What you need to know about commercial van insurances
April 15, 2016 at 3:27 PM
There are a number of lesser-known issues related to finding the right kind of van insurance and it is worth considering before you search. Do you need commercial van insurance or private van insurance? Don't be hasty to answer as, although it might seem a simple question, it may be a more complex question than you think.
What difference does it make?
Insurances for vans in the UK are split into two different types: Business and Private van insurance.
The difference between those two is really simple: If you use your van to drive to a place of work you will need a business (commercial van) insurance. Private insurance is for people who use a van for private use only! (not for goods carrying or anything relating to a business).
More specifically, within the Business (commercial van) insurance headings, there are 3 different variations: a) Haulage, b) carriage of own goods and c) carriage of goods for hire or reward are all subcategories of commercial van insurance.
If it happens that you fall under the commercial van insurance, each subtype of the business insurances is further explained below:
Haulage is defined usually as for drivers taking a single load to a destination a long way away; however, there is an overlap between haulage and carriage of goods for reward or hire.
b) Carriage of goods for reward or hire
This is the insurance used by drivers who deliver goods regularly. Some insurance policies will not only insure the vehicle but also the goods carried.
c) Carriage of own goods
This is the type of policy often held by tradespeople such as plumbers, electricians, and builders as they need their vans to carry the tools of their trades.
Car or van?
People who use certain types of vehicles (such as people carriers, multi-purpose vehicles, or minivans) will need to have commercial van insurance rather than car insurance.
You might think that the classification of a vehicle is the same across the areas of motor vehicle manufacturing, vehicle taxing and vehicle insurance; but they are not.
Get it right
Consider the factors displayed above before you either give a classification to your vehicle or to the type of insurance you believe you may need.
Have a look around and ask questions. Some insurance and price comparison websites have useful tools that could help you make the right decision on your van insurance.
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