How to Get Cheap Van Insurance: Practical Tips

With so many things costing an arm and a leg these days, trying to keep your business overheads down can feel like an uphill struggle. If you have a van (which is highly likely if you’re reading this article), your insurance costs might well be one of them.

According to various sources, van insurance for businesses in the UK currently costs between £765 and £1491, with £500- £999 generally considered the average. That’s a wide range, reflecting how premiums depend on a variety of factors.

But the upshot is this: even at the lower end, it still costs a pretty penny to insure your van - much more so than it used to. 

Studies have found that van insurance rose by over a third between 2022 and 2023, and whilst premiums have dropped slightly since then, indicators suggest they may be on the rise once again.

So, can anything be done to lower these costs?

The good news is that the simple answer to this question is: yes! But, at the same time, it all depends on how you’re using your van, and what for. 

To give you a proper overview of why van insurance costs what it does, and how you can potentially lower the price for your company, we’ve put together a guide filled with useful details and practical tips. Let’s begin.

What affects van insurance costs?

First things first: what affects van insurance costs? Why does it cost what it does, and why is there so much variation?

Simply put, a whole load of things. When insurance companies are calculating your premium, they consider a wide range of factors that influence the final figure - largely focusing on things like risk, usage, and the sort of coverage you want.

Let’s break these down for a more detailed look:

Why is van insurance expensive?

We’ve covered what impacts van insurance premiums. But why does van insurance feel particularly expensive at the moment?

As you’ve probably already guessed, there are a lot of different reasons. Some are related to the current economic climate, others to the risks inherent in the vans themselves.

If you compare how a car is typically used to how a van is used, vans are often used far more intensively, regularly driven long distances in busy urban areas, often for work and frequently during peak traffic hours. 

All of these factors mean that they are on the road for much longer, and thus the risk of accidents - and therefore claims being made - is much higher. At the end of the day, it’s all about the insurers' business models.

Vans used for commercial purposes are also at a higher risk because they carry valuable goods (whether equipment, tools, or cargo). These make them a tempting target for thieves, which, in turn, increases those premiums.  

And since commercial vans often operate on tight delivery schedules, the likelihood of on-the-road incidents increases, adding another layer of risk.

The economic climate, as we noted earlier, also plays a role. Repairs cost more than they used to due to a combination of higher labour costs and rising part prices. Plus, there’s the impact of inflation and constant changes in the overall insurance market. 

These economic influences, on top of everything else, are making van insurance feel pretty expensive at the moment.

How can I make my van insurance cheaper?

Now we’ve got the context, the ‘whys’ and the ‘hows’ out of the way. Onto the good stuff! Let’s look at seven practical ways to lower your van insurance premiums:

1. Increase your voluntary excess

The first recommendation is to increase the voluntary excess on your policy, but only if it's affordable and realistic for you and your business. This means that if you need to file a claim with your insurance, you pay a certain amount out of pocket for repairs. From the insurer’s perspective, you are a lower risk, as if any claims are made, they’re contractually obligated to pay less.

2. Improve your van security

This one might seem obvious, but ensuring your van is as secure as possible can reduce your premiums. That could mean installing dashcams, deadlocks, slamlocks, catalytic converter locks, safe boxes for your tools or an immobiliser, as well as adding signage to your van and parking it where there’s CCTV (even better if in a garage). Think of anything that’ll prevent theft!

3. Limit your annual mileage

Whilst not doable for everyone, from an insurer’s perspective, the less time you’re on the road, the lower the risk of you being in an accident. If you’re able to lower your annual mileage, there’s a good chance your insurance premiums will go down.

4. Build up a no-claims bonus over time

Probably the best way to reduce your insurance premiums is to build a no-claims bonus (NCB). Insurers reward safe drivers, and the longer you don’t have to make a claim, the more likely your yearly insurance price will be discounted. There’s usually a cap after five years at around a 65-70% discount. You can even install a black box, or telematics system, to send data about your driving to your insurer. Of course, some claims can’t be avoided, but driving carefully can help keep incidents to a minimum.

5. Compare insurance policy quotes each year

A useful way to avoid yearly price hikes is to compare van insurance quotes each year and switch to a more affordable, competitively priced plan. Loyalty with insurers doesn’t always mean consistent pricing, and you might get caught out with annual increases, especially with auto-renewal plans. The good news is that when you switch insurance policies, you can take your NCB with you!

6. Pay your insurance annually instead of monthly

There’s a chance that if you pay your insurance monthly rather than annually, you’ll be charged interest and admin fees. This is because you’re effectively ‘taking out a loan’. If you can pay annually upfront, you’re just paying the premium itself. This may not work for everyone and depends on your current cash flow position. But it’s worth spending the time evaluating whether it’s an option for you and your business.

7. Avoid unnecessary modifications to your van

Whilst signwriting can actually lower your insurance premiums, other modifications don’t necessarily do the same. Avoiding ‘unnecessary’ modifications in this case means changes that increase the chance of theft or an accident. Installing things like metal alloys, tinted windows, and engine performance enhancements can all drive up your insurance premiums.

Insurance-Saving Tips from the DriveSimple Team

"Considering all the options in this guide can add up to meaningful savings on your van insurance. Drive a little safer, park somewhere a bit more secure, and spend an extra hour or two shopping around for the best rates every year. You might be surprised!"

Van Insurance FAQs

Can you insure a van without business insurance?

You can insure a van without business insurance, but only if you are using it for personal use. This extends to commuting to a fixed workplace, but for anything else work or business-related, business insurance is the way to go. Choosing the wrong insurance package increases the risk of rejected claims, fines, licence penalties, and potential vehicle seizures. Plus, any future premiums will spike. It’s just not worth it.

Can I ask my insurance company to lower my premium?

Yes, you can definitely ask your insurers to lower your premium, and it’s worth a try. Insurers will want to keep as many of their customers as possible, so asking for cheaper options and different ways you can lower your premium may work in your favour. Even if they’re unable to offer you a lower price, there may be changes you can make to your policy, including changing your excess, improving your van security, and removing any add-ons that you might have.

Does DriveSimple provide van insurance?

At the moment, DriveSimple doesn’t offer van insurance policies or any protection packages. However, we know the importance of getting a good deal. When you onboard with us, we can put you in touch with specialist insurance brokers if you’d like. (Please note, we may make a commission on any referrals made.)

To sum up

Getting a good deal on your van insurance can dramatically reduce your overheads. Although things are a little pricer than they used to be, there are still ways that you can lower your premiums. Some of these will be more suitable for certain use cases than others, so spend time researching them and consider which ones might work well for you.