Commercial Van Insurance: Quotes, Vehicle Types, Coverage, Cost

Who Needs Commercial Van Insurance?

Suppose you run a company that relies on one commercial van or a whole fleet of cargo vans to conduct business. In that case, you need to have a commercial van policy.

Auto insurance policies, in some capacity, is required for every vehicle on the road. Nearly every state has some law on the books regarding driving while insured.

Commercial van insurance is essential as it offers more coverage for you, your employees, and your company. Personal auto insurance will not provide you with this same protection.

If you are a business owner or independent contractor, you should look into commercial insurance policies if you run one of the businesses listed below.

• Couriers

• Florists

• Caterers

• Electricians

• Plumber

• Contractors

The careers listed above are just some industries that rely heavily on cargo vans and delivery vans to either transport goods or provide services.

The list above is a partial list of all the industries that need commercial van insurance. If you fall outside one of those careers yet use a van often for business purposes, you should be shopping for a van insurance policy.

Commercial Vans We Insure

Van insurance will cover a variety of commercial vans, pretty much any type. Some standard commercial vans include:

Cargo vans

These vans are the goto for most delivery businesses. They are basically big boxes on wheels with no windows.

Sprinter Vans

Big, boxy vans built by Mercedes Benz. Sprinters are the go to for contractors, delivery services & mobile businesses that need a lot of space.

Catering Vans

These are basically vans that are mini kitchens on wheels. They are primarily used for serving meals at events or sites where a hot meal is needed.

Mini vans

They're the compact cousins of the big vans. Mini vans are used for moving people as much as stuff. They're small enough to fit in most driveways.

Step vans

Basically big walk-in vans with just a low step-up to get in and out. Frequently used on delivery routes for parcel delivery.

Refrigerated vans

These vans are used to keep items cool during delivery. They are perfect for businesses that deal with food, flowers or anything else that needs to stay cold.

Box vans

Simple vans built for moving big items like furniture, appliances, or whatever else you can't fit in a normal sized car.

Courier vans

Small vans used in the city and suburbs for delivering packages and documents.

Passenger vans

Large vans that can carry around 8 people. Commonly used by companies for employee transportation or for church group outings.

Wheelchair Vans

Vans that have been modified with ramps or lifts to transport passengers in motorized scooters or wheelchairs.

Shuttles

A Small bus that runs on short fixed routes. Commonly used at airports, hotels or campuses to move people around.

What Does Business Van Insurance Cover?

Commercial van insurance is designed to protect you, your employees, and your business in the event of an accident during work hours.

This type of commercial insurance usually covers general liability and property damage, but there are ways to add coverage. Listed below are the types of coverage you can add to your policy:

Bodily Injury Liability Insurance

Bodily injury liability insurance covers injuries you cause to another driver in a collision for which you are at fault.

Property Damage Liability Insurance

Property Damage liability insurance is the other half of liability coverage. It pays for damage to the other party’s vehicle following an accident you have found to be at fault for.

Comprehensive Coverage

Comprehensive insurance coverage will pay for damage to your commercial van it sustains following a non-collision-related incident. Some examples of this may include damage from extreme weather, theft, and vandalism.

Collision Coverage

Collision insurance coverage pays for damage to your van following an accident with another vehicle, regardless of who was at fault. With Comprehensive coverage, these two make up your physical damage coverage.

Medical Payments Coverage (MedPay)

Medical payments coverage covers any medical expenses you and your employees accumulate following an accident. Similar to Personal Injury Protection (PIP), this coverage pays damages no matter who was at fault.

Uninsured/Underinsured Motorist Coverage

Covers when you get into a collision with a driver lacking liability insurance. This coverage can help pay for property damage and medical expenses.

How Much Does a Commercial Van Insurance Policy Cost?

For a rough average, van insurance costs around $1,400 yearly. That’s about $117 per month for coverage. But like any other type of insurance, commercial insurance premiums are personalized.

Several factors go into deciding your annual rates. Things like what industry you are in and where your business location is will be taken into consideration by your insurer.

Below is a complete look at what factors determine your commercial insurance premiums.

• Location - Where you operate your business will impact your rates. Being located in a place with dense populations and higher crime rates will increase your premiums.

• Type of van - The make, model, and year of the vans you try to insure will affect your rates. Some cargo vans are more to insure than others.

• Industry - What industry you are in will affect your rates. Different industries come with various risks and regulations. For example, if you are a plumber who uses their vehicle often, especially for hauling equipment, you would pay more than a tech start-up who occasionally makes deliveries.

• Usage - This goes hand-in-hand with the type of industry you are in. How much you use your van will impact your insurance premiums. The mileage you travel, the more you will likely be paying. Some companies even have telematics installed on their vans to keep track of their mileage.

• Driving records - Both you and your employees driving records will be taken into consideration when establishing your insurance premiums. Your premiums will increase if your driving record has a few accidents or speeding tickets.

• Coverage limits - How much coverage you want will raise or lower your rates. More coverage means higher premiums and vice versa. But try not to get too hung up on this. You do not want to skimp on coverage to save a few dollars a year.

Above are just some factors your insurer considers when deciding your premiums. Some other things they will look at include your insurance claims history and miles on your van.

Commercial Van Insurance Savings Tips

While van insurance is essential, you do not need to break the bank for coverage. There are several steps you can take to go about reducing your insurance premiums. Some examples include:

Van Driver Safety training

Providing driving safety training for your new hires can help lower your rates. It shows you are taking steps to ensure your employees are safe on the road, which will most likely lead to fewer claims.

Insurers try to estimate how much of a risk you will be to them if they choose to insure you. By doing safety training, you lower your insurability risk because the drivers have experience.

Shop around for Commercial Van Insurance quotes

One of the most important things you can do regarding commercial insurance is to shop around. Get multiple policy quotes from a wide range of insurance groups.

This will also help you compare rates and van coverage to see who exactly has the plan that fits your vehicle fleet and business best.

Insurance Policy Bundling

Bundling several insurance policies can get you a break on rates. Bundling means you have multiple types of insurance under one company.

For example, you could purchase commercial insurance for your vehicles and a business owner’s policy from one company. Most of the time, the provider will give you some discount on your premiums.

Hire safe van drivers

Driving records will be looked into when you buy commercial vehicle insurance.

For this reason, it may be wise for employers to hire safe drivers, primarily if the business relies heavily on transportation.

The fewer claims an employee has, the less you will pay for coverage. Some companies even have a no-claims bonus or no-claims discount for companies who have never had to file a claim.

Commercial Van Insurance Discounts

Insurance companies may offer a wide variety of discounts. When you purchase your policy, ask your insurance agent if you qualify for any.

Some typical commercial insurance discounts include safe driving and paid-in-full discounts. Check with your agent to see if these discounts apply to your commercial insurance policy.

Get a Van Insurance Quote Today

Ready to save money with a affordable van insurance rates? Contact us today to get a free commercial van insurance quote.

Make sure you let us know your zip code, details of your business, and information on your van. By providing us with all this, we can better understand the van coverage you need.