Essential tips for reducing van insurance costs as a tradesmen
Whilst van insurance is a legal requirement in the UK, there are a number of ways you can reduce your policy as a tradesman.
Insurance premiums for vans usually cost a few hundred pounds per year, but you can save money if you follow these simple tips.
How are insurance premiums calculated?
Before we go into specifics on how to save money, let’s first look at how insurers decide the cost of your insurance premium as a tradesman.
They are typically checking how much of a risk you pose to them when it comes to paying out in the event of an accident or claiming due to damaged property such as a smashed window when the car is parked.
Specialist insurers and brokers tend to be more experienced than the average insurer. If you are being charged a fortune by an insurer, they might be playing it safe when generating a cost, meaning you’d be paying more than you need to.
Specialist insurers and brokers will have a better selection of premiums they can offer you, meaning they can find the right policy for you at the lowest possible price.
Whilst some of the information used to calculate the price of your insurance, such as your age, recent claims, any criminal convictions you may have and the insurance group your van is in (vehicles typically fit into one of 50 ‘groups’ with 1 being the lowest risk), there are a number of ways you can reduce your policy if you don’t like the figure you’re being quoted.
Ways to save money on your van insurance
Call a specialist
Whilst it may seem old-fashioned in the modern tech world, calling a specialist insurer or broker is a surefire way to reduce the cost of your premium. They’ll be able to help you tailor an insurance quote to your needs, and answer any burning questions you may have.
They’ll also be able to answer any jargon you don’t understand from comparison sites’ quote forms. These sites tend to have generic prices based on the average van drivers, as opposed to ones that suit you and your job individually.
Get a quote in advance
Insurers are looking for those who are responsible, so getting a quote as far in advance as possible will show that you are not one to take risks on the price of your premium. Getting a quote at the last minute will also see the price rise quite dramatically compared to that of a few weeks prior.
For that reason, get a quote as soon as you can before you need it, to help save you money. The earliest you can get a quote is around 30 days before your current policy runs out.
Limit your annual mileage
Whilst this may not be possible for everyone, a lot of traders work within their local area and do not exceed more than the average Brit’s mileage of around 1,000 miles per month, or between 10,000-12,000 miles per year.
If you drive less than this, then you can opt to have either 7,500, 5,000, 3,000 or 1,500 miles per year as your limit. Be upfront and honest about your annual mileage, as this is checked by your insurer, if they can save you money, a specialist will detail how you can reduce your premium.
Spell your full name correctly
This may sound silly, but spelling your full name correctly (and including your middle name) can make a difference in the cost of your insurance. Using your full name will mean you will show up on the electoral roll and insurers will be able to do a soft-check on your credit score.
Update the electoral roll with your details
Confirm that the electoral roll itself is correct, to make sure the insurer can find your name on there if they check it.
Pay your insurance upfront in one instalment if you can
If you are in a position to pay for your policy upfront for the year, this will save you a lot of money. Insurance companies and brokers will often need to charge interest if you pay monthly for your van insurance.
This means extra charges which you could avoid by paying up front. If you have a credit card with a low interest rate – or even 0% – then consider using that if you’re able to, and avoid interest charges from the insurer or their finance providers.
However, paying monthly instalments doesn’t mean you can stop paying and stop your insurance. You will still need to pay for the policy in full (less any refunds offered by the insurer, if applicable).
Keep your van safe overnight and don’t keep tools in your vehicle
Keeping your van off the road and in a safe place such as a drive or garage will ensure your premium is reduced, as there is less chance of your vehicle being hit by another, or vandalised.
Unfortunately, a lot of UK vans have been broken into in recent years, with thieves often looking for tools that they can sell for a lot of money. By telling your insurer that you take your tools indoors overnight, this will also help lower the cost of your insurance. It’s worth noting that you should not have stickers saying you do this. Despite these stickers being used as a deterrent, you’re actually drawing attention to the fact there may be valuables in your van, making it a higher risk.
Add a voluntary excess
A voluntary excess is an extra amount you pay towards a fault claim. Most policies will include a standard excess, but if you can afford to cover more of a claim yourself, then adding extra voluntary excess may well drop your premium.
You may find you can then buy an Excess Protection insurance policy, which will cover your new excess, for less money than you saved!
No Claims Bonus and introductory discounts
Earning a year’s No Claims Bonus (NCB) can save you a large amount, but if you rack up the years every 12 months, the savings could be astronomical.
If you accrue around five years your savings could be close to 65% for your van.
If you have a second car, insure it with the same company
If the van you’re looking to insure is not your only vehicle, then make sure you tell your insurer.
You will often get a discount for having more than one vehicle insured with the same company. Even better, if you can also combine it with limited mileage and introductory no claims bonus, it can make a huge difference in the price quoted to you.
You only need to give all your personal details once, and then simply add more vehicles. With a diverse broker like Adrian Flux, you can even have your cars, motorbikes, home, caravan and more insured by the same company.
Upgrade your vans security
By increasing your vans security, you will be lowering the chances of it being stolen, meaning your insurance policy cost will lower too.
Install a dashcam
As dashcams may be able to help settle a disputed claim, some policies give discounts for having a good quality dashcam fitted and working. You can see the list of Adrian Flux-approved devices here.
Make sure your public liability insurance for your business is up to date
If you run your own business make sure your public liability insurance is up to date before you call for van insurance. Having this cover shows you are responsible and will help to reduce the cost of your policy with an insurer.
Don’t lie to your insurer
Whilst you may feel like you’re getting away with paying less money on your insurance by lying to your insurer, what you are actually doing is committing fraud. If you need to make a claim and your insurer finds out you lied to them when setting up your policy, it will become invalid.
Insurers share information so, even if you don’t need to make a claim, you will probably get found out anyway if you have been using comparison sites when shopping around for the best deal. Simply put, you should always tell the truth, even if you have a previous conviction.
Van insurance you can trust
By talking to an insurance specialist you can ensure you’re answering all the questions correctly, and have someone on your side to get the best and most affordable cover.
Finding an insurance company that offers good deals on van insurance can be difficult, especially ones that take your individual needs into account.
At Adrian Flux, we offer van insurance for tradesmen that’s tailored to your work, providing you with the peace of mind that your vehicle is covered. Call us on 0800 369 8590 or book a callback at a time that suits you.
