What is business van insurance?
Sometimes known as commercial van insurance. It gives you financial protection from theft, damage to your van, and claims made against you and your business from the result of any accidents.
Business van insurance offers similar coverage to a private van policy, but with added protection tailored to how you use your van for work. For example, it can cover liability claims for third parties such as whilst loading and unloading tools. This type of insurance is suitable for both sole traders and limited companies.
Do I need business van insurance?
If you only use your van for personal reasons for hobbies such as fishing, biking, surfing, shopping, or commuting to a single place of work, then Social, Domestic, Pleasure and Commuting (SDP&C) cover may be sufficient. This type of cover is typically included in a standard van insurance policy. However, if you use your van for work purposes beyond commuting you’ll likely need business van insurance to ensure you're properly covered.
It’s a legal requirement to have motor insurance if you drive a van on public roads. However, having the wrong type of insurance, for example, a private policy when you're using your van for business can leave you exposed. While you may technically meet the legal requirement, your insurer could reject claims if your van is used for purposes not covered by your policy. This could lead to serious consequences, such as financial loss from an unpaid liability claim, being left without a replacement van, or even facing penalties like fines, points on your licence, or vehicle seizure. That’s why it’s essential to make sure your insurance matches how you actually use your van.
If you run your own business, it’s your responsibility to get cover. If you work for a company and have a company van, it’s more than likely your employer already has the van covered with company van insurance. But always check with them and your insurer if you’re unsure.
What does business van insurance cover?
What’s included or not included can vary between policies. Always check your cover level, policy documents and exclusions when you get a quote. But in general you can expect the following:
What’s covered?
The exact list of what’s covered might vary depending on your level of cover and what you use your van for. In general, business insurance for your van could cover:
Medical expenses for yourself, your passengers and other road users as a result of injuries from an accident
Accidental damage to your van, other people’s vehicles and property as a result of an accident
Damage to your van cause by attempted theft, fire and vandalism
Loss as a result of theft of your van
Personal accident payout for life changing injuries or death as a result of an accident
What’s not covered?
Normally, your claim could be rejected and you might not be covered for the following:
Letting different people drive your van who aren’t listed as named drivers
Using your van for a different purpose than stated on your policy
Incidents involving alcohol or drugs
Preventable claims for theft, like if you left keys in the ignition or a back or side door open or unlocked
Inside and out wear and tear of the van
Repairs for mechanical or engine problems
Van breakdowns (without choosing added breakdown cover)
Carrying passengers for hire and reward – you’ll need taxi insurance for this
Why choose RAC Business Van Insurance?
Top rated cover
RAC Van Insurance is 5 Star Defaqto rated
Tailored and bespoke cover
Choose from a range of optional extras, designed for business use
UK claims helpline
Our dedicated claims team are here to help
24/7 policy changes
Manage and change your policy online 24/7
Cover levels of insurance
We only offer fully comprehensive insurance for commercial vans. This type of cover gives the most protection. It includes more than third party or third party, fire and theft.
Comprehensive business van insurance
With this level of cover, you’ll be protected for damage to the van, property and yourself, even if you are at fault (limits may apply). Comprehensive cover includes:
✓ Third party including fire and theft
✓ Fully protected from damage and accident
✓ Cover for replacement locks if your keys are lost or stole
✓ Protection and excess refunded if hit by an uninsured driver
✓ 7 day replacement van included for carriage of own goods and haulage
✓ Damage to another person’s car or property
✓ Covers costs relating to other people’s injuries from your vehicle
What do I need to get a commercial van insurance quote?
Getting a quote takes less than 10 minutes, and you’ll need to provide the following information:
Personal details
This includes your full name, date of birth, and home address, including your postcode. We’ll also ask about your relationship status, such as whether you’re single or married. If you want to add other drivers to the policy, we will need their details too.
Van details
More information on the van you’re insuring – including the make and model, whether it’s fitted with an alarm, and any modifications that may have been made.
How you use your van
We’ll need to know what kind of business and work you do in your van. Such as what you transport or keep in it. Estimated annual mileage, and where the vehicle will be parked overnight.
Flexible policy options
Pay monthly
Spread the annual cost with a direct debit to help manage your monthly business outgoings.
Pay annually
Pay in one lump sum to save on monthly interest, for 12 months of cover.
Temporary
Need a van for a small job, or a short period of time? Pay as you go with our temporary van insurance. Get cover for an hour, day, week or month.
Boost your cover with optional extras
RAC Breakdown Cover from £49.99 a year
Choose from a range of van breakdown cover levels to keep you and your business moving in the event of a breakdown.
Tools and van contents cover from £42.49 a year
Choose between £1K, £2.5k, £5k and £7.5K of cover for your tools or other equipment should they be damaged in transit or whilst loading or unloading.
Motor Legal Protection for £19.99 a year
Cover up to £100,000 of legal expenses to help claim back any uninsured losses if you’re involved in an accident that wasn’t your fault.
Keycare for £8.99 a year
Cover for replacing lost home or vehicle keys up to the annual limit of £1,000.
Guaranteed Replacement Vehicle cover for £34.99 a year
Provides a vehicle for up to 35 days of cover, if yours couldn't be driven following an accident, fire, vandalism or theft.
What type of business van insurance do I need?
Carriage of Own Goods
This cover is for transporting goods or tools related to your business, such as if you’re a self-employed electrician or plumber.
If you use your van to carry tools or stock, you can add optional contents cover. This protects your equipment while loading, unloading, and in transit. It can also help cover the costs if your tools are stolen.
Courier – Carriage of Goods for Hire and Reward
This cover protects you when you’re responsible for goods belonging to others, such as when working as a courier. It’s ideal for multi-drop parcel deliveries.
Haulage
This type of cover is designed for longer-distance deliveries. Unlike courier work, which is usually local with many stops, haulage focuses on regional or national deliveries to single destinations. It is often linked to truck insurance, but we can also provide cover if you use your van for haulage.
Goods in transit
Goods in transit cover adds extra protection to carriage of goods and haulage policies. It protects your cargo against theft, loss, or damage during transport, as well as while loading or unloading.
Some level of this cover is often included as standard with most policies, but you can choose to pay extra for higher cover limits. Always check what’s included when you get your quote.
Still unsure? Find answers to your questions
Yes, you and any named drivers on your policy are covered when driving within the European Union. For up to 60 days during your insurance period, your full policy cover will apply while you are using the vehicle in the countries listed in your policy documents.
We cannot offer insurance to vehicles that will be used to carry hazardous goods or liquids.
These substances and materials include explosives, organic peroxides, toxic substances, infectious substances or radioactive materials.
Business breakdown cover doesn’t come as standard for vans, it needs to be added on as an optional extra. You can select this when you get your quote.
We offer four different levels of breakdown cover that can be added to your van insurance policy (or three levels if you choose haulage use).
We can provide quotes for vehicles up to 3.5 tonnes. Overloading may lead to penalties, including denied claims if the van is not used as per the policy. Driving a van over its maximum weight (Gross Vehicle Weight or GVW) is also illegal.
No, van insurance is exempt from VAT.
Yes, it usually is. This is because commercial use carries higher risks, such as transporting goods, potential liability claims from customers or third parties, and spending more time on the road, like when working as a courier. As a result, insurers charge more to cover these risks and the higher potential claim amounts.
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