Van Insurance

Do I Need Van Insurance?

Your must have your vehicle insured for the commercial purpose it is used for.

What do you use your van for?

Insurance-wise, the three most common types of van usage are:

1. Carriage of own goods
2. Goods in transit
3. Courier insurance

1. Carriage of Own Goods

"Carriage of own goods" insurance - is designed for electricians, builders, roofers, joiners, landscape gardeners, window cleaners, plumbers, etc, who use their vans to carry materials they own and tools for work.

However, tools and goods carried are not automatically covered under this - you also need separate "goods in transit" insurance, although this can be combined in the one policy.

2. Goods in Transit

Haulage/Haulier in transit (Goods in Transit) insurance - for operations transporting a single load over distance, with usually one - possibly two - drop-offs.

The goods aren't owned by you - someone else pays you to transport them.

Your insurance certificate will state that you are allowed to use the vehicle "for business purposes including the carriage of goods for hire or reward."

Only one or two drop-offs are acceptable for hauliers' cover. For more than that (multi-drop) you'll need courier insurance.

3. Courier Insurance

Courier insurance - this is similar to haulage/haulier insurance.

You're carrying other people's goods for hire or reward.

Here you will use your van in a smaller geographical area - nearby city or towns - and make several deliveries (packages/parcels) to private houses or local firms.

If you let someone else drive your vehicle without insurance for one of these uses, or it's used for social/domestic purposes not previously agreed with the insurer, then it will not be covered if there's claim.

It's also illegal.