In the current economic climate business owners will welcome any way of reducing their business expenditure. Over the years van insurance premiums have increased significantly but there are ways that you can reduce this cost.

Types of van insurance

The three types of van insurance are third party, third party fire and theft and comprehensive with third party being the cheapest and comprehensive the most expensive and third party fire and theft being in between.

Third party – the minimum legal requirement but it only pays out for third party damage.

Third party fire and theft – includes third party damage but also damage caused to your own van due to fire or if stolen. If you are involved in an accident your vehicle will not be covered for any damage.

Comprehensive – in addition to what is covered under third party and third party fire and theft you are also covered for any damage to your own van and personal injury even if you were at fault.

You must bear in mind that reducing your premium by opting for third party insurance may prove to be a false economy if you were involved in an accident causing substantial damage to your own van.

Excess

Van insurance policies come with a compulsory excess but there is usually an option to pay a voluntary excess as well that will help reduce your premium although you will have to pay more towards the repair bill in the event of a claim.

Overnight Parking

If you are able to park your van on your drive or in a garage overnight rather than on the road your premium may be lower.

Security Devices

By fitting the likes of a car alarm, tracking device or immobiliser to your van may help reduce your premiums.

Shop Around

When you receive your renewal notice consider going on the Internet and on to a comparison price van insurance website to compare the cost of van insurance from various providers. You may be pleasantly surprised to find that you may get a lower premium than you are presently paying but for the same level of cover.

Mileage

The more miles you do each year in your van the higher the premium is likely to be as you are more likely to have an accident if you travel 25,000 miles a year than if you only travel 5,000 miles a year. Be realistic and honest about this figure.

Other Drivers

If you name the drivers on your van insurance policy that may be cheaper than allowing anyone to drive it.

Type of Van

If you are choosing to buy a van for the first time or replacing your existing one check which insurance group it is in as the lower the group the lower the premium.

Annual Premiums

If you can afford to pay the premium annually consider doing so as it may be cheaper than paying monthly.

Hopefully the above tips will help you reduce your van insurance premiums.