Commercial Van Insurance

What is commercial van insurance?

Commercial van insurance is a policy for van drivers who use their van for business rather than purely private purposes. It is a contract between the van owner and the insurer: under the circumstances set out in the policy, the insurer covers the cost of repairing or replacing the van after damage.

Vans used commercially do not fall into the same category as cars, buses or other large vehicles, so they need their own type of cover. Depending on the policy you choose, a provider can offer third party only, third party, fire and theft or fully comprehensive cover. If you only use your van privately, see our guide to van insurance instead.

What is the difference between commercial and private van insurance?

The difference is straightforward: a commercial policy covers a van that promotes the owner's business or helps it function, while private van insurance covers a van used for personal purposes only. Many people struggle to tell the two apart, but the test is simply what the van is used for.

If your van earns you money, carries your tools or stock, or transports customers or their goods, you are using it commercially and a private policy is unlikely to be suitable.

Who needs commercial van insurance?

Anyone whose van plays a part in their work is likely to need a commercial van insurance policy. The source list of people for whom commercial cover may be suitable includes:

• People using a van to commute from home to work
• People carrying members of the public from place to place for a fee
• People transporting goods on behalf of customers in return for payment, which needs a hire and reward policy
• People using a van to move merchandise for sale or for production
• People using a van for entertainment or recreation, such as city guides
• People using a van to store equipment needed for work

If your use falls into any of these categories, insurance is a legal obligation and a commercial policy is the way to meet it.

What does commercial van insurance cover?

Depending on the level you choose, commercial van insurance covers damage to your own van, injury to other people, theft of the van and damage you cause to other vehicles or property. Taken together, the policy protects you in five main ways:

• Repair and replacement costs if your van is damaged in a traffic incident or by fire
• Injuries to third parties, including medical costs where someone is hurt while in your van, which matters if you carry passengers
• Compensation for theft, usually based on the pre-determined value of the van, so you can replace it or keep working while you find an alternative
• Liability for damage to other vehicles or property caused by your van
• An assessment of your van's value, which can be useful if you decide to sell it later

Which level of commercial van cover should I choose?

You can choose from three levels of cover, and the right one depends on how much you rely on the van and what you could afford to lose. The three options are:

If your van is a significant part of how you earn a living, comprehensive cover means a damaged van is repaired or replaced under the policy rather than at your own expense.

Do I need hire and reward insurance for my van?

You need hire and reward insurance if you transport goods on behalf of customers in return for payment. Standard commercial van cover is designed for vans that support your own business, such as carrying your own tools or stock, not for carrying other people's goods for money.

If you deliver parcels or goods for others, read our guides to hire and reward insurance and courier insurance to check you have the right policy before you start work.

How do I compare commercial van insurance quotes?

Enter your details once and you can compare quotes from over 60 van insurance providers side by side through the comparison service Quote Goat provides access to. You will be asked how you use the van, so be clear about whether you carry your own tools and stock, carry passengers, or transport goods for others, because that affects which policies are suitable.

Compare the level of cover as well as the price. A cheaper third party only policy will not repair or replace your own van after damage, and for a van that is a pillar of your working life that difference matters.