What are Excess Mileage and Excess Damage Charges and How to Avoid Them
Your funder can charge you for exceeding your quoted mileage and damaging your vehicle beyond what is considered ‘Fair Wear & Tear’. These […]
October 19th, 2021
Ensuring your vehicle is protected is important and the right commercial van insurance could save you money in the long run.
Taking out commercial van insurance helps to protect your business’ investment in the vehicle. We’ve put together this quick guide so that you can make the right decisions when taking out business van insurance on your lease vehicle.
You will often find that a van leasing company will offer extras such as servicing and road tax included in your lease – however this is not the case with insurance. As you will be the person using the vehicle for the length of your business van lease, you will be responsible for making sure it is insured.
When leasing a van, you will need to ensure that it is covered by a Fully Comprehensive insurance policy. This is to protect both you and the finance company funding your lease in the event of unexpected costs from an accident or incident.
For commercial van insurance, the person leasing the vehicle will also need to be the insurance policy holder or a named driver on the policy.
You will be notified by your van leasing company when all financial agreements are complete – you will then be asked to insure the vehicle and provide proof of this (in the form on an insurance certificate) before your vehicle is delivered.
Any major van leasing company will likely have Insurance Partners who they will be able to recommend to you. These are generally specialised so that they can give you great deals on commercial van insurance – whatever your vehicle or specifications.
There are three types of Commercial Van Insurance – which is best for you, depends on your business.
Carriage of own goods: This encompasses businesses (sole trader and limited companies) as it covers the transportation of tools and items necessary to carry out your business.
Haulage: This generally refers to long distance delivery drivers.
Carriage of goods for hire or reward: This covers couriers or other delivery drivers who transport other people’s goods for payment over short distances.
Rather than a private van insurance policy, sole trader and commercial van insurance mean you can use your vehicle for business, and personal use.
You may also want to add extras to your policy – for example tool and contents insurance to protect your livelihood.
There are a couple of things to be aware of when you’re insuring a lease vehicle for your business.
To learn more about commercial van insurance for sole traders, check out our Insurance Partners. To talk to one of our van specialists about leasing deals just call 0117 962 5314
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