Setting up a business is a decision that cannot be taken lightly, especially so in the times of economic uncertainty we currently live in. According to a study conducted by the consultancy firm Opinion Research, the average cost of setting up a business in the United Kingdom is in excess of £93,000. This figure goes down to £42,000 when it comes to small enterprises.
Considering the expenses involved in establishing a business, it is not surprising to find that every business owner looks for ways of cutting costs. Unfortunately, opting out of business insurance is becoming more and more common, as only limited companies are required to be insured by law. However, whether a company is limited or not, motor vehicle insurance is compulsory for all businesses that operate company vehicles, including company vans. Since the costs of van insurance can represent a burden on the budget, this article will outline the best ways of going about finding an affordable van insurance policy.
Important points to consider when shopping around for van insurance
The most important considerations that business owners must keep in mind when choosing a van insurance policy include:
Making sure that the policy covers their needs
There are three main types of van insurance available in the UK, and each of them offers a different level of cover. Third party van insurance is the most basic type of insurance policy, and it usually covers any expenses involved in the event of damage, injury, or death of a third party.
The next level of cover is offered by third party, fire, and theft van insurance, and lastly there is comprehensive van insurance, which is the dearest of all three but also the one that offers the highest levels of peace of mind.
Before making a decision, factors like how much the van is going to be used or the safety of the areas in which the van would be driven / parked must be considered. Also, if the van driver is over 50, they may benefit from specialist van insurance, and lastly, it is essential to be aware of common policy restrictions that affect engine size, the van’s age, or the maximum load allowed.
Checking the excess of the policy
Choosing to pay a voluntary excess often works out cheaper, but it might be more expensive in the long term if a claim is made.
Deciding which optional features are needed
It is a common strategy among many insurers to offer a bundle of optional extras, such as key protection, tool insurance, windscreen cover and/or replacement, and the use of courtesy vans if the company van is damaged. In some cases, these options may come in handy, but it is wise not to rush into a decision and to evaluate whether a company would actually benefit from them or not. Having said that, business owners must ensure that their policy includes breakdown cover, and if it does not, they should consider buying separately.
Some insurers offer the option of choosing between annual cover or pay-as-you-go van insurance. While the latter may seem more convenient, there are often higher premiums associated with it.
Finding suitable and affordable van insurance
Although van insurance can be costly, the good news is that insurance companies have been affected by the economic crisis and as a result, many offer heavily discounted rates in order to undercut the competition. This means that business owners can now benefit from exclusive van insurance quotes online. Using price comparison sites is a great option, as this can save time and effort, while providing dozens of quotes in a matter of seconds. Another option is to use the services of a dedicated van insurance broker, which may pay off for those who have special requirements or who are new to vehicle insurance.
By keeping in mind the points mentioned in this article, business owners can make sure they obtain the most adequate and budget-friendly cover for their company vans.