A work van is often a necessary but potentially costly business expense. small businesses, high van insurance costs can have a particularly damaging impact on potential profits. Therefore, making savings in this area is essential to help to keep your company’s costs down.
1. Improve your van’s security
Making improvements to the security of your van can have an impact on your insurance costs. Even something as simple and affordable as using a steering lock can deter thieves. Fitting an immobiliser, alarm or tracker can additionally demonstrate to your insurance company your van is at a lower risk for theft. This is likely to lower your insurance premiums, whilst also reducing the inconvenience and expense of a potential theft. You should also ensure you arrange a safe and secure location to park your van as declaring this to your insurance company can reduce your payments.
2. Remove expensive equipment from your van overnight
Similarly, emptying your work van at night may also lessen your insurance expenses. Leaving expensive tools or specialist equipment in your vehicle overnight can make your van a more attractive option for thieves. Therefore, declaring to your insurance company that your van will be empty at night can reduce your premiums.
3. Build up your no-claims bonus
You may need to wait for this saving to lower your insurance costs as your no-claims bonus is applied for every year you don’t make a claim. However, building up your no-claims bonus can eventually save you a significant amount of money on your insurance policy. If you’ve built up a good no claims bonus on your car, some insurers will also let you transfer this bonus from your existing car insurance policy. If your insurance company allows this transfer, this could lead to your securing a sizeable discount on your van insurance policy.
4. Drive a smaller van
Whilst this may seem obvious, driving a smaller van at a size that’s appropriate for the requirements of your business can reduce company expenses. A smaller van with a less powerful engine is also likely to mean smaller insurance payments. This could mean some welcome savings for your business as a result.
5. Pay insurance annually rather than monthly
If you can afford the initial costs, it’s much more cost-effective to pay for your insurance policy in one go rather than making monthly payments. Insurers may provide a discount if you’re paying for your policy annually, so this is an area where you can make some easy savings.
6. Increase your voluntary excess
An obvious but effective method of reducing your insurance payments is to increase your voluntary excess. The more excess you agree to pay in the event of a claim, the lower your van insurance costs will be. You should however carefully weigh up the potential advantages and disadvantages of increasing your excess. If you do make a claim, you could end up losing more money than you’ve saved.
7. Carefully consider optional extras
If you’re hoping to make some savings on your van insurance, you should ensure you only purchase optional extras that are necessities for your business. Whilst optional add-ons such as breakdown cover can be extremely useful in the event of an accident, they’ll also increase your insurance costs. Don’t neglect to purchase insurance extras that you consider to be a requirement for your company. However, it’s equally important you don’t overspend on adding extras that would have little benefit for your business.
8. Compare insurance prices
Shopping around for the best insurance deals is a great way of making some much-needed savings on your van insurance. Price should obviously be one of the most important factors you consider before purchasing insurance. Despite this, it’s essential you also choose a reliable and trustworthy van insurer to protect your investment in your vehicle. constructaquote.com can offer quotes from a panel of specialist van insurers to make arranging your insurance easy and stress-free. Over 20% of our customers also paid £266 or less for their
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