Van, Fleet and Business Car Insurance
Van, fleet and business car insurance provides insurance cover for your commercial vehicle or vehicles including the legally required third party cover.
Key Features
Business related motor insurance is a compulsory class of insurance, meaning it is required by law for business that has road going vehicles.
The compulsory aspect relates to damage caused to third party 'personas' or property, however damage caused to the actual vehicle, by fire or theft is not a compulsory purchase and is therefore optional.
Other aspects of cover critical to the business user are (a) Goods in Transit, which relates to anything from business equipment to stock and (b) Legal Expenses which is necessary to recover costs in the event of non fault accidents.
Who is it for?
- General Tradesmen
- Building and construction companies
- Couriers and parcel delivery companies
- Home based businesses
- Printers and manufacturers
- Businesses with multiple vehicles
- Both business cars and Vans included
- Private users
Benefits
- Third Party Liability - Cover in the event you cause damage to third parties or property
- Fire and theft - Cover for damage caused by either
- Vehicle Damage - Full cover will damage to the vehicle itself
- Key additional covers - Goods in transit (damage to or theft of) including tools and equipment, customers goods and stock, Legal expenses, breakdown cover, vehicle replacement cover and foreign use.
Things to watch out for
- Policy excess - Remember to check the small print of the policy to determine the extent of excess. If third party only cover is taken you will be liable to pay all damage to the vehicle and it's contents. Full comprehensive cover pays for all damage to the vehicle and third parties subject to an excess, a standard example would be £250
- Limit of Indemnity - Check the limits of indemnity and seek specific quotes for a minimum £5 million for third party liability cover inclusion. If £10 million is affordable it should be considered, as £5million is unlikely to be sufficient in the event of a multiple incident
- Optional covers -
- Goods in transit
- Legal Expenses
- Breakdown
- Replacement vehicle
- Foreign use
- Excess - Remember the excess is the amount you need to pay in the event of a claim. Excesses or 'deductibles' can range from £100 to the £5000
- Working outside UK - Most insurers require prior notification if you travel outside UK, however other policies include this cover so make sure you know the requirements of the cover
- Additional Drivers - All additional drivers need to be reported to insurers immediately otherwise they will be deemed to be uninsured.
What are the next steps?
- You will need a lot of information about your business to get a quote - have it to hand
- You also need full details of your vehicle(s) - Make, model, registration, securely parked etc
- Start date - Insurance prices change frequently, this could have a bearing regarding when you want the policy to start
- Compare insurers - Business motor insurance is a very competitive product, so be sure to get comparative quotes, prices do vary
Compare Quotes
Compare, Decide, Buy
Frequently asked questions
What is an excess?
An excess is a contributory amount you pay when making a claim, however if the claim is deemed not to be your fault, it may be possible to recover your excess from the party deemed to be at fault.
If I've been named on another policy, am I entitled to any no claims discount?
Most insurers will only reward the actual policy holder with no claims discount. If you have been claim free however, there may be some type of introductory discount.
What happens if I have an accident?
Contact your insurer immediately who will advise you how to proceed. Make sure you have your policy number and vehicle details available. Depending on your cover, you may be able to source a replacement vehicle.
What is legal cover?
Generally legal cover provides legal advice via a 24 hour, 365 days a year helpline. Legal cover provides assistance to recover uninsured losses (such as excess), medical losses or loss of earnings. Standard cover provides up to £50,000 for legal costs to pursue a case and up to £10,000 worth of cover to defend against any motoring prosecutions, excluding drink, drug related incidents
Can I drive abroad on my policy?
Depends on the cover. Most policies allow foreign use, however some include as standard, whilst others require prior notification.
What is protected no claims discount?
With most insurers you can protect your no claims discount for up to two 'at fault' claims, in any 5-year period. This means that if your vehicle is stolen, or you have no other party to claim against, you won't have to lose your no claims discount.
Which kind of business use do I need?
If you travel to and from work and transport business related goods such as tools, you will require "Carriage of Own Goods." This would be suitable for plumbers, decorators, window cleaners or even florists for example. "Carriage of Goods for Hire & Reward" extends this cover to include the transport of goods for payment and would be suitable for a fast food or catalogue goods delivery driver.