Lockdown Accelerates Van Insurance Demand

COVID-19 Lockdown Accelerates Van Insurance Demand

During the lockdown of the UK, Vans have become crucial and this has led to an increase in demand for van insurance.

During the Covid-19 lockdown, van insurance take-up was on the increase as deliveries were critical for both homes and companies with social distancing being introduced as a large step in the UK to reduce the spread of the virus. If you are providing a service and using  van you will need courier van insurance also referred to as van hire and reward insurance.

Honcho Chief Executive Gavin Sewell said: "The 2020 events have placed an even greater emphasis on how important vans are for all of our lives, and now, more than ever, van owners need a better deal. Whether they supply our shopping or transport tradesmen and their instruments to keep our homes and businesses going, vans are vital for all of us."

Sewell added: “However, when it comes to insurance, van drivers all have different needs. Some need cover for the tools in their van, for example, and for some, if they are without their van, their business stops and so they choose the courtesy van cover.”

A large increase in quotes was also announced last month by Van Insurer. It reported 15 percent more quotations in June. In the meantime, as the UK eased the lockdown, it noticed a 52 percent spike in applications between April and June.

In June 2019, the rise in quotes for van insurance was 41 percent compared to June 2020.

Insurance of a rental van

Your business may need a van occasionally, to move bulky equipment, or you may rent a van for long periods of time; in this case, you must ensure that the rental contract properly insures the vehicle. 

Choosing the right insurance for your van

To properly insure your van, you must take out: 

Third-party liability insurance, which is the only truly compulsory one.

Insurance on goods in transport. This insurance makes it possible to cover the risks of fire, theft, and breakage which would affect the goods from their removal to their delivery. The van insurance contract must mention the maximum insured value of the goods.

Fire, loss, theft insurance: if your van is stolen or set on fire, you lose a work tool that you will have to replace. This is why it is important to take out this type of guarantee. The amount of compensation varies depending on your contract.

If your business has multiple vans, you may be offered a multi van fleet insurance contract. Make sure that the fleet contract is more interesting than insurance per unit van. If a van has an accident, with a fleet contract, the other vans may be penalized because insurers can recalculate your premium each year, according to the claims recorded for all the vehicles insured in the fleet contract.

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