What you need to know about van and commercial vehicle insurances
When you’re running your own business it’s always important to make sure that you are getting the best deal and to save money where you can. Whether it’s the cost of a business premises, buying materials for a contract or even the insurance costs that protect the business you have worked so hard to build.
When insurers look at the cost of commercial vehicle insurance there are many aspects of the risk they consider. All of this information will be taken into account when calculating the premium for an insurance policy.
Most of us know that insurers will look at recent claims or motoring convictions in order to help calculate the cost of a policy and that these unfortunate events can cause an increase in costs. However, there are many other details and rating factors that also cause increases.
A good example is where a vehicle is kept overnight. Is it at your home premises or is it left at a business address? Is the vehicle kept off the road or maybe on a driveway or in a locked garage? Insurers may decide that if your vehicle is parked on a road then it is more likely to be hit by another car in passing or it could be more susceptible target for an act of vandalism or theft.
With this in mind an insurer will also consider the area you live in and calculate the risk based on crime and claim statistics. If your home or business address is closer to a town or city your premium is likely to be higher than those that are in rural areas.
Other areas you need to consider are:
- Has your vehicle been modified in any way from the original specification, increasing the value or performance of the vehicle(this will include signage or branded advertising on the vehicle)
- Are there any young drivers under the age of 25 named on the policy, as they are statistically a higher insurance risk
- High mileage insurance policies carry an increased cost as you are more likely to be involved in an accident
- Imported vehicles that are not manufactured in the UK
- What about car insurance group or occupation?
An insurer can sympathise with the fact that you can’t predict what help you may need to run your business over the year and that you may need to bring in external people to help, which means that every so often you may need somebody else to drive your business vehicle.
You can try to keep the costs down by asking for a policy which allows a temporary driver to be added rather than having one which covers ‘Any Driver’ permanently. This is likely to carry a small charge compared to a policy covering any driver, and this option could be cheaper in the long run depending on the frequency of the temporary drivers, the age and experience of the driver.
In some circumstances insurers may also consider providing a named driver discount for a driver who is added permanently but this will all depend on the age and driving experience of the person.
You should also check your annual mileage you declare to an insurer. If you guess and completely over estimate your mileage it could result in an increase to the cost of your insurance policy. To avoid this, simply check your MOT certificates each year and work out your average annual mileage. If at a later date you need to increase the limit, it can be done at any time throughout the course of the policy.
At HETAS Insurance Services, we can compare a number of different insurers when quoting for commercial vehicle insurance cover. So, with our expertise and knowledge of how to get you the best possible cover, why not call us on 08455 085 734 for a quotation and we can do the hard work for you.