The reason van insurance is in NI more expensive that other modes of transportation are caused by many different factors. In simple terms more people use vans for more purposes which mean the insurance policies have to cover more types of incidents for a wider selection of types of vans over a wider range of the population. It is worth spending time on sites like https://www.vaninsuranceni.co.uk/ that provide a comparative insurance exclusive to NI resident.
Like all other modes of transportation there are three basic types.
- Third party
- Third party plus fire and theft
It is true third party is generally the least expensive, but for a business it is just not practical. If the cost of repairs after an accident keeps the van off the motorway, they the tradesman or business cannot conduct operations and revenue is lost. This is another add-on many on their insurance policies to cover lost wages and revenue. This drives up the cost of insuring vans.
Purposes for using a van affect the cost of insurance coverage. The purposes for choosing a van to use include work, and personal proposes.
Using a van for work
- This can be for courier services.
- Transportation of goods.
- Transportation of people.
- Trades person using van for work as a mobile shop
Using a van personal reasons
- Because of large family.
- For more space.
- Preferred mode of transport.
Dangers of using a van over other types of vehicles that drives up the cost of insurance coverage.
- Less visibility in delivery vans due to fewer windows.
- Larger than the typical car.
- Different shape and weight distribution a car.
- Higher center of gravity than a car.
Reason for higher costs of insurance coverage
- Operating a van in a highly dense urban area.
- Operating a van for work purposes
- Higher frequency of being on the road than a typical vehicle.
- Operating in high crime areas for work purposes.
- The larger the van the higher the cost of coverage.
- Van weighs more than a typical car.
- Most vans operated by a business have multiple drivers that need to be covered.
The classification of vans by the government is another reason for higher premiums. Because vans are less aerodynamic than other forms of transportation, the petrol consumption is higher than other vehicles with the same engine displacement. This can lead to the vehicle being slower in responding to input by the operator that can lead to a higher frequency in accidents.
Ways of reducing the cost of van insurance.
- List the operators of the vans in a business.
- Know what the van is really worth and insure it appropriately.
- Place the logo of the business on the side of the van.
- Most policy writers will view this as the owner being serious about the business they operate and in many instances provide up to a 5% discount on the premium.
- If for personal use, list the family members that will be driving the van.
These are many of the reason the cost of insurance premiums for a van are higher than other vehicles on the road. The leading reason for a claim on a van or any other vehicle is due to payouts for accidents. For this reason upgrading the security of a van is generally not worth the investment because the reduction in the premium for such an improvement is minimal if any.