Types and Categories of Van InsuranceTue, 24/11/2015
More and more people are purchasing vans and other styles of ‘commercial vehicle’ but are not actually intending to use them for commercial purposes; instead using them to facilitate their various hobbies or interests; but does that mean they need a commercial policy for leisure use?
Many of us are familiar with the various types of cover available on a regular car insurance policy (Comprehensive, Third Party Fire & Theft, etc.) but what about van policies? Can we expect the same options and cover as we do from our car policy?
The types of use in a van policy differ from those in a private car policy. The proposed uses are grouped into 4 categories: Social use only; Carriage of own goods; Carriage of goods for hire and reward use; Courier Cover.
Social use only Van Insurance
Social use only cover is exactly as it states and only applies if your vehicle is being used for social activities. These include shopping trips, family trips, and leisure activities amongst other events. They do not include commuting to and from one fixed place of work. Unlike private car policies van policies do not usually have a social domestic and pleasure including commuting option, if you require commuting you would have to purchase a commercial policy under one of the other stated options above.
Carriage of own Goods Van Insurance
Carriage of own goods is sufficient cover If you are just commuting to and from work in your van, picking up stock form a wholesaler or delivering your own goods to customers. This cover is also suitable for anyone who carries their own equipment and tools for their trade; this would extend to builders, plumbers, repair technicians and cleaners among other occupations. This cover is not exclusive to business related activities and you would still usually be insured when using the vehicle for social activities.
Carriage of Goods for Hire and Reward
Carriage of goods for hire and reward. This cover is a legal requirement for anyone who is carrying people or goods that belong to others in exchange for payment. This cover usually applies to single drop haulage, such as furniture removal, but could also extend to maybe one or two additional drops.
Courier and Haulier Van Insurance
Courier and Haulier. It is also worth knowing that although you and your vehicle are covered by this insurance in the event of an accident, it would be advisable to have Goods-in-transit cover to ensure that the goods that are being transported also have sufficient insurance. The above is a very brief outline of a quite complicated matter – always speak to an insurance broker professional to place your insurance cover for a commercial vehicle.