Do You Need Commercial or Private Van Insurance?

Do I need commercial or private van insurance? This is a question that most potential van owners will ask when they purchase their first vehicle. Van insurance is a legal requirement. It’s important that van owners have the right type of cover to ensure that they will receive payment in the event of a claim. They therefore need to decide whether they should search for private or commercial van insurance quotes.

Here’s a guide to private and commercial van insurance:

Private Van Insurance

If a person only uses their van for social, domestic or pleasure purposes, private van insurance will generally be sufficient. This could include using a van for hobbies or pastimes, or anything that isn’t deemed work. If a van is used for work purposes, even if it’s only done occasionally, it shouldn’t be covered by a private van insurance policy.

Commercial Van Insurance

The world of commercial van insurance can be very confusing. It’s natural to think that a commercial policy is only needed if a van is being used to run a business. However, people that use a van to drive to and from work will also need a commercial van insurance policy.

There are a number of different uses applied to commercial van insurance:

• Carriage of Own Goods: This type of use on an insurance policy will cover everything that’s carried in the van that belongs to the owner. This could include either business tools or personal items.

• Carrying Goods for Hire or Reward/Haulage: This type of use on an insurance policy is designed for drivers that carry goods and drop them off at different destinations, e.g. couriers. The goods themselves may also need additional insurance cover.

Always remember when arranging your van insurance, it is important you provide accurate information to ensure any claim you need to make will be paid for as incorrect information may result in a claim being refused.