Van insurance groups explained – what factors affect my insurance costs

Understand van insurance

There are many factors to consider when purchasing a new van; ranging from usage costs to payload and load capacity. Of course, once you’ve bought your van you’ll have to get it insured, and the cost of this can vary widely depending on a number of different factors. For that reason, it’s worth doing some research upfront on van insurance groups as this affect how much money you have to spend.

What are the insurance groups?

Before we go through the van insurance groups explained below, it’s best start with what a van insurance group is. Simply put, it’s a means used by insurance companies to determine the cost of premiums for van owners. There are currently 20 groups in total. The ABI (Association of British Insurers) decide how a van will be catergorised using the system.

How is a van categorised for insurance groups?

There are a number of factors considered, including:

•Parts costs – if parts are expensive your van is more likely to be in a higher category

•Repairs – again, if deemed to be expensive, then this will affect your premium

•Performance – the more powerful a vehicle, the higher the premium

•Engine size – bigger engines will be in the higher cost categories

•Weight – heavier vehicles fall into higher premium categories

•Security – if a van has a high level of security features, this will drive down the cost of the insurance

When you’re looking for a new or used commercial vehicle, the van insurance groups list above can help you select the right van for your budget and give you a clearer idea of what your insurance policy may look like. Inevitably, insurance is a key part of your running costs, so your choice will undoubtedly affect your bottom line.

What else is taken into account?

Aside from the van specification itself, your insurance premium will also reflect your circumstances and what the intended use of the van is. Mileage, geographic factors and where the vehicle will be stored can all be taken into account to determine the likelihood of an accident or vehicle theft occurring.

In addition, insurance providers may also look at how your business will use the van. If it’s going to be used for tools or equipment, for example, then ‘carriage for own goods cover’ is suitable. If your business transports goods for customers, then ‘haulage’ will apply. You may also need to think about whether your van will be used for personal mileage at weekends, as this may affect the type of usage you need cover for.

If you would like further information about insurance cover, or wish to have van insurance groups explained in more detail, don’t hesitate to contact your local Vanwise dealer or visit us in Harlow, Maidstone and Dunstable. We supply a range of used vans, all of which are available with our flexible finance options. Get in touch to discover more.