Van Insurance

What Does Van Insurance Cover?

There are three levels of van insurance.

• Comprehensive
• Third party fire and theft
• Third Party only

Each type of insurance policy covers different level and different of risks.

Levels of Cover

You will need to select the level of insurance depending on the cover that suits your business and vehicle(s):

1. Comprehensive Insurance

Also known as 'fully comprehensive,' or 'fully comp,' this type of cover does what it says on the label.

Fully comprehensive van insurance protects against the widest possible range of losses and damages that could occur - including fire, theft and accidental damage - plus cover for any damage or injury caused to anyone else, ie, a third party, regardless of who's to blame.

This cover is the most expensive because the cost is worked out on insuring for the most risk and damage by almost any means, apart from exclusions in the small print. If your van is crucial to your business then you may well consider taking out a Fully Comp. or All Risks insurance policy, especially if you'd struggle to replace a van with one of similar condition if it was written off in an accident.

2. Third Party Fire and Theft Van Insurance

Third Party Fire and Theft (TPFT) van insurance is the cheap alternative because it covers fewer risks. As well as covering any claim by third parties for damage to their vehicle, property or wellbeing, it also covers the policy holder against fire and theft of their own vehicle. But it won't cover accidental collision damage repair costs for your van.

If you have a cheap van or can easily replace it then this might be a money saving option.

3. Third Party Only Van Insurance

Third party only (TPO) is the basic minimum level of cover available for business van insurance. If you're involved in an accident and it's your fault this type of policy will meet the cost of any claims for damage to property or injury to other people, including passengers.

Your legal costs are covered, as are compensation payments, although it won't pay any fines.

You will have no cover for damage to your own van if you're to blame for the accident/collision. However, if you're not at fault then this can normally be clawed back from the third party's insurers.

You won't be covered by insurance if your van is stolen or destroyed.

Despite the fact that it offers the least protection of the three types of motor vehicle insurance available, TPO van insurance isn't necessarily the cheapest.

Third party fire & theft can be cheaper than third party only. Why? There are more insurance companies offering this type of cover so quotes are more competitive.

But sometimes comprehensive is the cheapest option once you take in discounts such as age of vehicle, business location, driver's age and so on.

If in doubt, get quotes for all three types of cover before you buy.

Still Confused?

Online brokers GJT Hodgson Insurance Services offer the following guidelines, depending on the current market value of your van:

• £500 or less - Third party only
• Between £500 - £1,500 - either Third party only or Third party fire & theft
• Over £1,500 - either Third party fire & theft or Comprehensive