back to articles | November 29, 2023 | Emma Midlton

Categories: Vehicle & Buying Research

How to Choose the Right Van Insurance Policy: The Complete Guide


Thanks to their large size, interior capacity, and the ability to transport large amounts of cargo and luggage, vans become a lifesaver for their owners always and everywhere. Many van insurance providers are offering comprehensive coverage for both private and commercial vans in the United States. When researching van insurance, it is important to know a few things. First, this is the category of the van (business or private), since the insurance option will depend on this. You should also be aware of insurance obligations when considering van rental in the USA. There are many hacks for renting a cheap minivan and one of them is using your own car insurance. Check with your insurance company for details. Additionally, credit card terms may also include rental car insurance (usually from certain suppliers in certain locations). As a rule, rental prices of the best vans in the US include three basic types of cover:

  • Collision Damage Waiver
  • Theft Protection
  • Third-Party Liability

When looking for an affordable van rental, check out the insurance policy conditions as in some cases the driver is responsible for paying the excess or 100% of some repairs as well.

What Distinguishes a Private Van from a Commercial One?

For example, a company can take out private fully comprehensive van insurance or at least Third-Party Insurance if:

  • You have a large family and your van can accommodate adults and children
  • You are a big sports fan or your hobby requires constant transportation of equipment or luggage (be it skis, surfing, bicycles, or musical instruments)
  • You are a frequent participant in public events or exhibitions and you cannot do without a spacious car

If your business involves the use of a commercial van, meaning you need the vehicle to travel to and from your place of work to transport goods for sale, then commercial van insurance is a legal requirement. Check out the following list to determine what type of van coverage is right for you:

Courier Van Cover

It could be an option for those who deliver large amounts of parcels to multiple places daily. As a rule, the goods for delivery include food, clothes, cosmetic and hygiene products, etc. Determining whether this is your case is simple: if you receive income from transporting goods that do not belong to you, the law obliges you to take out car insurance. Thus, you will be covered if your vehicle is damaged (or damages another vehicle) during your working day. Please note that this option does not cover you for house moves or for transporting risky or harmful items.

Haulage cover

This policy differs from Courier as it is applied for long-distance deliveries, which are usually made to predefined locations one time a day.

Carriage of Own Goods

This cover is used by professionals who need a van to commute to their workplace and carry their own equipment and tools to work. This type of cover will ensure the safety of your belongings stored in the vehicle. If you are a construction worker and carry building materials and tools in your van day by day, or you need to commute to different places and carry personal possessions (clothes, etc.) in your van, you can consider the Carriage of Own Goods policy.

The commercial vans are typically broken down into two large categories:

  • LCV — “light van” up to 3.5 tonnes in weight
  • HCV — “heavy van” more than 3.5 tonnes in weight

How Much Should You Budget for Van Insurance?

When the company sets van insurance premiums, it takes into account the characteristics of the van, the value, and the risk it poses to other traffic participants. The cost also depends on the location of the van, in particular, statistics on accidents, thefts, and vandalism in the region. In the US, most small business customers pay about $150 monthly for business van insurance. Although one-third of drivers can purchase the cover for less than $100. In certain cases the cost increases to $200 per month. Compare van insurance policies offered by different providers to choose the most suitable one.

What Are the Minimum and the Highest Levels of Van Protection?

Insurance options are divided depending on the degree of damage that will be subject to compensation:

  • Third-party cover is the minimum insurance that every driver is required by law to have. Thus, the law protects a stranger if you injure him in the event of a collision, a stranger's car if you hit him with your car, and also your passengers in the event of an accident. Please note that the insurance company will charge a higher cost of insurance to young drivers or drivers with a criminal record since they are high-risk categories. This policy does not cover damage to your vehicle, or replace your van in case of theft.
  • Third-party, fire, and theft include all paragraphs of the above policy plus protects you if your car is stolen, or damaged by fire caused by deliberate acts, such as arson, and accidental fires as well.
  • A fully comprehensive policy gives maximum protection to you and your van in case of loss, damage, or crash, including medical expenses.

How to File a Van Insurance Claim?

In case of an accident, you need to file the van insurance claims and provide the following info to the company:

  • Personal and vehicle information of all people involved in the accident
  • Location and time of day
  • Photos of vehicle damage
  • Badge numbers of the officers responding to the incident
  • A copy of the accident report