As the price of everything continues to rise, many drivers are feeling the hit with their vehicle insurance. Renewal prices are skyrocketing. And shopping around for a new quote doesn’t seem much better.
Is van insurance cheaper than car insurance?
Typically, van insurance is more expensive than standard car insurance. This is for a variety of reasons, from increased average mileage to the day-to-day use of the vehicle.
Although the cost of car insurance has increased, so too have van insurance premiums. So the gap doesn’t look to be shrinking anytime soon.
How to get cheap van insurance
The good news is, even with the current price hikes there are ways to help bring the price of your van insurance down.
1. Shop around
Always shop around to see what price other insurers can offer you. It can be beneficial to speak to an insurance broker, as comparison site quotes are computer-generated and cannot be altered. A broker will take your circumstances, wants and needs into account to find the best deal.
2. Start shopping early
Insurance policies tend to go up in price the closer they are to the start date. Begin looking for quotes a few weeks before you need the policy to start to help lower the cost.
3. Compare cover levels
Each level of cover will be priced differently, so it’s worth comparing them to see the savings. That being said, your van insurance policy must have enough protection for your needs. Always take out comprehensive cover if you need financial protection for your own vehicle. Third party only policies aren’t always the cheapest anyway.
4. Consider increasing your excess
Setting a higher voluntary excess will often bring the total cost of your premium down. Make sure that the combined excess is still affordable. You will be required to pay the total voluntary and compulsory excess if you need to make a claim.
5. Pay annually
Monthly payments will be charged interest. This increases the total amount paid over the term of the policy. Always pay for your insurance annually if you can afford to do so.
6. Telematics
Also known as a ‘black box’, telematics policies can reward safe drivers with lower cost premiums. Some telematics policies can have restricted mileage and curfews, so only take one out if your circumstances suit the restrictions.
7. Reduce add-ons
Only take out add-ons that you need. Always check the price of individual policies to compare against the add-on cost. For example, independent breakdown cover may be cheaper than adding it to your van insurance.
8. Park safely
Park your van in a garage or on a driveway overnight to lower your premium. This isn’t always possible, but there are other security measures you can take to save money on your insurance.
9. Increase security
Insurance premiums rise if the insurer believes your vehicle is ‘high-risk’. Installing security measures like an alarm system, tracker or immobiliser can help lower the cost. Some insurers will discount your premium if you have a dashcam installed too.
10. Avoid modifications
Most types of modifications, whether they affect the performance or appearance of the vehicle, will raise your insurance cost. Some insurers even include branded wraps in this, so having your company logo or contact details on your van can increase the price. However, other insurers see this as a positive thing, since your van is harder to steal if it’s recognisable. Check with individual insurers to find out their stance on this.
11. Give accurate information
An insurer will ask for certain details to give you a quote, including your average mileage and the value of the van. Be as accurate as possible with these. Use previous MOT reports to accurately estimate your yearly mileage, as overestimating will raise your premium. Being accurate with your van’s value is also important. Overestimating will raise the cost of your insurance, but won’t mean a larger payout in an accident. It’s equally as important to not underestimate - giving false information to an insurer can void your policy.
12. No claims discount (NCD)
Transfer your NCD from another vehicle if necessary. Every additional year of NCD will reduce your insurance premium. You should see significant savings after five years of no claims.
13. Additional drivers
Be careful who you add to your policy as a named driver. Adding a young/inexperienced driver to the policy can raise the price. Only do this if completely necessary. On the other hand, adding an experienced ‘low-risk’ driver can lower the cost.
14. Advanced driving courses
Van drivers can complete advanced driving courses to improve their driving skills. Some insurers will lower your insurance cost if you have completed a course, but others won’t. Since the course will have an upfront cost, it’s worth checking with your insurer first to confirm future savings.
15. Downsize your van
Larger vans with bigger engines are understandably more expensive to insure. Make sure your van size is suitable for your needs, and downsize if possible to cut insurance costs.
Not every method to lower the price of an insurance premium will be suited to everyone’s circumstances. Make the most of the tips that are best suited to you, your van and your driving patterns.
Remember that the cheapest insurance isn’t necessarily the best. Always check customer reviews for the insurer to find out how it treats its customers. An insurance policy is useless if the provider is known to be hard to contact and reluctant to pay out claims.
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