Cheap van insurance

What is van insurance?

• Third-party only: The minimum legal requirement.

• Third-party, fire, and theft (TPFT): Adds protection against fire damage and theft.

• Comprehensive (fully comp): Offers the highest level of protection.

When purchasing van insurance, it’s crucial to accurately describe your occupation and how the vehicle will be used to avoid potential issues down the line.

What does van insurance cover?

Van insurance is similar to car insurance, primarily designed to protect other motorists and road users if your vehicle causes damage to their property or vehicle. Depending on your level of cover, it can also protect your van if it’s stolen, broken into, or involved in an accident.

Like cars, all vans must be insured unless they are off the road and have a Statutory Off Road Notification (SORN).

Types of van insurance cover

There are three main levels of van insurance to choose from:

1. Third-party only: This is the minimum legal requirement. It covers damage to other people’s property or vehicles but doesn’t protect your van.

2. Third-party, fire, and theft: Includes third-party cover and adds protection against fire damage and theft. For more details, read our guide Third party, fire and theft car insurance explained.

3. Comprehensive: The most extensive cover available. It includes third-party, fire, and theft coverage, plus protection for your van if you’re at fault in an accident. Comprehensive policies also often include extras like windscreen repair or replacement.

IMPORTANT MESSAGE: Do not automatically think third party, or third party, fire and theft will be the cheapest to get. Research has shown comprehensive cover can be the cheapest cover.

Five steps to getting a good deal on van insurance

Finding affordable van insurance doesn’t have to be complicated. Most of the issues for vans are identical to those for car owners, so it similarly depends on a number of factors such as the level of cover and how risky you're perceived to be based on your occupation and driving experience.

With a bit of planning and some simple steps, you can save money while ensuring you have the coverage you need. Here's how:

Step 1: Understand your coverage needs

The cost of your van insurance depends on personal factors like your occupation, driving experience, and the level of coverage you need.

There’s no “one-size-fits-all” cheapest insurer because premiums vary based on your unique circumstances. Start by understanding your coverage options and get multiple quotes quickly:

• Use comparison sites to gauge the approximate cost for the coverage you need.

• Adjust coverage details such as excess amounts or additional drivers to see how it impacts your premium.

If you're unsure about certain aspects, reading a basic guide to car insurance can help, especially when it comes to choosing the right occupation for your policy (try our Car Insurance Job Picker tool to see the riskiest jobs).

Step 2: Find the cheapest quote using comparison sites

Step 3: Check insurers that aren't on comparison sites

Some major insurers – for instance, Direct Line Van Insurance, don’t appear on comparison sites.

Check these providers directly, as they may offer competitive rates or exclusive benefits.

Step 4: Save more with cashback and haggling

Try to boost your savings by combining cashback offers or with smart haggling.

Cashback sites

If you’re familiar with cashback sites, you’ll know they earn a ‘lead fee’ for directing you to an insurer. Once the insurer pays this fee, the cashback site typically passes it on to you. In some cases, the cashback may be donated to a charity instead – this should be clearly stated, but it’s worth double-checking if you’re unsure.

Using a cashback site can sometimes be more cost-effective than relying solely on comparison sites. However, it’s wise to treat cashback as a bonus rather than a guarantee, as there are instances where the deal may not track properly, or the payout may not occur. Here are two approaches to consider:

1. Use cashback site comparisons. There's a version of Quotezone's comparison on cashback site Quidco* and Topcashback*, where you'll get £37 and £38 respectively if you buy a policy through them. But be mindful of the quotes you get as you may not get exactly the same prices – or the perks – as you would from the comparison site, and see which works out cheapest for you.
   

2. Find your cheapest insurer then go via a cashback site. Once you’ve identified your cheapest insurer – and this should always be your first step – check what cashback you or a charity could earn by purchasing through platforms like Quidco* or Topcashback*.
   

   Be sure to compare the price offered via the cashback site with the quotes you’ve already found. If it’s higher, calculate whether the cashback offsets the difference. If it doesn’t, stick with the original quotes to get the best overall deal.

   Our Top cashback sites guide has full information on how these sites work. 

Haggle with your current insurer

Step 5: Plan ahead for next year

NEVER let your policy auto-renew without comparing prices again. Insurers often offer cheaper rates to new customers than to renewing ones.

• If you reapply as a new customer with your existing insurer, you’ll likely see a better price.

• Compare quotes annually using multiple channels, including direct insurer sites and cashback platforms.

Why avoid auto-renewal?

Insurers rely on apathy, gradually increasing premiums even if your circumstances haven’t changed. Comparing quotes every year ensures you’re not overpaying.

Don't let your annual renewal policy catch you up and simply sign up for another year with the same insurer. If you apply for cover from your existing insurer as a new customer, it's likely you'll be given a cheaper price.

Plus, insurers can still charge a different price via different channels – for example, lower premiums on certain comparison sites (provided existing customers who originally came via that site are charged the same). So, always try multiple comparison sites.

Optional add-ons to consider

When it comes to additional 'optional' add-ons, these can be very useful and important when you make a claim, so they're worth considering. It is worth knowing that not all insurers offer these optional extras, but if you are interested, find an insurer who can provide the specific cover you're looking for or speak to a local BIBA registered broker.

Here are some of the add-ons available and the sort of cover to expect:

• Breakdown assistance. Some insurers include basic breakdown cover as a standard feature. However, this may not include extras like home start or onward travel. Check if upgrading the cover is more cost-effective than buying a separate breakdown policy. See our guide on top breakdown cover deals

• Courtesy vehicle. If you rely on your van for work, this ensures you’ll have access to a temporary replacement while your van is being repaired or replaced. Check the specifics, such as the type of courtesy van, the duration of availability, and whether it’s included if your van is stolen or written off.

• Legal expenses. This helps recover costs or losses you incur as a result of a claim where you weren't at fault. For example, the excess you have to pay, potentially claiming for loss of earnings or personal injury following an accident where the other driver's at fault.

• Tools and equipment. Coverage against theft for tools and equipment stored in the van, which is particularly important for tradespeople who rely on their tools for work but worth knowing it may exclude goods kept in the van overnight.

• Goods in transit. Protection for goods being transported in the van, which is essential for businesses that deliver products. Like tools and equipment cover, it may come with an overnight exclusion.

By understanding these coverage options and add-ons, you can tailor your van insurance to suit your needs while ensuring you’re fully protected on the road.

Do I need additional cover if I use my van for work?

Whether you need extra cover depends on your occupation and how you use the vehicle for work. When purchasing van insurance (also known as commercial vehicle insurance), you’ll need to choose the appropriate level of usage cover. The main categories include:

• Social and commuting: Covers personal use and commuting to a permanent workplace.
  

• Business use (carriage of own goods): Allows you to transport tools and equipment to various locations as part of your job. This applies to the policyholder and named drivers.

• Haulage (transporting goods): Covers carrying goods for other people as part of a contract, such as long-distance deliveries. This is not the same as delivery driving.
  

• Delivery/courier driver: Known as "hire and reward" cover, this is required for transporting items like parcels or food for payment. Standard motor insurance policies usually exclude this unless specifically added.
  

What other types of van insurance are there?

The type of insurance policy you need depends on the van you drive and how you use it. Here’s a breakdown of the main types of van insurance:

• Commercial/business van insurance: If you use your van for work or business, this is the policy for you. Whether you’re a builder, carpet fitter, gardener, courier, delivery driver, or even a dog walker, a commercial or business van policy will cover you for work-related use.

• Private van insurance: Not all van owners use their vehicle for work. If you use your van for personal purposes—such as hobbies or transporting items—this policy may be a better fit. Many insurers now offer cover for social, domestic, and pleasure purposes. Pro tip: Before opting for a commercial policy, try getting a car insurance quote for your van, as it may sometimes be a cheaper option.

• Temporary van insurance: If you only need van insurance for a short period, such as a few days or a month, temporary van insurance is a flexible option worth exploring.

• Pick-up truck cover: Although not technically a van, pick-up trucks are often insured under van policies. They offer the same types of cover and usage options as traditional vans.

• Fleet insurance: If you have multiple vehicles, fleet insurance can simplify things by covering all of them under one policy. For this type of cover, consider reaching out to a local BIBA-registered broker to find the best deal.

What to do if something goes wrong

First, you need to complain to your insurance company directly. If it doesn’t respond, or if you don’t like what it says, then you don’t need to just take it.

You can escalate your complaint to the free Financial Ombudsman. The ombudsman is an independent adjudicator which will make the final decision on a claim if you are locked in a dispute with your insurer. For more on how to make a complaint, read our Financial Rights guide.

Van insurance FAQs