Here at LeaseCar, we're here with you every step of the way, from choosing the right model of van, to the best contract whilst also helping you look after your new leased van throughout your leasing contract. As the UK's favourite van leasing site, we believe that everyone should have access to a plethora of great value van leasing deals, whatever their financial situation is. When choosing one of our brand new light commercial vehicles, one thing that you will need to think about is van insurance.
When you go to compare van insurance quotes, be sure to make sure you know exactly what you want from your cover. A cheap van insurance policy may appear to save you money, but if it has a high excess or doesn't properly cover you, you may end up paying more in the long run. Also, depending on the type of lease you take it out, it could change what policies are available to you.
If, for instance, you are a business who are leasing a fleet of vans, the types of insurance available will vary to those of personal hire agreements. Commercial van insurance can cover a whole fleet of vans and drivers, giving you security and peace of mind for your whole fleet of commercial vehicles.
In this guide we'll be looking at what types of insurance are available to you with your brand new leased van, what it will cover and what you want to look out for when shopping around for insurance. The more you know about insurance, the better you'll know what you want. Be sure to always look at the small print before committing to a policy, so that you know exactly what you're paying for.
Why Do I need Insurance?
It is illegal to drive a vehicle on the roads whilst not being insured to do so, you could face vehicle impounding, fines and potentially even serve jail time. You may think that you're covered for any damage to your vehicle under a van warranty and maintenance packages, insurance is not just for the vehicle you're driving. The lowest legal type of cover you can get on the road is actually to cover third parties.
This may not be news to you, but what might be is the common misconception with van leasing and insurance. A lot of people looking into van leasing may assume that with companies like LeaseCar, while you can expect excellent maintenance, add ons and manufacturers warranty, that you can also expect insurance to be included. Insurance is not included within a contract for any lease, and you are required to organise it for yourself.
Fortunately, with the development of internet insurance comparison websites, it's getting easier and easier to find the right type of insurance for you and your situation. And if you have any questions, don't hesitate to contact us at LeaseCar on 0845 259 1914, or get in touch with us online.
Basic Types of Insurance
Whether you're looking to insure a van or car, or if you're looking for individual or fleet insurance, most policies come into the three different categories. Also important to bear in mind is the other types of insurance specifically for vans and light commercial vehicles, but we'll be looking at that later.
The types of cover range from the legal minimum, which will cover anybody other than you and your vehicle should you be in an accident, to complete cover with its potential to pay out for medical costs and even tyre wear and tear replacement if required.
Third Party Insurance
This is the basic legally required insurance policy. Third party insurance covers you for the bare minimum - which is covering the costs of any third parties who may have been injured or had their vehicle damaged in an accident you were involved in. Due to this low level of cover, it is often the cheapest option as there is less to pay out for.
When leasing a van, often you will not be allowed to take out a third party insurance policy, as this poses a greater risk to the lease company should the vehicle get damaged. There is also a legal issue with the ownership of the vehicle, as you don't legally 'own' the van you're leasing until either the end of the contract or not at all - third party policies will actually often just refuse you a policy altogether.
Whilst third party may seem like a great way to save money, should you be in accident, you will be left to cover any personal costs yourself. Also worth considering is that if your leased van or commercial vehicle is stolen, vandalised, or any content is taken, then you will not be covered. For a small business this could be a devastating financial blow.
Third Party, Theft and Fire Insurance
The next step up from third party is third party, theft and fire. As you may be able to imagine, this offers the basic third party cover, but with the addition of cover for theft and fire. Essentially, this covers anything that could happen to the car except covering any damage to the vehicle through accidents and wear and tear.
Vans and commercial vehicles are one of the most stolen vehicles on the roads of the UK, so it can be an essential policy to have a van covered for any theft. Likewise these vehicles can also be more susceptible to vandalism. If this happens it could mean not only losing a vehicle for your business, but also any of the contents.
This policy is a great way to cover you for more specific problems whilst reducing the costs of fully comprehensive insurance, however, as with third party you run the risk of having to pay a high price should an accident occur. The contents of your vehicle are also not included in this cover, so if you run a logistics or courier service you'll need to look into a more specific policy.
The final most common type of policy is what is called fully comprehensive. This is the highest level of insurance cover and offers the most expensive yet holistic cover. Not only does it cover damage to your vehicle through accidents and to other third parties, but also covers theft, vandalism, and possibly the replacing of tyres should they become worn and damaged over time.
Each fully comprehensive cover offers different things, so be sure you know what to look out for when choosing. Some insurance will offer to cover your medical bills should you need extra care when in an accident, or any legal fees (this can be especially important for a business). Whilst it's the most expensive type of cover, it will also protect you for those unexpected parts of road driving.
Often when leasing a van, this will be the only possible policy that you can take out. Due to the nature of vehicle ownership when in a leasing contract, this policy can allow you to drive other vehicles, defining you as a policyholder rather than vehicle owner. Legal fee cover can also be useful within this policy should you have disputes with your contract.
Specific Van Insurance
With a general idea of the policy cover available to you when leasing a van, there are a few specialised types of insurance worth considering when getting a commercial vehicle. Pending what type of van and light commercial vehicle you lease, you may want extra cover for the particular use of a vehicle. When insuring a vehicle, often most cover will fall in a category of everyday or reasonable cover, meaning that professional use will need to be specified clearly if you want coverage for heavy lifting damage or courier insurance.
Commercial Vehicle Insurance
If a vehicle is specifically linked to your business, it may not be covered by a normal insurance policy. Due to the high mileage it means that a van is statistically more likely to be in an accident on the road, and there is a much greater risk of being stolen due to its scrap value.
Commercial Vehicle insurance simply means that you're covered for far more should anything happen as a result of it being a business vehicle. Generally, there are two types of extra insurance you should consider: courier and goods in transit. These are specifically for if you run a logistic or delivery based business.
Goods in Transit Insurance
This is a policy that will cover you for transporting either your own contents or that which belongs to others, should anything happen. If you're a courier or haulage company, you will need this sort of insurance policy. This is a broader type of insurance than courier, as it is more focussed on the contents of the van than the delivery of the goods.
This is an excellent way to cover yourself should you store business related equipment within vans and wish it to be covered should you be the victim of theft and the goods are taken.
Courier insurance is a much more specific policy aiming to cover not only the parcels and packages being delivered but also the courier themselves. Over the course of delivery a courier is exposed to a lot more risk and potential hazards than, say an office worker would be.
This can be a legal requirement when hiring couriers for your business, and also a way of giving yourself as a business and any employees peace of mind should the unthinkable happen.
If you're leasing a number of different vehicles for your company, it may be a good idea to look at fleet insurance. Whereas normally when leasing or owning a vehicle you will take out a single insurance policy on each vehicle, fleet insurance offers you the same level of cover and insurance on a whole range of vehicles for your business.
This can be a great way to save money whilst retaining the desired policy, in a sense you are bulk buying a policy for numerous vehicles. It can also allow employees to be covered for more than one of your vehicles, potentially allowing company cars for personal use and a more flexible work base that can operate a number of different types of commercial vehicle.
Van Leasing And Insurance
As you can see, there is a great deal to consider when looking for leased van insurance. Whatever your purpose, be it personal or business, you want to make sure you get peace of mind with the perfect level of cover and policy for you and your vehicle. You may find cheap van insurance when looking for van insurance quotes, but be sure to read the small print. Van insurance is not only a legal requirement but it's also vital when your vehicles are your whole business and you cannot work without them.
If you have any questions over van leasing of insurance, or you'd like to talk about our fantastic range of models and options available, please don't hesitate to contact us on 0845 259 1914 or get in touch with us online here