6 Tips for Getting Cheaper Van Insurance

Choosing the right van insurance can be difficult, especially when you’re looking for a policy that doesn't cost a fortune.

As a van driver, you might be interested in ways you can reduce your business van insurance costs. The good news is, there are a few things you can do to get a cheaper van insurance policy.

Here are a few tips to get you started

1. Choose the right van

When it comes to business van insurance, the size and power of your vehicle can make a big difference to the amount you pay. Larger vans, particularly those with more powerful engines, are usually more expensive to insure. This is mostly due to the increased risk associated with these vehicles – they can cause more damage in an accident, and their parts are often more expensive to replace.

If you're in the process of buying a new van, or thinking about upgrading your current one, it's important to weigh the benefits of a larger, more powerful van against the potential increase in insurance costs. For many business van drivers, a smaller van can still do the job, without the added expense of higher insurance prices.

Before making a decision, consider the type of work you do, the goods you transport, and the distances you typically travel. If a smaller van can handle your work, it could be a wise choice for keeping your business van insurance costs down.

2. Boost your van's security

Increasing your van's security – installing advanced features like an alarm system, immobiliser, or a tracking device – can lead to substantial savings on your insurance.

These extra security measures not only deter thieves, but also signal to insurance providers that your van is a lower risk, which could result in a lower insurance cost. Remember, the cost of these upgrades can often be offset by the savings on your insurance over time.

3. Check your insurance group

In the UK, vans are categorised into different insurance groups, which insurers use to help determine the prices they charge. These groups are numbered from 1 to 50, with Group 1 being the cheapest to insure and Group 50 being the most expensive.

The insurance group of a van is determined by lots of different factors, including the cost of parts, the overall cost to repair the van, type of van, its performance, engine size, weight, and standard security features. The higher the insurance group of your van, the more you're likely to pay to insure it.

If you're looking for a new van, it helps to research and understand these insurance groups before you make a purchase. Choosing a van in a lower insurance group can result in significant savings on your insurance. This is particularly true if you're a younger driver or have points on your licence, as these factors can already contribute to higher insurance costs.

Remember, while it's important to find a van that suits your business needs, it's just as important to consider the ongoing costs of keeping and running your vehicle. A bit of research can go a long way towards paying less over the long run.

4. Increase your voluntary excess

The voluntary excess on your insurance is the amount you agree to pay towards any claim you make. If you’re able to increase your excess amount, you can help to reduce your insurance premium (your overall insurance cost).

Before choosing a higher excess, it's important to consider the total cost to you in the event of a claim. If you're involved in an accident, you’ll have to pay that larger sum before your claim can be processed. So it's a good idea to check that you can comfortably afford it, either now or in the future.

5. Use your no claims bonus

A no claims bonus, also known as a no claims discount (or NCD), is a clever way to reduce your insurance premiums. The bonus works by giving you a discount for every year you drive without making a claim. It’s essentially a reward for safe and careful driving.

Some insurers even allow you to transfer a no claims bonus from another vehicle, giving you a head start on potential savings. So before you decide on an insurer, it's worth checking their policy on no claims bonuses and discounts for safe driving.

6. Pay annually

Choosing to pay your insurance on an annual basis, rather than monthly, can help to lower the costs. That’s because many insurers offer discounts to customers who pay their premiums in one lump sum at the start of the policy term.

When you choose to pay monthly, it’s a bit like getting a loan from your insurance company for the annual cost of your policy, which you then pay back over 12 months. This loan often comes with interest and service charges, which can add up over the year. By paying your insurance upfront, you avoid these charges, helping to reduce the overall cost of your insurance.

So while it does involve a larger upfront cost, paying annually can save you a good amount of money over the long term.

7. Consider black box or telematics van insurance

Black box or telematics insurance can be a good option if you’re a careful driver and want your driving behaviour to count towards your insurance cost. These policies use a small device or app to monitor things like speed, braking, acceleration, mileage, and when you drive.

For many van drivers – especially those with limited no claims history, points on their licence, or higher-risk profiles – telematics can help insurers see that you’re driving safely, rather than relying only on past claims data. In return, this can sometimes lead to lower premiums at renewal, as well as ongoing feedback to help you improve your driving.

Telematics doesn’t replace your no claims bonus – you’ll still build that in the usual way by driving claim-free. But it can work alongside it, giving insurers more confidence that you’re a low-risk driver and helping to keep your business van insurance costs under control.

As with any policy, it’s important to check what data is collected, how it’s used, and whether there are any restrictions that might not suit the way you work or the hours you drive.