Why is van insurance so expensive?

Why is van insurance more expensive than car insurance? We break down the reasons behind the price gap, and share tips to help you keep costs down.

If you own a van, you need van insurance. It’s an unfortunate fact of life, made more painful by high premiums. The cost of van insurance is expensive, usually higher than the typical premium for a passenger car. But just why is van insurance so expensive? This handy guide will walk you through the factors that affect costs and how to lower them.

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Key factors affecting van insurance costs

Lots of factors contribute to the cost of van insurance. These are some of the most important to consider:

Vehicle type and security features

The cost of insurance will differ depending on the make and model of van. Some commercial vehicles will be more expensive to insure than others. The value of the van plays a part, as does the desirability of the vehicle to thieves.

The size of the van will also make a difference. Small vans such as the Peugeot Partner will cost much less to insure than a big ’un such as a Volkswagen Crafter. However, you’ll need a van that’s large enough for its intended use – there’s no point saving a few quid on your insurance premium if the van isn’t large enough for your needs.

Security features are also important, both in terms of the standard features and any additional aftermarket security fitted. Any good modern van should have an alarm and immobiliser. That’s the bare minimum.

High-tech security such as a tracking device can lower your premium, but don’t think old-school security is out of date. A good quality steering wheel or gear stick lock will either stop a thief in their tracks or at least slow them down.

Check with your insurer to find out which security devices are best for bringing down your premium. Look for products that are approved by automotive risk intelligence organisation Thatcham Research or Sold Secure.

Driver age and experience

It’s not just about the van itself. The person behind the wheel also influences the premium.

The younger and more inexperienced the driver, the higher the premium. An older, more experienced driver will find cheaper cover.

It all comes down to risk. In general, a younger driver (especially someone under 25) who has only passed their test in the past few years is at higher risk of a collision than an older driver, especially one who can point to several years of claims-free driving. Combine a healthy no-claims bonus with a licence free of penalty points, and van insurance won’t be quite so expensive.

If more than one driver needs to be insured on the van, you’ll need to balance cost and practicality. Insuring the youngest member of your team may push up the cost of cover, but you may judge that it’s better for your business to have the flexibility of insuring them. You’ll need to balance the extra expense against what’s best for your business.

Van usage and purpose

What you do with the van also plays a part in the premium you pay. For example, a delivery van is regularly stopping and starting through the day with the driver leaving the vehicle for a few moments at a time. That puts the van and its contents at greater risk of opportunist theft than a van that’s driven to a work location at the start of the working day and left in one place, locked up with the engine off.

Where the van is kept

Just as some makes and models are more desirable to thieves than others, some areas with higher crime rates put vehicles at greater risk. As a rule, urban areas are likely to attract stiffer premiums than rural locations, pushing up the cost of your van insurance.

Now, you’re not going to move house just to lower your insurance premium, but it’s worth knowing that your location is going to impact the price of your insurance.

Much like a car, leaving the van on your drive at night also means a lower premium than if it’s parked on the street. Keeping it behind locked gates, either at work or at home, can also make the cost of insurance more affordable.

Is van insurance more expensive than car insurance?

The short answer is: “Yes, van insurance is generally more expensive than car insurance.” The longer and more complicated answer is: “It depends.”

There are so many factors that feed into the price of insurance, both for vans and cars.

Something that counts against commercial vehicles is the value of what’s kept inside them. Now, you often see vans with stickers saying: “No valuables are kept in this vehicle overnight.” Have you ever seen this type of sticker on a car? Thought not.

Thieves target vans not just for the vehicles themselves, but for the expensive tools, equipment and raw materials that may be left inside overnight.

How to lower the cost of your van insurance

Like any type of insurance, the obvious way to lower the cost is to minimise or eliminate any factors which make the policy high-risk.

So, these are some of the steps you could take:

• Comprehensive standard security features help to lower a vehicle’s insurance cost. Fitting additional security can also make van insurance less expensive. Even simple and affordable devices such as a high-quality steering wheel lock can make a difference.
• If you cover a relatively low annual mileage in your van, consider a limited mileage policy. Insurance cover for 5,000 miles per annum will be cheaper than a policy with no cap on miles.
• Young and inexperienced drivers will push up the cost of your premium. If you are young and only passed in the last few years, consider an advanced driving course as this may reduce your premium with some insurers.
• Don’t leave your van parked on the street if there is a more secure alternative. Leaving the car on your driveway or behind locked gates will bring down the cost of your insurance. That said, don’t be tempted to fib about where the car is kept overnight as this could come back to bite you if you need to make a claim.

Van insurance FAQs

Why is van insurance so expensive for young drivers?

It’s all about risk. Vans tend to be higher risk than passenger cars, and young drivers are at a greater risk of collision than older and more experienced drivers. So, that combination tends to make van insurance expensive.

Is business van insurance more expensive?

Yes, business van insurance is generally more expensive than personal van insurance. In part, that’s because if the van is used as a working vehicle, it’s more likely to have valuable tools or goods kept inside.

Why has van insurance increased so much?

Inflation has an impact on most costs, including insurance. On top of that modern vans and commercial vehicles are increasingly sophisticated. Modern driver aids use expensive sensors, and these are costly to repair or replace after a collision.

What is the cheapest van to get insured on?

This will vary depending on the insurer, but a small model with a little engine and a relatively low payload will be relatively affordable. Think Citroen Nemo, Nissan NV200 and Peugeot Bipper.

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