Van insurance is a type of auto insurance that is designed specifically for vans. Van insurance is frequently purchased by companies who use vans in the ordinary course of business, such as plumbers, electricians, and florists. Automobile insurance is mandated by law in most places, which means that anyone who owns a van, whether for business or personal use, usually needs to maintain an active van insurance policy. Policies vary in terms of what they cover, and can usually be tailored to meet a van owner’s specific needs.
Insuring a van is usually more expensive than insuring a car, and insuring a van for commercial purposes typically costs more than if the van’s use is strictly personal. Much of the pricing structure has to do with risk assessment. Insurance rates are usually calculated by considering the value of the goods to be insured, the likelihood that those goods would be damaged or destroyed, and the cost to the insurance company of covering the damage.
Insurance companies usually have separate policies for personal and business van use. Much of this is for no other reason than that personal and business vans are used differently. Vans are usually more expensive than cars to begin with, and value always influences rate.
A van that is used as a part of a business usually racks up more miles than a van dedicated to personal use, and is often driven harder. Most of the time, vans are also used to carry equipment or multiple people that, if injured, could make an accident very costly. Visibility and stability are also safety concerns for vans that not all cars face. Depending on the nature of the business, many different drivers may be charged with operating the company van, too.
Insuring a company van can be expensive, but it is always a good idea — and in most places it is actually required. The vast majority of countries in the world mandate at least minimal insurance for all vehicles that travel on the main roads. Many companies decide to supplement the minimum required insurance with other coverage options in order to protect themselves against the costs involved in an accident or other calamity.
Regardless of fault, a van accident can have multiple negative cost repercussions for a business. Many van insurance policies will pay for repairs, will replace equipment if necessary, and will pay medical bills for all injured parties. Many policies will also provide a replacement vehicle, either a new van outright or a rental while repairs are being performed.
Van insurance is also typically available to those who rent vans, whether for a short or long period of time. Most personal insurance policies will cover individuals driving rented vehicles, but coverage is usually limited. Rental van insurance offers additional protection to the drivers and passengers of rented vans.