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Van Insurance Risks Calculated

How Are Van Insurance Risks Calculated?

by constructaquote - 21 June 2016


When it comes to your commercial vehicle, from an insurance perspective each individual risk is a calculated one. Insurers will consider many aspects in order to identify what kind of risk you are. Generally speaking, they will consider the following:

Your vehicle group

All vehicles have a vehicle group that are rated by the Association of British Insurers (ABI), and usually consider the following:

  • The value of the vehicle
  • How much parts would cost to replace/repair
  • Vehicle performance including acceleration and max speed
  • What security the vehicle has

There are also seasonal factors that could affect your vehicle group. For example, if a specific vehicle is involved in many accidents, it is likely that likely that the vehicle group rating will increase.

As a van driver, it is likely that you rely on your van to get you to and from work and/or carry your tools/equipment from one location to the next.

Usually insurance providers will request information of any claims that have occurred within a 5 year time span.

Any claims, whether settled as fault or non-fault will be notifiable and generally the more claims you have the higher your premium could be.

Driving convictions:

It’s important that you notify your insurance provider of any convictions on your licence prior to incepting an insurance policy. If you have convictions on your licence you could be seen as a higher risk to insure and your premium would likely increase.

In the event that you fail to disclose information regarding convictions, and a claim is made against you, your insurance could be invalidated leaving you with a potentially hefty bill.


If you require cover for more than one person to drive your van, their driving history as well as yours will likely be evaluated.

If you have younger drivers or drivers with claims and/or convictions it is likely that your premium could increase.


From a risk perspective, the more time you spend on the road, the more likely you are to have an accident.

If you spend a considerable amount of time on the roads, then it is likely that your premium could increase.


The type of work you use the vehicle for can also understandably affect the premium.

There are a number of occupations that could be considered higher risk. Insurers will usually consider what you carry in the van i.e. your own goods or other people’s goods.

Also, your van may be refrigerated as per your occupation, so this too could have an effect on the premium.

Van use:

There are usually four classifications when it comes to van use:

1. Social, domestic and pleasure (SDP) – This classification is aimed at those who use their van for private use.

2. Carriage of own goods (COG) – This classification is aimed at those who use their van for business use and carry their own tools/equipment, such as plumbers, builders, electricians, florists etc.

3. Carriage of goods for hire and reward (CGHR) – This classification is aimed at those who use their van to transport goods for payment via multiple drops.

4. Haulage – This classification is aimed at those who use their van to transport goods for payment via one long distance drop off.

Generally the premium could increase if you are carrying and delivering other people’s goods.


What surprises most van drivers is that their address can have quite an impact on the premium.

Drivers who reside in the city may be considered a greater risk as there may be higher volumes of traffic and greater theft statistics. Any areas with high volumes of car crime can also be considered a higher risk.

Insurers will also consider where the vehicle is kept at night i.e. on the road, on a driveway, behind locked gates etc.

It’s also worth being honest about your vehicles circumstances when taking out a commercial vehicle policy; not being truthful on your application could have severe repercussions in the event of a claim.

Need more information? Please call one of our van team on 08081686868.


Van and Vehicle Insurance

This guide is part of our series related to van and commercial vehicle insurance, for a quote, head over to our van insurance section.