Tiger.co.uk is continuing to emphasise the importance of feeding expert insurance knowledge to their shoppers so that they can select the best product that suits them. On this occasion the popular insurance comparison website is attempting to shed more light on some common misconceptions about van insurance.

The guide delves into the different categories of use that people should select when obtaining a van insurance quote as this is one of many rating factors that insurers will evaluate. The guide goes onto defining the cover available to van drivers, the various elements that affect the premiums customers will pay, the different types of van, their insurance groupings and any other additional insurance cover that may be required. With so many different types of vans available, business needs and policy variables finding the right level of cover for the right price can be very difficult.

The significance of van insurance is very high as Tiger.co.uk appreciates that not only the vehicle needs to be covered but also the contents of the vehicle that also carries huge significance. Businesses and consumers depend heavily on van insurance for the transportation, delivery and in some situations the ability to indemnify damaged or stolen goods so that businesses can recover their good efficiently. At a time where businesses can not afford to lose money on damaged or stolen goods, ensuring that every possible scenario is fully covered to minimise disruption to their business is paramount.

Andrew Goulborn, Commercial Director of Tiger.co.uk commented:

“Any information that we can release about van insurance will only benefit the shopper when renewing or buying a van insurance policy for the first time. We want our customers to be confident and have the peace of mind that they have purchased the correct insurance product and that their van and the contents of their van are covered. Tiger.co.uk has over 20 van insurance partners for our shoppers to choose from to find the best cover that suits them at the best price. As van insurance can be more diverse than other insurance products whether you are a mobile hairdresser or an electrician the levels of cover required can vary. We hope that this guide helps our shoppers find the best cover for their individual situation and circumstances.”

A valid van insurance policy is required for all vans that are used on the public highway. If you do not have valid insurance for your motor vehicle, it could be impounded or even scrapped.

Usage:

There are different types of van insurance to choose from and drivers need to think about how the vehicle is used before applying for van insurance.  Insurance companies base their rates upon the level of risk they associate with the use of a van so drivers need to understand the difference between the various categories that are used to describe vehicle usage. The categories are: social, domestic and pleasure use; carriage of your own goods; and haulage.

If the van is only used for social, domestic and pleasure purposes, it means that it is not used for business purposes. If, however, the van is used to haul your own supplies for your business (for example, you carry garden equipment to provide landscaping services or you are a mobile hairdresser carrying hair supplies) then this needs to be listed as the carriage of your own goods. Alternatively, if the van is used to transport other people’s goods for profit, then this should be listed as haulage – for example, the truck is used for deliveries.

If the van is to be used for business proposes it will often be described as a “commercial vehicle”. If you are not using it for business your van will often be classified in the same way as a car by insurers.

What Type of Van Insurance Cover Do You Need?

As for motor insurance, van insurance can be broken down into three cover types:

• Third Party Only (TPO) – Provides the minimum level of cover required to drive a van on the road. Cover is provided if you cause damage or injury to a third party, but no cover is provided if you suffer damage to your own vehicle.
• Third Party, Fire and Theft (TPFT) – Provides cover for loss or damage to your vehicle caused by fire, lightening, explosion, theft or attempted theft, in addition to the liability cover provided under a TPO insurance policy.
• Fully Comprehensive insurance cover – this provides cover for accidental or malicious damage to the vehicle, in addition to the cover provided under a TPFT insurance policy.

What Affects The Cost of Van Insurance?

One the main things an insurer will take in to consideration when rating (or pricing) a van for insurance cover is the intended use of the vehicle.

Generally, the premium you pay for your van insurance depends upon a range of factors including:

• Annual mileage
• The level of security protecting the vehicle
• The size and value of the vehicle
• The cost of repairing the vehicle

Types of Van and Insurance Groupings

Generally the bigger and heavier the van, the more costly the insurance premium will be.

Most insurance companies use the same five categories of van as a starting point for pricing policies:

• “Car-derived van” or combi van: This type of van looks like a car from the front but the backseats are replaced with a cargo area and the windows are filled in. Examples of this type of van are the Vauxhall Astra van and the Ford Fiesta van.
• Micro-vans: The smallest size of van and one that is not derived from a car. Examples of this type of van are a Peugeot Blipper or a Citroen Nemo.
• Small/Light vans: These vehicles have double doors at the back and a raised roof. A common example is a Ford Transit Connect.
• Medium or panel vans: Perhaps the most popular “white vans”, they have a large load capacity and include the famous Ford Transit.
• Large vans: These vehicles are capable of carrying very large loads. A popular example often used in the removal trade is the Luton van.

What other cover might be needed?

Depending upon individual needs, additional insurance products could be beneficial. Some of these are particularly useful if you are running a business. Most Fully Comprehensive van insurance policies will not cover tools carried in the vehicle but check with the insurer for confirmation of this. To ensure you are fully covered it is worth considering taking out a “goods in transit” policy which can be bought separately. Goods in transit insurance will insure your tools, materials or stock against accidental damage or theft that can happen while in transit. However you will also need to check any exclusions on the policy if you intend to leave your tools of trade in the van overnight.

It may be worth also considering legal cover, public liability insurance and breakdown cover – all of these can be found on Tiger.co.uk.

Autonet: 0800 110 5448

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Tiger Team

Yes. There are 20 different van insurance groups with those in lower groups being the cheapest to insure. The Association of British Insurers (ABI) is responsible for determining which group a vehicle is placed in and there are a few factors that affect this.

• The size and weight of the van
• The value of the van
• The cost of repairs
• How likely the vehicle is to be stolen (security levels)

Check your van’s insurance group now

Telematics-based insurance uses satellite technology to collect information on actual driving habits and bases policy prices on these rather than a series of broad driving assumptions.

Recent research carried out by Co-Operative Insurance (and highlighted on the Tiger.co.uk site) revealed that the 17 to 25 year old drivers that have bought the Co-Op’s telematics-based motor insurance product are 20% less likely to be involved in accidents than drivers of the same age with a “normal” policy. And, furthermore, that the accidents that they are involved in tend to be much less serious, with levels of claims being about 30% lower.

We’ve been actively promoting telematics products on Tiger.co.uk over the last 18 months, to the point that now about one in seven policies sold through Tiger.co.uk are to one of the four telematics insurance providers that feature on the site. Given that we expect to add another six insurers to our panel over the rest of 2012 you can see that this figure is only going one way.

So from where we’re sitting, telematics policies are becoming more and more popular. We’re forecasting that, by the end of 2012, over 20% of policies sold through Tiger.co.uk will be for these “black box” products. In the future we will undoubtedly see this number increase as car manufacturers start to build these boxes into most or all new cars. And it’s not just very young drivers who are finding that telematics policies can be much cheaper than “standard” policies. Over 80% of the policies sold through Tiger.co.uk in the last year have been to over 25 year olds.

What we are less sure about now is whether having a telematics device fitted to a car actually makes the driver safer. More likely, it’s the safer drivers amongst us who are more confident about having their driving performance – warts and all – continuously monitored. But does it matter? Not if drivers are finding that this kind of insurance policy can produce substantial savings to their annual premiums.

To find out more about telematics-based insurance you can check out our Guide to Telematics Car Insurance.

In April 2011 the Continuous Insurance Enforcement (CIE) was introduced which means that it is now compulsory to have constant insurance in place on any vehicle unless you have completed a Statutory Off Road Notification (SORN).

This is applicable to both cars and motorbikes, but is possibly less well documented for motorcycles. Motorcycle owners who take their vehicles off the road for periods without insurance (for example, if the vehicle is garaged over the winter months), have a legal requirement to register the bike as off road with the DVLA. If a motorbike is found to be off road without insurance in place, and is not listed with the DVLA as having a SORN, the DVLA has authority to carry out enforcement action against the owner.

The survey found that 8 percent of the 3,500 classic vehicle owners surveyed did not know what action to take when taking a car or bike off the road – a worrying statistic for insured drivers as uninsured motorists are reported to be costing other drivers in the region of £380 million per year.*

Andrew Goulborn, Commercial Director for car and motorbike insurance comparison site Tiger.co.uk commented: “The CIE rules that any vehicle registered within the UK has to be covered by third party insurance as a minimum or declared off road with a SORN. This is particularly important to note for motorbike riders and owners of classic vehicles as these motorists tend to take their vehicles off road for periods of time for restoration work or garaging during the colder months. The advice is that if you intend to drive on roads within the UK stay insured, if you are not and you have not made a SORN then you could face penalties. Using a comparison site like Tiger.co.uk to shop around for your insurance can save you money. Tiger.co.uk offers motorbike insurance quotes from over 35 brands so there are plenty of opportunities to get a good deal!”

* Source direct.gov.uk

You can change a name, address and gender on a UK driving licence by post. To change the address on your licence all you need to do is complete the changes section of the paper part of your licence, date it and sign it. Return the paper counterpart document along with your photo card to the DVLA, Swansea SA99 1BN. For more details visit direct.gov.uk.

Telematics or “black box” motor insurance products use satellite technology to collect data on the actual driving habits of motorists looking at areas such as, braking, acceleration and what time of day a vehicle is driven. This data is then used to calculate motor insurance premiums.

The analysis, carried out by Co-operative Insurance, looked at 10,000 telematics insurance customers aged between 17 and 25 and revealed that this group were 20% less likely to be involved in a car crash than drivers with a standard policy. It also appears that drivers who choose to take out telematics based insurance have less serious accidents, as insurance claims from customers with a telematics box fitted are typically 30% less than those without.

Telematics based insurance was initially introduced in 2006 by Aviva. Back then the technology was still relatively new and quite costly to install. Since that time many more insurers have begun to introduce these products and car insurance comparison site Tiger.co.uk has been quick to make sure it can offer a range of these products to its shoppers.

Andrew Goulborn, Commercial Director for the site commented: “It is good to hear that telematics based insurance seems to be encouraging better driving behavior among younger drivers. As evidenced by some analysis we carried out in April this year, this type of product appears to be gaining popularity not only among younger drivers, but across the driving population as a whole. Almost 15% of policy sales through our site are now accounted for by telematics products. The industry is predicting that the growth of these products is set to continue and as a comparison site we intend to keep on top of developments in this area and continue to offer shoppers a wide range of products. We are pleased to say that we can provide car insurance quotes from four telematics insurance providers on Tiger.co.uk currently and are in discussion with a further six providers about the potential of introducing their brands over the coming year.”

The information you provide to us in the quote form goes in to your motor insurance policy documentation. If you have chosen not to be contacted by third parties in your privacy options we will not share this information with third parties.