Commercial vans have become increasingly popular as time goes on. Whether it is for building work, public transport purposes, tourist guided trips or package delivery, there is no denying that the van’s recently earned popularity is well deserved. If you have one of your own or would like to get one, one of the most important things that you will need to understand is commercial van insurance. What most people fail to understand is that vans, commercial ones specifically, do not fall in the same category as small vehicles, buses or other large vehicles. Below is all you need to know about commercial van insurance in terms of what it is, why to get it and where to get it.
What is commercial van insurance?
As the name suggests, commercial van insurance at its simplest form is a contract between the van owner and the insurance company where the latter is obliged to cover repair or replacement costs accrued after damage to the van under specified circumstances and depending on your policy the van insurer may cover theft, may only cover damage to other vehicles people or may cover everything under a fully comp policy.
More often than not, many people have a hard time differentiating between commercial van insurance and private van insurance. The difference is actually very simple. Unlike private van insurance, commercial policies are taken for vans involved in promoting the owners business, helping it function and financial life.
The company policy covers damages including accidents, fire and some even include theft.
Who qualifies for commercial van insurance?
Having understood what commercial van insurance is, the next thing you need to know is whether or not you qualify for the cover. Below are the people targeted by the commercial van insurance policies:
· People using vans as means of commuting from home to work.
· People using the vans for public transport ferrying members of the public from place to place at a fee.
· People using the van to transport merchandise for sale or use in production activities.
· People using the vans as a form of entertainment or recreation (e. g.) city guides.
· People using the vans as storage for equipment required for work.
Why do you need commercial van insurance?
The simplest and probably most obvious reason why you need commercial van insurance is the simple fact that it is your legal obligation. This is especially if you fall under any of the categories of qualifying van owners described above. However, there are very many other reasons why getting a commercial van insurance quote is the wise move for you as an owner. Below are five reasons why you need to get a quote for your van:
1. Covers repair and replacement costs in case of damage
This means that in case your van gets damaged, whether due to a traffic incident or fire, you repair costs will be covered by the company. This means that you will be back on the road in no time.
2. Covers injuries to third parties
This is an important reason especially when the van is used for public transport or for recreation purposes. The insurance covers medical costs when the third parties suffer injury while in the van.
3. You get compensated in case of theft
The compensated amount is usually the pre-determined value of the van. This will allow you either to get a new van or to stay on your feet long enough to find an alternative.
4. The policy protects you from liability when your van causes damage to another vehicle or piece of property
In case you unwittingly inflict damage on another person’s vehicle using your van, the insurance company will cover the repair costs.
5. The policy helps you assess your van’s value
The last reason why you need to get yourself commercial van insurance is to find out the value of your van. This information could come in handy should you decide to sell the van later on.
It goes without saying that commercial van insurance is not only a legal requirement for good reason but also a great investment for a person whose van is pretty much a major pillar in your financial life. A good commercial van insurance quote will offer you all the above described perks allowing you to comfortably go about your business knowing well that someone has your back.
If you need a commercial van insurance quote then do not hesitate to click the quote button above and compare over 40 quotes in moments.