Everything You Need to Know About Commercial Van Insurance

Commercial van insurance causes a lot of confusion amongst potential buyers. When you’re on the hunt for this type of insurance you may find yourself getting confused with standard cover and public liability insurance. Insurance policies can be initially difficult to navigate however after some brief research you’ll find yourself ready to source cover. At insuremyvan.ie we believe it’s vital that anyone looking for van insurance is completely equipped with all the knowledge and facts necessary before they purchase a policy. We’re making it our business to lay out all the facts and tips in a coherent and easy to read manner to ensure all van owners know what’s what!

Before we even delve into insurance you might be wondering what a commercial van is. A vehicle is considered to be commercial if its main purpose is to transport goods or materials as opposed to passengers. While naturally, many commercial vehicles have two or three seats designed for carrying workers, they typically have a stow area for the transport of work materials.

For example, if you are a tradesperson who uses your van to transport equipment to and from work daily, you or your company will require commercial van insurance. This will cover you and your company from the risk of accidents or theft to your goods. If you merely use your van to deliver you safely to and from work, then personal cover will be more in your line. So that should help you decipher if you need commercial van insurance or private insurance.

So, what is all this talk about commercial van insurance and why is it so important?

1. Because it’s a legal requirement

One of the most primitive reasons to take out van insurance is simply because it is a legal requirement to drive on Irish roads. If you do not have basic insurance for your van and you are stopped by the guards, this could result in very hefty fine of up to €5,000, 5 penalty points on your licence and at the discretion of an Irish court, a term of imprisonment for up to 6 months. If you are unlucky enough to experience a crash and you are found to not have van insurance in place, then you will be solely responsible for all the damage done to your own van and for any damage done to another road users’ car, in addition to the repercussions which we have mentioned above.

As a van driver you must always be prepared for the unexpected. Accidents happen on Irish roads every single day. The winter weather we are experiencing right now lays testament to all the dangers we face on the road. Vans are no less susceptible to accidents than cars. While travelling to or from work you do not want to have an accident and suddenly find that you or your business is financially responsible for a huge amount damage.

Vans are expensive to repair and even more expensive to replace, so you want to ensure that if your best and safest efforts on the road fail, you are covered financially.

2. To protect tools and machinery

You also want to ensure that if you have important tools and machinery in your van that are essential for your business and are expensive to purchase, they are kept safe. Theft of tools and machinery is common because their resale value is high, hence why they are popular to steal. By having the right insurance in place, you will have financial security if the worst happens.

3. Compensation culture

An additional reason which we are expected to see a return of in 2021, is compensation culture. Unfortunately, road users have never been so susceptible to misleading claims then they are now. According to MW Keller and Sons, a well known law practice, it is apparent that the incentive for people in Ireland to take claims in circumstances where injuries or damage may not be worthy of the compensation requested or even compensation at all is common. Currently, Ireland compensates people who are successful in personal injury claims at a far higher rate than in the UK.

In a study recently carried out by the CFM group 4 in 10 young people surveyed said they knew someone who had made a false claim. Johnathon Hehir, managing director of business insurer CFM has stated the following: ‘the crux of matter is, the higher the cost of claims, the higher the premium the business, or employer is charged.

With this unsettling trend is still being tackled, we can expect to see the high rates of claims, maintained for the time being. This is one of the reasons why it is vital to have the appropriate insurance. You do not want to be caught without cover in the event of having even a minor accident as you will be entirely responsible for the damage should you be held accountable. This could see your rate of insurance after, skyrocket due to your original negligence.

Does commercial van insurance cover everything or will I need extras?

All van insurance is different, you want to have the cover and policy that best suits your needs. While commercial van insurance will offer you the standard cover for your van plus a range of necessary extras, if you feel like you need more from your policy, you should discuss it with your broker.

Consider replacement van hire costs, replacement locks and various other typical extras, if you feel like these are necessary for you then ask your broker at CFM who will be happy to answer your questions and assist you with additional aspects of your policy.

Something to note:

In the current market, van drivers and business owners are undoubtedly under pressure financially. Covid-19 has impacted businesses nationwide, however if you still have vans operating on the road be it for trades work or deliveries for example, it is crucial to ensure that you have the right insurance in place. Commercial van insurance will give you and your colleagues peace of mind on the road. It will also protect the vehicles and the equipment that are so necessary for the business you run.

For all your commercial van insurance needs, contact insuremyvan.ie where we can ensure that you receive the policies and cover you need and all at the best price possible.