What Makes Van Insurance Different from Car Insurance?

Posted in: Car Insurance.

Van insurance differs from car insurance in that its premium is generally calculated based on commercial use and the size of the vehicle. In addition, it considers other factors that a business will be more concerned with. We shall consider here just what the differences between the two are and how cover differs.

If you are looking for van insurance right now, then consider using one sure as they will be able to provide you with such a quotation online. They also specialise in the kind of insurance that will fully meet the needs of your business.


You can insure a van for private or commercial use. It may be that you need to hire one for a day to transport more than your car could manage because of its smaller size, or because you want to make fewer trips. For this activity, you can obtain temporary van insurance. Businesses, on the other hand, insure vans or fleets of vans that will be used daily in their business. A sole trader will use a van instead of an estate car because it is more suited to the running of their business. For this, they will look to insure it for business use and as a van.

Categories of Business

When insuring a van, you can opt for a specific van policy. This will ensure that you are covering it for the correct type of business use and provide maximum protection for your business.

There are primarily three types of insurance that relate to vans used for business purposes.

Carrying Your Goods

This relates to carrying the goods that you own for business reasons. A sole trader might, for example, want to carry their tools in the back of a van.

Carrying Goods for Resale

You can obtain cover for the goods that are not your own but carried during business and for which you receive payment.

Courier and Haulage

The difference between this and the above is that the goods you are receiving payment for will be transported over longer distances. An example of this might be the exporting or importing of goods overseas.

Additional Tool Cover

So, with van insurance, you can also insure under the same policy, tools carried within your vehicle. Private items transported outside of a house or premises would normally be covered by the “all risks” section of household insurance. However, in business, they will be insured as part of your van insurance. A few tools can soon add up in value, should you discover that they have been stolen. Also, many pieces of equipment can be expensive pieces of machinery to have to replace. It is for this reason that van insurance is a good idea so that this essential extra can be added to the policy. Also, as mentioned above, goods for resale can be insured, no matter how far they are transported.

The Way Insurance Premiums are Calculated

When calculating premiums, insurance companies will be looking to make things fair in terms of the risk that your van poses to them as opposed to those of others when it comes to paying out a claim. Factors that they will consider include size or storage capacity, value, and engine size. Value and engine size are likely to be higher than with many cars. It is for this reason that you can obtain a more competitive quotation when you opt for a company offering special policies for van owners. Otherwise, you can be worse off in terms of the premium you are getting in comparison to many car owners. To compare like for like is always the fairest way and is more likely where vans are the only consideration.

The differences between car and van insurance is that van insurance can be extended into carrying goods for different purposes that relate to business rather than for personal use. Additional cover is purchasable with specialist van insurance that will cover a tradesman’s tools as well or the saleable goods carried. In terms of the competitiveness of the premium you will receive, it is more cost-effective to go for a policy that is specifically related to vans as this will have been costed in the fairest possible way by the insurance company, based on what your van is used for compared to others.


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