other vehicles’ extension, which allows you to drive cars not owned by you under certain conditions. However, it’s crucial to note that this extension is typically limited and may not provide comprehensive coverage.
Ready to sell?
Need to sell your van, or want to understand more about documentation or maintenance?Check out more of our guides here, covering everything from the paperwork you need when buying and selling, to various notices you may need to file with the UK’s driver and vehicle licensing agency.