Nowadays, van insurance can be a major expense for businesses. Choosing the right van to meet a business’ needs can make a big difference to the cost of van insurance.
When providing van insurance quotes, insurance companies classify vans into 50 groups; 1 being the lowest risk and 50 the highest. In general, the lower the group a van is in, the lower the insurance costs will be.
What Determines a Van’s Insurance Group?
The insurance group that a van is placed in is determined by a number of factors.
• Van Size: In general, larger, heavier vans are considered to be harder to drive. This is because of the impact size has on steering. Larger vans are usually in higher insurance groups than smaller ones.
• Cost of Repairs: In general, a van that costs less to repair will be cheaper to insure. Older, cheaper vans can sometimes cost more to repair because spare parts are not readily available.
• Van Security: Insurance companies see vans which contain a lot of security devices are less likely to be stolen. Therefore, vans which have features like alarms or immobilisers are usually in lower insurance groups.
Insurance Groups and Cheap Insurance
In order to get cheap van insurance, look for a van that’s in a lower insurance group. This is particularly important for drivers that are considered to be higher risk, such as young or convicted drivers.
Always remember when arranging your van insurance, it is important you provide accurate information to ensure any claim you need to make will be paid for as incorrect information may result in a claim being refused.