Van insurance for the Self-Employed

If you’re newly self-employed, saving money on your start-up costs is going to be high on the agenda. Since you can’t avoid getting Self Employed Van insurance, getting a good deal is the next best thing. You’ll also want peace of mind knowing that your business and your livelihood is protected should the worst happen. Use Vancompare.com to quickly compare quotes in minutes, helping keep your business overheads lower.


Do I need Self Employed Van insurance?

In short, yes. If you are going to be driving a Van as part of your daily business activities, you’re going to need an insurance policy that specifically covers you on a commercial level. This type of policy is going to be somewhat different from any personal insurance you may have and can get a little complex depending on what type of business you conduct.

If you are using your Van for business but not under a self-employed or business policy, you won’t be protected in the event you have an accident, or the Van is stolen. You also won’t be covered for any loss, damage or theft of your tools or any goods you’re delivering. Furthermore, you may be liable for costs if you cause damage to a third-party vehicle or injure someone with your Van.

What are the options for self employed Van insurance?

The type of Van insurance you need when self-employed will largely depend on what your business activities entail. There are big differences in the types of Van insurance you’ll need for different business classes of use.

  • Providing a service

    If you work as a service provider, for example a Plumber, Builder or Electrician, you will need what’s known as “carriage of own goods”. This type of policy is required when you are transporting your own goods in your Van, for example, your tools. Additional tool insurance can also be purchased to further enhance your level of cover.

  • Delivering Goods

    If you are delivering goods which you don’t own, you need a policy that will cover you for “carriage of goods for hire & reward”. In simply terms, this type of policy is needed when you get paid to deliver goods that you don’t own and is usually referred to as Courier insurance.

  • Food Service

    If you plan to use your Van for proving food service, for example an Ice Cream Van or fast food truck, you’ll need to declare this as a separate class of use. As this is classed as specialist Van insurance, not every company will be able to offer you cover and your options will be slightly more limited.

Do I need public liability insurance?

It’s a good idea to make sure that you are covered for any public liability. For instance, if the goods you are carrying fall out and damage someone’s property or if you injure a member of the public whilst conducting your business, you will need to have a policy in place that will support you financially in the event of any claim against you.

Does self employed Van insurance have VAT added?

Value added tax (VAT) isn’t usually added to commercial insurance policies. Instead you will see an Insurance Premium Tax (IPT) which will be summarised in your quotation breakdown. Insurance premium tax is calculated at 12% which is lower than the current rate of VAT at 20%.

How to save money on self-employed Van insurance?

Saving money on your Self-employed Van insurance policy is important, especially considering all the other costs a small business has to endure. There are a few things you can do to help keep your insurance costs low. For more information, we’ve prepared a handy guide on how to lower the cost of Van insurance.

  • Your Van

    Think about the size of your van. Is it fit for the business you conduct? If you don’t need a big Van with a large, powerful engine, then don’t buy one. Bigger Vans simply mean bigger risk in the eyes of an insurance company.

  • Modifications

    Don’t modify your Vans looks or performance. Modifying anything from its original factory condition is certain to push your premiums up.

  • Voluntary Excess

    Consider increasing your voluntary excess. This can help reduce your annual premium, but make sure its affordable should you need to make a claim.

  • No Claims Bonus

    Drive like a saint and build up your no claims bonus. This is guaranteed to bring down the price of your renewal.

  • Keep Mileage Low

    the less time you spend on the road, the less likely you are to have an accident. Limiting your annual mileage can help lower the cost of your premium.

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