Van insurance is something you don’t want to be caught without if disaster strikes. No one can predict the future but it’s better to be prepared for the worst than to be sorry.
Insurance is something most of us prefer to avoid but can you really afford to be inadequately covered if things go wrong? Most of us can’t and that’s why it’s important to make sure you have the right cover. But which type do you need? Commercial or Private?
If that’s your question too, this article is for you.
1. What Does It Cover?
Do you use your vehicle primarily for work purposes? Do you own a vehicle that was designed for commercial use? If so you may need a commercial insurance policy.
Commercial insurance policies will also cover you for personal use, but the reverse is not true. If you use your vehicle to transport products or goods to earn money, even if it’s part-time, you won’t be covered for loss or injury under your personal insurance policy.
Are you still unsure what type of cover you need? Best is to imagine scenarios of your travel. For example, if you’re a builder and you use your vehicle to transport equipment for your work and you travel from site to site, you will require commercial insurance. This is to cover the high risk of accidents & theft. If you only use your van to commute to work and back, then a personal policy is all you need.
If you’re still unsure discuss it with your insurance broker or agent. It may be possible to change your personal cover to include some work activities which will cost you less in monthly premiums.
2. Advantages / Disadvantages of Each
Commercial and personal van insurance come with different types of risks. The risk and involved in the insurance quotes are governed by various factors.
– Risk: You’re likely to use your work vehicle far more than your personal vehicle which increases the chances of theft and accidents.
– Drivers: If you have a business vehicle you may also have multiple drivers and the insurance will need to cover all of them.
– Wider area: If your business transports products it may do so across a wide area or even across the border into other countries. A commercial policy will cover your vehicles for all the areas they operate in.
The advantage of a commercial cover is that you’ll be fully covered whether you’re using the vehicle for commercial or personal use. It’s also more comprehensive.
Personal van insurance doesn’t cover business owned vehicles or vehicles designed solely for business use. In some cases, if you use a commercial vehicle for personal use and you can provide a valid reason why you need it your insurance company will arrange a personal insurance policy.
Personal insurance may provide some cover for business use providing it’s not used primarily for business. This will need to be discussed with your insurance broker or agent who will individually assess your situation and decide which policy is best suited to your needs.
If you earn money from the use of your vehicle in any way, then you need commercial insurance. You may only need your business activities included in your personal policy but it’s best to clarify and be sure that you’re fully covered for any eventuality.
Do you have more questions? We’ll be happy to answer call us today on 01 660 6900.