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Commercial van insurance
Consider insuring your business van with high liability limits and physical damage coverage.
Commercial van insurance is designed for businesses that use a van for business errands or to generate revenue. If so, standard van insurance won’t cover your driving, and you’ll need high liability limits such as $1 million to protect your company from lawsuits. Though premiums run high for business vans, you can look at ways to save for keeping your van and drivers safe and secure.
Compare commercial van insurance
Who needs commercial van insurance?
You likely need a commercial van insurance policy if you:
- Use your van as a sole proprietor, like a handyman.
- Own a business that uses vans, like a flower delivery company.
- Carry work equipment, like tools or machinery, in your van.
- Use your van for any business purposes or while on the clock.
What happens if I use personal van insurance for a business van?
If you get into an accident, your insurer could refuse to pay out any claims. This could leave you on the hook for damage to your van, someone else’s vehicle, and medical or legal bills after an accident.
Also, a personal van insurance policy isn’t designed to cover businesses. Instead, it covers going on family trips, shopping, participating in hobbies and other personal activities.
What business van coverage do I need?
Much like standard car insurance, commercial insurance can include several different types of coverage.
- Liability. This is the bare minimum you need to legally take to the roads in most states. It covers accidentally damaging someone else’s property or injuring another driver or pedestrian.
- Collision. This pays to fix your van after a collision with another car.
- Comprehensive. This pays to fix your van if it’s stolen or damaged from something other than a collision, like a storm or falling tree.
- Medical payments. This pays for medical bills if you or one of your employees is injured in an accident.
Optional business van insurance coverage
Depending on your insurer, you may be able to get coverage for:
- Personal effects. This can cover personal items, like a phone or laptop, that are stolen from your van.
- Windshield damage. This pays to repair or replace your windshield without a deductible.
- Rental reimbursement. This pays for a rental van to use if your van is being repaired.
- Roadside assistance. This can pay for the cost of help if your van breaks down on the road, runs out of gas or needs to be towed to a mechanic.
- Trailers. Depending on the size of your trailer, you may need to pay extra to add it on to your policy.
How much is insurance for a business van?
Estimates to buy commercial van insurance range from $750 a year to $2,000+ a year per van. However, prices can vary widely based on where you live and other factors. Your rates depend on:
- Your vehicle. Powerful, fast and heavy vans will be seen as higher risk and could lead to higher prices.
- Personal details. Your age, medical history and where you live can all impact your insurance prices.
- Driving history. If you have blemishes on your record this will bump up your overall van insurance cost.
- How many vans you’re insuring. If you’re insuring multiple vehicles, you’ll need to get fleet van insurance, which costs more overall, but less per vehicle.
Why is commercial van insurance so expensive?
Van insurance in general is going to be more expensive than standard car coverage, because vans are larger and have bigger engines, so are more likely to be involved in an accident.
Commercial car insurance policies tend to be more expensive because you’re driving the car more often, which increases the chances of getting in an accident.
How to get cheap commercial van insurance
While your business could pay a steep premium to insure the company van, you can lower rates in several ways.
- Compare your options. If your policy is ending soon, then use comparison sites and get quotes to find a cheaper van insurance policy. Then, you can use it as leverage to get a cheaper deal with your current insurer.
- Choose a higher deductible. Opting for a higher deductible shows your insurer you’re less likely to make a claim, which in turn could cut your premium.
- Add an experienced driver. Putting a more experienced driver as a named driver on your policy can help cut your costs.
- Exclude certain drivers. If possible, avoid adding young drivers, seniors or drivers with a history of accidents.
- Buy a van with high safety ratings. The make and model of your van has a huge bearing on your overall insurance costs. The next time you’re looking to buy a van, opt for one with plenty of safety features.
- Build a no-claims discount. Drive safely and avoid making any claims over a period of four or five years to get lower rates.
- Keep your van secure. Parking your van in a garage or another secure place makes it far harder to steal, which could lower your premium.
- Use discounts. Shop around and check which discounts you’re eligible for with different insurers.
Commercial van insurance exclusions
Exclusions vary from policy to policy, but you generally won’t be covered for:
- Bad drivers. You’re responsible for checking the driving record of your employees. In an employee who is unlicensed or has a history of unsafe driving gets into an accident, you may not be covered.
- Tools and equipment. Your tools and equipment generally won’t be covered by your auto insurance policy. But you may be able to get them covered through your business insurance policy.
- Reckless driving. If you drive recklessly, hit someone intentionally or otherwise act in a reckless or negligent way, you may not be covered.
- Workers compensation claims. Your auto insurance can’t replace workers compensation insurance, and won’t cover anything that workers compensation should cover.
If you use your van for business purposes, you’ll need to get a commercial car insurance policy. To find the best deal, compare quotes from several providers before signing up for your perfect policy.
Image source: Getty Images
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