Van Insurance Comparison Site
How Van Insurance is Calculated
To drive a van in the UK there is a legal requirement that you have van insurance. Since you want to save money whenever possible on expenses it stands to reason that you would want to understand how the quotes are calculated. By understanding van insurance calculations you can find the best product for you. Before launching into a full explanation we’ll look at a couple of other factors you should know.
A van insurance policy covers any van under 3.5 tonnes. There are three types of van cover that will decide how the quotes need to be examined and how they will be calculated. Third party only van insurance is the most basic type of insurance provided to you. It will cover your liability for bodily injury or death to others and their property. Third party fire and theft is a second option with more cover. It covers any theft damage or risk of fire to your vehicle. It also covers the contents of your vehicle. Comprehensive cover is the most helpful. It will cover loss or damage to the vehicle from accident or vandalism. Most van insurance companies also offer personal accident benefit if you are injured or die in an accident.
Given the three types of insurance, you should know that the more cover you have the more costly the insurance. This is why the types of insurance matter during the calculation process. Van insurance companies will classify vehicles into groups. There is a 20 group rating system for car insurance and van insurance is similar. The insurance company will rate each van with a number that is between one and 20. The number assigned determines the risk the company believes there is. The higher the number on your van the riskier the company believes it is.
The lower the number and thus the group, the lower your van insurance which means those who enjoy cheap van insurance find themselves in the low risk category. The groups are chosen based on statistics. Most insurance companies will examine accident history rates for that make and model of van. They will also assess the typical costs of repairing said vehicle should an accident occur.
Larger and heavier vans tend to be harder to drive and expensive when repaired. Given this typical history these types of vans are often quoted with a higher price. There are also five categories that insurance companies look at as a starting point for the calculation: car derived, micro, small, medium, and large vans. Since the size is a factor including the type of engine and whether it is manual or automatic these factors go into the calculation too. Security is another measure of importance when it comes to the calculation.
There are tips to help you find cheaper van insurance once you learn how van insurance is calculated. For example you could downsize your van to get one that better suits your needs and saves you money on the van insurance you obtain.