10 Things To Consider When Insuring A Van (Updated In 2024)
Vans are getting ever more popular amongst motorists as an alternative to cars. This is because many people nowadays are spending more time on the roads, whether for work or personal purposes. Vans make it easy to haul large loads that a car would otherwise not be able to. However, are they worth it in terms of the insurance cost?
Vans can be relatively cheap to insure, although they will typically be slightly more expensive than standard motor vehicles to insure. Factors that contribute to a van’s expensive or cheap insurance are its engine size, weight, extra features, aftermarket modifications, and the cost of repair and parts.
If you are looking to understand if a van is cheap or expensive to insure and want to know the contributing factors towards them and whether you can accommodate them to lower your van insurance, you have come to the right place.
Are vans cheap or expensive to insure?
Although many insurance companies have various criteria for evaluating how much a van can be insured for, there are times when you can insure a van for a relatively low cost. However, they are typically more expensive to insure than your traditional motor vehicles such as sedans, hatchbacks, and the like.
One of the major contributing factors to this is that they usually have more powerful engines, and hence there is an increase in the crash risk factor.
This is also compounded by many individuals who seek to purchase a van, and are inexperienced or unskilled van drivers. This is one subjective criterion as to why van insurance is higher than car insurance.
These two factors are not the only criteria, so let’s look at what else insurance companies base van insurance premiums on.
On what criteria are vans insured?
Besides subjective criteria that insurances companies factor into van insurance, there are tangible ones which we will discuss below. If you can compensate for any of these factors, you will be able to lower your van insurance considerably.
1. Van size
Without a doubt, the larger the van in terms of size and capacity, the more expensive it will be to insure. This means you should opt to purchase a small van for catering to your specific needs rather than going out and getting the biggest one out there.
Remember that larger vans take up more road surface area and obstruct your view and other motorists on the road. As such, this is a severe crash risk factor.
2. Extra features
As with every other motor vehicle on the road today, a van will have the possibility of coming with extras. This means it could have a fancy leather interior, an infotainment system, electric windows, mags on the wheels, etc.
All these additional extra features will increase your premium price to a noticeable degree. Hence, if you are looking for a van to just get a job done, look for one with the fewest features on it.
3. Engine size
The larger and stronger the engine’s horsepower and torque, the more expensive the insurance on the van will be. Vans will typically have more robust engines than cars, so depending on your work and haul load for the van, you are better off getting the smallest engine you can.
Remember that larger and more capable engines mean that the top speed will be increased, which is a crash risk factor for some insurance companies.
A bonus when obtaining a van with a smaller engine is that it will not only lower your insurance but it will benefit your fuel economy. However, that catch is that if you get an engine that is too weak for your needs, that will increase your fuel consumption when driving with a load that puts strain on the engine.
4. Aftermarket modifications
Insurance companies like to keep things nice and neat and frown upon insuring vehicles with aftermarket modifications. The same applies to vans. Now your van will most likely not come with a turbo or aftermarket exhaust; however, you will need to consider any interior modifications you make, such as installing racks, shelves, bins, etc.
Any aftermarket modifications to a van will lower its book values and probably increase the insurance cost.
5. Van weight
The van’s weight plays a bigger role in insurance premiums than you think. Lighter vans will typically have lower insurance premiums than heavier ones. This is because heavier vans are more challenging to drive and require more skill.
6. Cost of repairs and parts
The more expensive the cost of repairs and parts are for a van, the higher the insurance premiums will be. If you consider this with standard vehicles, you will see that it is also true.
It would help if you understood that the insurance company would have to pay for these costs if anything should happen to the van.
Thus it is better to get the most reliable and affordable van instead of going for a famous brand.
Other factors that affect the insurance cost of vans
We discussed all the tangible factors that insurance companies consider when deciding on how much to insure a van for. We also touched on the subjective factor on the driver that could also impact the van’s insurance premium. Let’s take a look at a few more of these subjective factors.
1. Security
Security in terms of alarm systems, tracking, and such will drastically impact the insurance on vans. The safer the vehicle is, the less you will need to pay on your insurance.
Thus, you should ensure that you have obtained and installed all the security features you can before trying to insure your van.
2. Age of driver
The driver’s age plays a large role for insurance when it comes to any motor vehicle, and again vans are no exception. Insurance companies typically charge more for insurance for younger drivers and if you need to insure it for a third party.
Individuals in their teens and twenties are usually considered high-risk factors while being between 30 and 50 years of age is optimal.
3. Location of van residence
Where you plan to park and keep your van may be problematic for some insurance companies. This is not always the case and may be considered by some and not all insurance companies.
If you happen to live in an area with an elevated crime rate or plan to drive through such areas, your insurance premium may be increased because of it.
4. Your claim history
The last factor you will need to consider is your previous insurance history. Suppose you have previously claimed or had incidents regarding motor vehicles where your insurance company had to payout. In that case, your premiums will likely be increased no matter if you consider all the elements we have previously discussed.
What is the cheapest van to insure?
Although detailing a list of all the cheapest vans to insure is beyond the scope of this article. We have provided you with a link to the top ten cheapest vans to insure.
Conclusion
We discovered that indeed vans could be cheap to insure if you consider the various facets that make them a high-risk factor and then work around them. These include tangible factors such as weight, engine size, extra features, aftermarket modifications, and the rest.
We also realized that besides tangible factors that could raise the insurance of a van, there are subjective ones, like claim history and age. Remember that for the most part, although vans can be relatively cheap to insure depending, motor vehicles, in general, will be cheaper, so make sure you opt for one that suits your needs perfectly.
For more articles like this, visit us on Transport Executive website.
References
- https://getjerry.com/car-insurance/cheapest-van-to-insure
- https://www.lv.com/van-insurance/guide-to-the-cheapest-vans-to-insure
- https://www.thevaninsurer.co.uk/insurance-guides/whats-the-cheapest-van-to-insure/
- https://www.vanwise.com/news/how-to-lower-the-cost-of-your-van-insurance/
