A small builder without a van is like Ant without Dec – they just don’t work on their own. Having the right insurance for your vehicle is vital to stay on the right side of the law and make sure you don’t lose work if anything happens to your van.
Here Builders Box talks you through the basics of commercial vehicle insurance and picks out our top five policy recommendations.
What cover do I need by law?
Third party insurance cover is compulsory for any small builder driving a van. This type of policy covers damage caused to “third parties” like other vehicles, pedestrians or property following a crash. This is often extended with an extra premium to cover “Third party, fire and theft” when you are also covered if your van is stolen or set on fire.
If I want to pay more, what else can I have covered?
Extra cash buys you comprehensive cover where damage to your own van is also covered after a collision. Policies can also be extended to cover the theft of your tools and equipment from your vehicle. Some companies will also temporarily replace your van with a similar vehicle while it is off the road being repaired.
Are there any hidden terms I should look out for?
Always read the small print of a policy and check the cover limits – you should be looking for at least £5 million for third party liability cover. Policies will often restrict the age limits of drivers so make sure you don’t invalidate your insurance by letting someone drive who isn’t covered. Most policies charge an excess on claims – this is an amount you pay towards any claim. They are often around the £250 mark but beware policies that try and charge too high an excess.
How much will it cost?
Insurers rate small builders in a similar way to domestic drivers. The underwriter will calculate your premium on a number of factors including age, location, profession, vehicle type and claims history. Premiums are reduced the longer you go without a claim via a No Claims Bonus.
Here are our top five places to look for commercial vehicle insurance:
Express Insurance
This online specialist compares quotes and prices with 22 leading van insurers. You fill in your details and Express sifts through all its partner firms to come up with the best quote.
The firm is currently offering all small builders a guaranteed introductory no-claims bonus of 65% and also offers full breakdown cover for days when your van refuses to start.
Direct Line
The company covers all builders vans weighing less than 3.5 tonnes for all drivers over 21. Policies ordered online currently enjoy a 10 per cent discount. Special features include named drivers on the policy being able to build-up their own no-claims bonus. Any extra company vans insured through the firm also receive a 10 per cent premium discount. Tools carried in vans are not covered under this policy.
AA
The motoring giant works with ten leading insurers to offer policies tailored for sole traders. Small builders can benefit from a no-claims discount of up to 65 per cent and 90 days automatic cover if you work abroad in any EU countries. Policies also pay out £250 to replace locks if your van keys are lost or stolen. The basic policies can also be extended to cover legal expenses and emergency van replacement.
Zurich
The insurance giant offers a full range of commercial vehicle policies with no claims discounts of up to 62.5 per cent for anyone who hasn’t made a claim in the last five years. Personal possessions up to £100 are covered in the van but a separate policy will have to be taken out to cover tools and equipment. Zurich provide a replacement courtesy vehicle when your van is being repaired after an accident.
Evan Insurance
This fully-online insurance company is claiming some of the lowest quotes in the market. Policies also offered protected no-claims bonuses – so once you reach the maximum discount of 60 per cent you never lose it, even after an accident. You can cover up to four vans on one policy and all policies come with breakdown cover for anywhere in the UK.
