Tough Times For Van Owners
No matter what you use you van for – be it for work as a courier, a tradesman or as a delivery driver – you’ve probably noticed that your van insurance quotes have risen this year. We’ll get into the reasons behind the increases later, but to help you get cheap van insurance cover Coversure Redditch have put together some simple, industry-insider’s tips on how you can beat the rises and keep your costs of cover down.
Top Tips For Saving On Van Insurance
With over 50 years of experience behind us, here at Coversure Redditch we’ve learnt a thing or two about saving money on van insurance and here are our top tips for saving on your cover:
- Say yes to a higher excess – increasing your excess – the amount of money you pay before your insurance kicks in in the event of a claim – can save you on your premiums, but only consider this if you have a good claims record or it can prove a false economy
- Name your drivers – it’s tempting to go for an any-driver policy – especially if you have several people who need to drive your vehicles – but it will push the cost of cover up. So, if you can stick to named driver cover, you could save significant sums on your policy
- Use a broker – this is our standard advice but at the moment it’s even more important. Getting affordable cover in this market means knowing where to look, having the big insurer contacts that will be willing to work with you and the expertise to negotiate a great deal are vital. At Coversure Redditch we have good relationships with most of the UK’s leading van insurers so we can not only save you the time and hassle of shopping around, we can also make sure you get the cover that’s right for you
- More than one van? Get a fleet policy – if you have 2or more vehicles – be they vans, cars, bikes, trucks or a mixture of all of these then fleet insurance could be great for you. You’ll reduce the cost-per-vehicle cover, reduce the time you need to look after your cover and enjoy a great deal of policy flexibility. If you’d like to know more about our fleet insurance then get in touch with us today.
- Size matters – the bigger the van, the more expensive it is to repair, the more damage it can do in an accident and the more expensive it will be to make as good as new. Given you will have to pay for your cover every year, when choosing your van think hard about how big you really need it to be
- Security=savings – from parking your van in a garage or a secure area to adding extra security such as extra locks, making your van as secure as possible can help reduce your premiums
- Check your van policy’s small print – many comprehensive van insurance policies will come with in-built extras that you may not need. For example, many van policies come with a European cover option. If you aren’t planning to use your van abroad then this an option you can do without and save money on. If you’d like some help or a van insurance quote, just contact us now or call us on (01527) 757 585.
- Go green – want a radical suggestion for reducing not just your van premiums but the cost of running your van? Get an electric van. Electric vehicles are viable these days as our blog on electric vans shows and can save you a fortune in running costs by cutting everything from the price per mile and by avoiding congestion charging to cutting van insurance premiums and increasing reliability levels.
Why Have Prices Risen?
We’ve been asked this a lot recently – and not just by van owners, but by customers looking for cheap fleet, car and courier insurance too. There’s no one reason, but the following factors have combined to make insuring your van more expensively lately:
- Changes to the Ogden Rate – never heard of the Ogden Rate? You’re not alone. 6 months ago a lot of people in the industry hadn’t either. Put simply it’s the way compensation claims are calculated in the event of someone suffering injury in an accident. In February, the government said the rate would come down from 2.5% to -0.75%. This spooked insurers badly and in an effort to protect themselves from future claims, premiums went up. Recently, under pressure from the big insurers, the government has announced it will review its decision and the rate could be bought back up to 0-1%. This should, in theory at least, see van insurance premiums come back down.
- Brexit – the uncertainty as to what will happen next and the massive fall in the value of Sterling have made big businesses wary and they have either increased premiums or are simply not writing riskier motor business.
- Inflation – inflation is rising and is now at just under 3%. With the pound still weak and with interest rates at an all-time low, this is a problem that may be with us for a while. The Bank Of England has hinted at a rate rise soon, but that just creates a different set of headaches for van drivers and small business owners.
- Insurance Premium Tax – the Chancellor has raised this from 10-12% and there are rumours that come the 22nd of November, it will rise again. So again, renew early.
Like Some More Help Reducing Your Insurance Costs?
Things aren’t easy for van owners at the moment, so if you would like some more advice or would like some help getting the cheap van cover that’s right for you, then please get in touch. You can call us on (01527) 757 585, email us by clicking here or get a no-obligation van insurance quote here.