March 2018

Van Insurance
MAKING INROADS ON VAN
INSURANCE: TOP TIPS
Van insurance premiums reportedly hit a three-year high in 2017, so Total Contractor
decided to take a look at some of the simple tips that might help contractors cut their
insurance costs...
In its October 2017 Van Insurance Index,
Consumer Intelligence, an insurance market
analyst, found that average premiums were
at a three-year high of £1,214 after prices had
risen 31.7% in the year to September.
There are a number of reasons for this rise –
an Insurance Premium Tax hike, a cut in the
Ogden rate (which governs pay-outs for major
personal injury claims), rising claims and
fraud, the post-Brexit weak pound and the cost
of repairing more technologically advanced
vans.
With this in mind, the natural question for most
is how to cut insurance costs?
“Look at the miles you
drive because you
should only pay for
those driven, and the
more you insure for,
the higher the
premium”
1. Don’t make a claim!
The most obvious solution is to not make a
claim and the more years of no claims bonus
(NCB) acquired, the greater the discount
applied to the insurance. Only claiming for
catastrophic losses that you cannot afford to
cover or protecting your NCB at extra cost are
the only options.
2. Safety in numbers
For those with more than one van, a thought
might be fleet insurance; it’s easier to
administrate and policyholders will benefit from
the effect of multi-buy.
3. Appropriate action
Next comes insuring vehicles appropriately.
Anything other than third party fire and theft, or
third-party cover is wasted on an old van, while
clearly comprehensive insurance should be
78 TC MARCH 2018