What to Expect from Commercial Van Insurance

In Singapore, all vehicles are required to have a minimum of third-party insurance before they can be driven on the roads. However, this insurance policy only covers injuries to passengers and property damage. It does not offer much protection for the van, which is a core feature in some businesses. Businesses mainly insure their vans to ensure they get compensation in the event the vehicle is stolen or involved in an accident. So, third party fire and theft and comprehensive insurance offer businesses a better deal. The downside of the third-party fire and theft policy is there are limitations to what is covered. The insurer can only be involved in cases of theft and fire. Comprehensive insurance covers a range of issues, from minor to major van damage. 

In the following article, Monitor emphasizes the benefits of opting for comprehensive van insurance.

What You Gain from Comprehensive Commercial Van Insurance  

“Van ownership in Singapore. Opt for our comprehensive plan and enjoy full protection for your commercial fleet and drivers, including liability cover for injury and property damage caused by your vehicles.

Commercial van insurance in Singapore. View all new cars such as Toyota Honda Nissan Volkswagen Mitsubishi and BMW. Best viewed on google chrome version 37 and later and safari 8 and later. Lian Hong Pte ltd features over thirty years of experience as a financial provider of quality solutions for motorists in Singapore.” Read more here

Business owners who choose comprehensive commercial van insurance over the other available insurance options have a greater peace of mind when the vehicle is on the road because they know the van is protected against any eventuality. Comprehensive insurance covers windscreen damage, towing services, third party legal liability, legal liability for negligence resulting in passenger injuries, vehicle damage resulting from natural disasters, and vehicle cover against road accidents. Some companies even choose to take care of the costs of a replacement vehicle when the van is at an authorized workshop for repairs or as you await compensation in case the van is written off after an accident. 

Shubhreet Kaur, in the following article, discusses various aspects of commercial van insurance and how the type of insurance influences your ability to get financing from a bank.   

Importance of Commercial Van Insurance in Business Loan Applications

Car insurance: it’s mandatory. I don’t know why they print brochures with people holding up car keys, spouting phrases like “love your ride” or “smooth drive”. As if they need to convince me or something. That brochure could feature a grinning banker lighting his cigar with a $50 bill, and it would make zero difference. I’d still have to buy it. So, let’s explore the available options: what’s the difference between these insurance plans?” Read more here

While some business owners know that they need to apply for a bank loan, others may not need it. Small businesses may not have much to offer as collateral against bank loans. This is why some use company vehicles as collateral. Banks consider commercial vans sufficient collateral, depending on the amount the business is requesting. However, most lenders are keen only to accept vans that have comprehensive insurance coverage. This way, they are guaranteed payments even when the vehicle is written off in an accident. 

This next article by Lance Teo looks at some of the best insurance companies in Singapore. 

Qualities of a Great Insurance Company for Comprehensive Van Coverage

“If you drive your own car, you know that anything can happen while you’re on the road. And since no one is immune from road accidents, it’s better to be prepared by having the best car insurance in Singapore.

Everyone knows how expensive car repairs and services can get, depending on the damage of your car. If you have great car insurance, you don’t have to empty your wallet trying to pay to repair your car.” Read more here

Although most insurance companies offer comprehensive commercial van insurance, some are better than others. Like any other service providers, you need to identify the company that is likely to meet your needs. Some companies are more responsive and offer compensation much faster. Others offer flexible and affordable rates, which makes it easier for small businesses which have a tight budget. Some insurers have add-ons to offer extra protection. So, when searching for the right company, find out what they offer in their comprehensive insurance package. 

Comprehensive insurance coverage has several benefits to a business. There is the guarantee of continuation even when a van is written off in an accident. Likewise, the business can use the van for financing assistance from lenders who accept commercial vans as collateral. Insurance companies that offer a comprehensive package and have the financial muscle to cushion businesses before compensating for the loss of the van are an ideal choice for small businesses. 

The Difference between Personal and Commercial Van Insurance

Are you a florist, gardener, or landscaper? Do you run a laundry delivery service? Since the van makes movement easier, especially because such businesses require space for the tools and items to be delivered, business owners need to insure them. Unfortunately, for small business owners, the line between a van for business and personal use is usually blurred. If anything, some entrepreneurs opt to use the business vehicle as a personal vehicle as well in a bid to cut costs. However, personal vehicle insurance policies do not cover business use, so a policy that covers multipurpose vehicles is essential. 

Kevin Pratt, in the following article, discusses various types of commercial van insurance, including the benefits of comprehensive coverage. 

Choosing between Comprehensive and Third-Party Van Insurance 

“You might be a plumber or a plasterer, a florist or a fishmonger, but your van is no doubt vital to your business. You therefore need cover in case something goes wrong. If your van was stolen, for example, your business could grind to a halt. Or what if the vehicle was involved in an accident and off the road?

Commercial van insurance is essential to ensure the smooth running of your business. But in these difficult economic times, no one wants to pay over the odds for van insurance – and no one wants to buy inappropriate cover.” Read more here

In Singapore, when seeking coverage for your business van, you will have several policies from which to choose. The third-party policy is usually the cheapest and is the bare minimum insurance required for any vehicle. This policy only covers the injury of another person or their property. Third-party fire and theft policy mean the insurer will compensate you if the van is damaged by fire or if it is stolen. Comprehensive van insurance is the maximum cover, and it covers all kinds of damages. The comprehensive van policy is the best option for all businesses that use the van to run the business. 

In the following article, Thomas White explores van insurance, especially for those who need coverage for business and personal use. 

Things to Consider When Commercial Van Insurance

“Van insurance covers you against all kinds of risks relating to owning and driving a van, in the same way that car insurance protects car drivers and users. Many people mistakenly think that their car insurance policy will cover their van, which is rarely the case. Van insurance can cover you if you end up in an accident, and can also help you repair or replace your vehicle quickly and efficiently to keep your business on the road in the meantime.”  Read more here

When requesting coverage for your business van, you need to discuss every aspect of its usage with the potential insurer. For instance, taking a policy that only covers the van when being used for business means you may not get compensation should you be involved in an accident when running personal errands. If you use the van to carry business tools and equipment, you need to ensure the policy also covers the contents in the van. If you deliver goods and rewards to customers, the policy also needs to cater for such goods. You may also need haulage cover if your drivers cover a long distance to deliver goods or services. 

The following article by gobear discusses business insurance and the importance of being specific when taking out a policy to protect business property. 

Why You Should Consider Commercial Van Insurance before Buying a Van

“All geared up and ready to start your first trip as a Grab driver or to earn some spare cash? Or are you teaming up with some buddies to do some Lalamove gigs? The sheer excitement of being your own boss and deciding how you want to earn your keep is understandable.

But before all that sinks in, have a think about protecting yourself from unexpected situations. On the legal front, you need to have suitable car insurance, which can be either third-party or comprehensive, regardless if you’re driving for yourself, or as a Grab driver, or just picking up some moving jobs on the side.” Read more here

When coming up with a business plan, even as you consider everything you will need, including a van, you need to consider the challenges you will face when seeking insurance if the van you buy has unseen obstacles. For example, when buying a used van, you may need to consider the age of the van. Many insurers have age limits beyond which they cannot offer comprehensive van insurance because the vehicle carries a greater risk. You should also consider the model and even the age of the drivers you hire. 

If you are looking for van insurance in Singapore, visit  https://allegiance.com.sg/commercial-insurance/commercial-vehicle-insurance/ for the best policies!

It may seem an overstretch for an insurance company to dictate certain aspects of your business, such as the age of the van and drivers, but these companies are also taking a risk insuring your van. They have a slot to lose should they cover a vehicle that will be breaking down constantly, or one that is more likely to be involved in an accident because of an inexperienced driver or the van may be too old. Insurance companies also prefer to draw the line between personal and commercial use of business vans. This is why there are policies dedicated to commercial vans that are sometimes used for personal use. 

How Classic Van Insurance Differs from Other Commercial Vans

Businesses with old vans often struggle to get coverage from insurance companies. Most insurers consider older vehicles riskier to cover, particularly when it comes to comprehensive insurance. Many companies offer the bare minimum, third party insurance. This policy limitation gave rise to the insurance of classic vans. Insurance companies that offer classic van coverages have different definitions of classic vans. Some give this coverage to vans that are 20years and above, while others only cover vans that are 25 years or older. 

In the following article by moneyexpert, the author discusses classic van insurance in detail, including factors which influence the cost of insuring classic commercial vans.  

Benefits of Classic Van Insurance Policies

“Reliant Regents, decommissioned milk floats and ice cream vans, psychedelic vehicles best suited to carrying around a rock band or crime-solving teenagers and their dog. Few of us are driving classic vans, but those who do make themselves known – and they’ll need an insurance policy suited to their unusual ride.

But not all “classic vans” are groovy ghost-busting vehicles or eye-catchers. Some are simply older vehicles still on the road and being used for business.” Read more here

Many startups that require a van for movement of goods and equipment cannot afford to get a new van. Most turn to old vans because they are cheaper to buy. Unfortunately, the price difference may be paid in insurance because companies that accept to give comprehensive cover for such vans charge high premiums. Such businesses should instead seek out insurers offering classic commercial vans insurance policies. The rates are usually cheaper than regular policies on older vans. Some companies also offer special coverage to cater for repairs, which are usually high for classic vehicles whose parts are usually hard to find. Other unique provisions in classic van policies include provisions for restoration, races, and exhibitions. 

Mehdi Punjwani, in the next article, discusses the conditions of the various commercial van insurance policies. He also discusses extras that a business can pay for when the van is comprehensively insured. 

Extra Policies to Support Third-Party Van Insurance Covers

“So how do you pick the right business van insurance policy for your needs, and what should you know before you start looking?What is business van insurance?

Business van insurance is a type of insurance policy you can take out for your van if you use it for commercial or business reasons. It generally covers you for everything a standard policy would, but business van insurance can also offer cover where a standard policy wouldn’t apply – for example, if you’re delivering goods as a courier.” Read more here

Although comprehensive van insurance is the ideal option for all vans, both for personal and commercial use, not every van owner can afford the premiums attached to comprehensive van insurance. This is the case with many small startups. Many small business owners may feel compelled to seek the bare minimum, a third-party policy as required by law with the hope of getting comprehensive coverage when business picks up. However, given the limitations of third-party policies, some insurers provide extras which businesses can buy in addition to the third party. Some of the extra policies may include tools in transit, breakdown cover, legal cover, and courtesy van. 

In the next article by trustedchoice, the author discusses commercial vehicle insurance, and what it means when one uses a commercial van for personal errands. 

Significance of Using a Commercial Van for Personal Use

Commercial auto insurance provides protection against both property damage and liability for any vehicle designated for business use. 

Whether you drive a vehicle that is for dedicated business use or drive a personal vehicle for business, it is important to have commercial auto insurance, because your vehicle won’t covered under a personal auto policy. Read more here

It isn’t unusual for business owners to sometimes borrow the company van for personal use, especially when they need a vehicle with sufficient space to transport personal goods. What happens when this van is involved in an accident while on unofficial duties? Will the insurer cover for the damage, or is this breach of contract? Many insurance companies do not take issue about the circumstances surrounding the incident that has led to the claim, as long as authorized personnel were driving the vehicle. However, it is best to discuss this possibility with your insurer so that you can know what to expect when faced with a conflict of this nature when making your claim.  Business owners need to understand what they are signing every time they seek insurance for their vehicles. The age of the van often determines the kind of coverage you will get and the premiums that you will pay. You also need to seek guidance when there are no clear lines between the use of business vehicles for commercial and personal use.