A van is an integral part of any tradesman’s business. It is important to insure this vital part properly. But what type of insurance is right for you?
The type and value of your van will play a significant role in determining the type of van insurance that you need. A small business may have a very small van, which might not be worth much. It is recommended to purchase 3rd party insurance for anything less than a thousand pounds. You are covered for any vehicle that is involved in a crash, but not for your vehicle. If you feel that fixing your van would be more expensive than getting a new one, this is the minimum legal requirement. You might consider getting additional coverage if you own a more valuable van. A more expensive van could be more costly to replace than to fix.
It is a good idea to determine the van’s value and the cost of replacing it if something happens. Third party van insurance is a great way to save money if your van is inexpensive and easy to replace. You might consider more comprehensive coverage if your van is likely to cost a lot to replace.
Many small-business owners rely on their tools. They often keep them in their van overnight. The loss of tools can lead to a loss of profits of up to PS3000, not to mention the business interruption.
These facts alone should make it clear that tradesmen and workers who do not have contents coverage included in their van insurance policies are insane. Maybe not, because the additional cost of covering contents may outweigh the cost to replace the van and its contents.
Imagine a 40-year-old tradesman who needed to renew his van insurance. He was looking into contents coverage for all the tools he kept in the van. The van is kept outside the house and is valued at less than PS1000. According to price comparison websites, the additional cost of contents coverage would range from PS300 to PS400 per year.
It seems obvious that van insurance should include contents coverage. To get the contents insurance, your van would need to be stolen at least four times per year. Your premiums will go up even if your van is stolen. So what’s the point in having contents insurance if your tradesman work for yourself?
It is not essential to have contents insurance for your van. But it comes down to how safe you feel about your tools. You can be sure that your van won’t get stolen if you live in an area with low car crime.
If you decide not to purchase contents coverage, a great idea is to keep the most important tools in your home to reduce the cost of replacement. It is important to look after your business, but you shouldn’t be tempted into buying coverage that you don’t need.