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.