How van insurance quotes are calculated

Insurance companies will ask a series of questions to everyone who is interested in taking out a van insurance policy. By doing this, the insurance company can identify what risks they are taking on.

Generally, insurance companies evaluate the same factors when calculating van insurance prices, but as no two risks are identical prices can vary from one company to another.

Main factors they look at:

Van insurance group

All vehicles have a group rating given to them by The Association of British Insurers (ABI) ^† . The ratings are based on the risk of the vehicle, they are factors such as:

The value of the vehicle.
How much damage could be done to the vehicle and how much the parts would cost to replace/repair.
Performance, acceleration and top speed.
Whether the vehicle has a security system in place.

Claims history

Insurance companies will need to know about your claims history usually for the last 3 - 5 years. The more claims you have the more expensive your insurance policy is likely to be.

Remember! The insurance company will need to know about all your claims regardless of who is to blame.

Drivers

Insurance companies will look at the drivers that you wish to be covered on your policy. Depending on the experience of the additional driver there may be an extra charge to your policy.

Driving convictions

Driving convictions will also be a factor that insurance companies rate on. If you or an additional driver has a conviction on your licence then insurers consider you to be a greater risk on the road than a driver with no convictions. The insurance company usually considers driving convictions in the last 3 to 5 years.

Depending on the seriousness of the conviction will influence the extra amount your insurance company will add to the premium. Serious convictions may cause an insurer to add special terms to a policy or even reduce the amount of cover they offer you. Find out more about convictions.

Medical conditions

Insurers cannot charge extra for medical conditions if you hold a licence without restriction. If you do hold a restricted licence your insurer may need to take this into account when reviewing the risk.

Everything that may have an effect on your ability to drive has to be noted by the Driver and Vehicle Licensing Agency (DVLA)^† . The DVLA website holds further information on driving and medical conditions which should clarify any other queries.

Mileage

The more time you spend on the road the more likely you are to be involved in an accident. So if you tend to drive a lot your premium may be higher.

Occupation

An insurance company will look at your occupation as an influencing factor on the price you pay. Certain occupations will be a higher risk, such as those that carry goods in their vehicle. Other occupations such as sportsmen and sportswomen, entertainers and chefs may also be seen as a higher risk.

Security

Security systems on your van will also be a deciding factor on the premium you pay for your insurance policy. If your van is fitted with an alarm and/or an immobiliser it is less likely to be stolen, therefore you can expect to pay less for your van insurance policy.

Vehicle use

What you use your van for will have an effect on your insurance premium. The minimum risk would be if you only use it for driving between family and friends and to go shopping. However if you do use your van for both social and business purposes, you will face a higher rate from the insurance company, as you will be considered a greater risk due to the extra mileage you may do or the goods you may carry.

The different categories of vehicle use are:

Social, domestic and pleasure - you are covered for day to day driving, such as going to visit family and friends or shopping. However it does not allow you to drive to work.
Social, domestic, pleasure and commuting - you are covered as above but also for driving to a fixed place of work.
Business use - you can use your vehicle in connection with your job, such as driving to more than one place of work.
Commercial travelling - you can use your vehicle for things like door to door sales.

Remember! Tell your insurance company exactly what you are using your van for; otherwise you may not be covered if you need to make a claim. Your policy documentation will state what vehicle use you are covered for.

Your address

Where you live is another factor that is important to an insurance company when it comes to calculating your price. If you live in a city you can expect much higher levels of traffic than in the countryside which will mean that there is a greater risk of having an accident, therefore this will make you a higher risk as there is a greater chance that your van will be involved in an accident, vandalised or be stolen.

If you leave your van out on the road overnight rather than locked in a garage this may also affect the amount the insurance company charges.

Remember! You must tell your insurance company if you move, even if this is temporarily such as when if you are studying away at university.