10 top tips to help avoid van insurance price hikes
Published on: December 1, 2024
Published on: December 1, 2024
If your business has seen a sharp increase in van insurance premiums lately, you’re not alone. Recent data from the Consumer Intelligence Van Insurance Price Index, shows prices have continued to rise by 24.7% in the last 12 months to June, biting businesses already struggling in a cost of living crisis.
Fortunately, this increase does appear to be slowing down, with an increase of just 2.7% in the last 3 months; the lowest increase in the last five quarters, which will be a welcome relief for business owners.
The good news is that whilst these increases are not wholly avoidable, there are many ways we can mitigate them and make other savings on your van insurance policy. Here’s our top tips for bringing down prices without compromising on cover.
When you start a policy with a new insurer always transfer your no claims bonus from your previous policy. Some customers mistakenly believe that you can add no claims bonus from two policies together – unfortunately this is not the case and the no claims bonus accrued on the most recent policy will supersede the no claims bonus earned on the vehicle previously.
If you have sold or scrapped a vehicle, see if you can transfer this to the new vehicle.
Remember, no claims bonus is only valid for 2 years and insurers may have their own acceptance terms. Discuss this during the quotation to avoid any nasty surprises later on – the last thing you want is for your no claims bonus to be rejected and an additional premium applied.
It might seem obvious, but it’s best to get quotes from multiple insurers to ensure you are getting a great deal. This is where a broker like Quote Me Today can help. We’ll do the legwork for you, presenting the most suitable product on our panel. This may not always be the cheapest quote but usually it will be the best value we can find. Let’s be honest, buying cheap won’t save you money in the long run if you have a claim that’s not fully covered so always weigh up the cover options and check what is and isn’t included in the policy.
Some insurance companies will give a discounted rate if your vehicles have tracking devices fitted. It is always best to check with insurers beforehand as they may only accept a certain make and have a timeframe in which the devices need to be fitted to your vehicles.
Remember, our friends at Fleetmaxx can provide real-time telematics, vehicle and asset GPS tracking with FLEETLOC8.
The drivers on your policy can have a significant impact on the premium. Laura Vas, Senior Insight Analyst at Consumer Intelligence, noted that “Van drivers of all ages have seen new business quotes rise over the last year, but inflation was less extreme for younger drivers. However, premiums for the younger end of the market remain considerably higher.” Younger drivers are considered higher risk as they have less driving experience so opt for older drivers where possible.
Some policies will allow you to name drivers, whereas fleet insurance usually works on a driving restriction basis (e.g. any licenced driver over 21, 25 or 30). Beware, some policies have an increased excess for younger or less experienced drivers.
Never take on a driver without running a DVLA licence check first. There are some more serious motoring convictions that may not be covered by your policy and others that may need to be noted and that will likely affect the premium. Never leave your business exposed by not doing due diligence. Ensure you have a clear policy for drivers to report any new motoring convictions and carry out regular licence checks (we recommend every 6 months).
Claims mean there is an increased cost and risk to the insurer, so naturally this will affect your premium. Luckily, there’s lots you can do to prevent claims occurring.
Always keep your vehicles secure in a safe area (overnight postcodes also affect the premium) and do not leave any valuables in the vehicle. You may keep tools in your van, which can be attractive to criminals, so get into the habit of removing these overnight.
It is important to vet your drivers with an induction process and set clear driving standards and processes. Watching speed, keeping a distance and avoiding distractions are all part of safer driving, which will help prevent accidents.
If the unfortunate occurs and you are involved in an incident, report this as soon as it is safe to do so and provide full details. Dashcam footage, photos and diagrams can be incredibly useful and speed up the investigation and liability process. Remember, delays lead to increased costs, so always deal with any queries promptly. Keep an eye on open claims and if a claim is later settled as non fault, report this to your insurer as it could have a positive affect on your premium if it had been previously noted as fault.
Vehicle use contributes to how your premium is calculated and it’s important to provide accurate information to the insurer otherwise you may not be fully covered in the event of a claim.
According to the Consumer Intelligence Van Insurance Price Index, owners using vans for social, domestic and pleasure experienced quote increases of 26.5%, while tradespeople saw rises of 24.1%.
If there is the option to do so and you do not frequently claim on your van insurance, you may wish to consider increasing the excess. This reduces the level of risk and cost to the insurer in the event of a claim so is likely to result in a reduced annual premium.
We get it! You’re busy and it’s super easy to allow your insurance to renew for another year without the hassle of obtaining new quotes. Unfortunately, by not shopping around, you may be paying more than you need to on your van insurance. A good broker will review your renewal quote and do the hard work for you, comparing the market for a better deal.
Most insurance policies have flexible cover options and add-ons. We’re not against these as they can be excellent value for money if they’re something you are going to use, but never pay for cover you don’t need. Always discuss these with your broker, they’d be happy to break down the quote and provide different options for your consideration.
So there you have it – a few useful tips to reduce your van insurance costs in this turbulent insurance market. If you’d like a second opinion on your insurance costs or need a quote for an upcoming renewal, speak to Quote Me Today. Established for over 15 years with a proven track record in arranging commercial, motor trade and driving school insurance solutions, we will help you find a great deal.
QMT Ashford
T: 01233 222 562
E: ashford@qmtcommercial.co.uk
QMT Canterbury
T: 01227 285 540
E: admin@quotemetoday.co.uk
