Factors affecting the premium of your van insurance

Knowing how your van insurance is calculated can give you insights into the process and help you minimise your insurance premium. Several factors like the driver's age, vehicle's make, and the level of your coverage help determine the cost of your insurance premium.

What are the factors that affect the premium of van insurance?

Insurance providers consider several factors when calculating the risk and determining the cost of your van insurance premium.

The following factors determine the cost of your van insurance:

• Details of the van
• Driver's details
• Level of Cover
• Gender
• Add-ons
• Occupation

How does your van determine your insurance premium?

Cars are categorised based on their relative risk. Insurers generally know which cars are likely to cost them the most in insurance claims. Every make and model of car is assigned to one of 50 insurance groups. In general, the lower the group your car is in, the less insurance you'll have to pay.

Top-of-the-range expensive models that are costly to replace and repair, in case of theft or accident, invite higher premiums. Desirable high-powered cars are also likely to attract thieves and hence pose a higher risk.

If your van has security and safety features, they can help reduce the price of your van insurance.

A well-secured van with safety features like autonomous emergency braking (AEB) is more difficult to break into and hence poses a lower risk.

How does the driver affect the van insurance cost?

The driver significantly impacts van insurance costs. Factors like age, experience, driving history, and claims record can increase or decrease your premiums.

Young and inexperienced drivers are deemed to be risky drivers and generally pay more. Older drivers who've been driving a van for some years pose a lower risk of accidents.

After 25 years of age, you're considered a mature and more responsible driver which might help lower your premiums. Older drivers, over 70, though are also classed as higher risk by insurers.

Having a record of few driving convictions and a no-claims history also helps reduce your insurance premium.

How does the level of your coverage affect your van insurance?

There are three levels of van insurance coverage:

Third party only (TPO) insurance: The minimum level of cover required by law that covers injuries or damages to third parties only.

Third-party fire and theft (TPFT): Covers you for damage and injury to third parties, plus fire damage or theft of your vehicle.

Comprehensive cover: The top level of protection, covering you for theft and fire, plus your car and the third party's vehicle and passengers if you're in an accident.

Even though it provides the most protection, comprehensive cover can be sometimes the cheapest option.

That's because insurers regard drivers who choose comprehensive cover as being more responsible. Typically, it's always been high-risk drivers who've opted for a TPO cover.

How does gender affect your van insurance premium?

It's against the law for insurers to discriminate based on gender. But figures show women pay lower premiums on average.

That's because, in general, the risk profile of many women is lower. They tend to have fewer accidents and have a better no-claims history. They also get fewer penalty points and driving convictions, both of which push up car insurance premiums.

Women also tend to drive less-powerful cars that are less desirable to thieves and also would be cheaper to repair and replace.

How do add-ons affect your van insurance premium?

Policy costs also vary based on the optional add-ons you choose. Add-ons are extra coverage you get on your policy for an extra fee. Some available extras include:

• Legal Protection: This covers legal costs if you seek compensation for accidents, not your fault.
• Breakdown Cover: Assists when your vehicle breaks down, aiding your return to the road.
• Courtesy Car: Provides a temporary car if yours is unusable or written off.
• Windscreen Cover: Funds repairs or replacements for chipped/cracked windshields.
• Replacement Key Cover: Handles expenses for lost, stolen, or damaged keys.

How does your occupation affect your van insurance premium?

Insurance companies gather previous data about various professions to forecast the likelihood of future claims.

If your job is perceived as a higher risk, your premium will be higher. You might lower your premium by selecting an accurate job title from a list when getting a quote. Sometimes, certain titles offer cheaper quotes.

It is important to note, though, that honesty is crucial; providing false occupation information can void your insurance coverage.

Looking for cheap van insurance?

Van insurance is essential to protect your assets but at the same time, it should fit your budget too. It is always a good idea to discover and explore all options before making a decision.

With Paddy Compare, you can get the cheapest van insurance quotes from across the market. Browse through deals from reliable brokers and make a confident decision. Simply follow these steps: