Van insurance: your uSwitch guide

Use this page to find essential information about van insurance in the UK.

For more information about some of the terms we use, click on the highlighted words or see our Van insurance glossary

To find out how you could save money on your van cover compare van insurers now.

Van insurance is a legal requirement under the Road Traffic Act. A vehicle on the road must have insurance to protect other road users in the event of an accident, but it can also provide peace of mind by protecting your vehicle and its driver.

Your van or vans are likely to be an important part of your business, so it makes sense to protect them by taking out appropriate van insurance.

You are breaking the law if you don't have insurance for your van. The law requires you to insure against the possibility of you injuring another person or their property.

If you don't have van insurance you could face a fine and penalty points on your licence which could lead to you being banned from driving. You could also suffer financial loss if you are involved in an accident.

There are 3 different levels of UK van insurance: third party, third party, fire and theft, and fully comprehensive van cover.

Third party van cover is the cheapest van insurance and the minimum required by law. It covers your liability for damage to someone else's vehicle or property and injury to someone else if your van is involved in an accident, but it doesn't cover damage, loss or theft of your van.

Third party, fire and theft van insurance offers the same cover as third party van insurance but it also covers the cost of repairing or replacing your van if it's stolen or damaged by fire.

Fully comprehensive van insurance is the most expensive but most inclusive cover you can buy. It includes third party, fire and theft van insurance and also pays for repairs to your van if it is involved in an accident.

Comprehensive van insurance policies may also include extras such as cover for personal belongings left in your van, medical and legal expenses cover and a replacement van if your vehicle is off the road.

The premium you pay for van insurance will depend on a wide range of factors including:

• the make, model, engine size and value of your van
• security for your van
• your mileage
• what you intend to use the van for

Insurers also take into account your address and who will be driving the van and their age and driving record, including any previous accidents, claims and driving convictions.

Find the best deal for you - compare van insurance quotes with uSwitch.

If you've been driving for some time without making a claim on your van insurance, you may be entitled to a no-claims bonus. This is a discount on the cost of your van insurance reflecting the fact that the insurance company sees you as a safer driver and, therefore, less of a risk.

Compare van insurance quotes for no-claims discounts with uSwitch.

If you have a number of years with no claims, some insurers will allow you to protect your no-claims bonus for a small additional premium. This means you can make one or more claims within a set time without losing any of your discount.

All van insurance policies will expect you to pay the first part of any claim. This is known as a compulsory excess. How much this will be will depend on the individual policy and on the claim.

You may be able to reduce the cost of your van insurance by paying a higher voluntary excess, in addition to the compulsory excess. Generally speaking the higher the excess you agree to pay, the cheaper your premium.

There are several ways to cut your van insurance premiums:

• compare van insurance deals with uSwitch
• fit an alarm and immobiliser
• choose an older vehicle or one with a less powerful engine

Some insurers will give a discount if you can show you have experience driving other company vehicles while others will mirror any no-claims bonus you have built up driving a car.

Comprehensive van insurance may cover you up to a certain amount for tools carried in your van. If you have a lower level of van cover, such as third party, or your tools are particularly valuable, you'll need to take out additional cover.

Similarly, if you carry goods in your van, you'll have to take out cover specifically for them.

It depends on the policy you choose. If your van is involved in an accident and is off the road being repaired your business could lose out, so it's worth considering a van insurance policy that provides a replacement vehicle.

When choosing van insurance you might want to look for a policy that includes:

• legal assistance to cover legal costs that could follow an accident.
• breakdown cover
• insurance for the tools of your trade or goods carried in your van
• no-claims discount protection
• European cover, if you intend to drive your van abroad

Certificate of Insurance
The certificate is a document that proves you have valid van insurance. It includes who can drive your van and what it can be used for.

Claim
This is the formal application you make to your insurer for payment under your policy.

Compulsory excess
The compulsory excess is the amount your insurer insists requires you to pay towards each claim.

Cover
The risks your van insurance policy protects you against.

Cover type
Third party, third party, fire and theft or fully comprehensive.

Excess
The amount you agree to pay of each claim.
See Compulsory excess/Voluntary excess.

Exclusion
An event or circumstance in which the insurance company does not have to pay out under the policy.

Fully comprehensive insurance
The most inclusive van insurance cover available. As well as protecting you from liability to other people and their property, it covers the cost of repairing or replacing your vehicle whether you are at fault or not.

Insurance schedule
The insurance schedule is a document that gives details of the cover you have and information that you have given your insurer.

Insured
The person whose vehicle is insured, also called the policyholder.

Insurer
The organisation that issues the insurance policy and pays any claims in exchange for an insurance premium.

Market value
The cost of replacing your van with another of the same make and model, and of a similar age and condition, at the time of the accident or loss.

No-claims bonus/discount
A discount on your premium if you have driven for a length of time without making a claim on your insurance.

Policy
The document setting out the legal rights and obligations of you and your insurer.

Policy holder
The person whose van is insured.

Premium
The amount you pay for your insurance.

Protected no-claims bonus or no-claims discount
If you have a number of years no-claims bonus then you may be able to pay an extra amount and not lose your discount if you make a claim.

Renewal notice
The notice sent by the insurer to you as the policyholder inviting you to renew your policy.

Sum insured
The total amount for which the vehicle is insured.

Third party insurance
The basic van insurance required by law. Third party only covers your liability for death or injury to someone else and your liability for damage to someone else's property.

Third party, fire and theft insurance
Similar to third party insurance but third party, fire and theft also pays compensation if your vehicle is damaged by fire or is stolen.

Voluntary excess
An additional amount you can opt to pay towards a claim in order to cut the cost of your premium.