Will My Van Insurance Payout

A lot of drivers take out van insurance but only briefly scan the terms and conditions. That’s ok if you never need to make a claim but if you do and discover that you’re not properly covered or you have invalidated your insurance, you could face a hefty bill, a penalty and even prosecution. The answer to ‘will my van insurance pay out?’ can be found in the documents your insurer sends you – always read these carefully.

This guide is designed to help explain why in some cases, your insurer might not pay-out.

If your van is written-off

If your vehicle has been badly damaged it will be sent to an approved garage for assessment. If the garage deems the vehicle as irreparable, a claims assessor will be called in for final assessment. If repair costs exceed the value of the van, it will probably be written-off as it will be viewed as uneconomical to repair and your insurer will pay out the value of the vehicle before it was damaged (after deduction of the policy excess, assuming your policy covers the incident).

If you’re hit by an uninsured driver

In this case, you’ll be able to claim on your own insurance if you have comprehensive cover. This usually means losing your no claims discount (unless it’s protected) and paying the excess but unless you have breached your insurance agreement, there is no reason for your insurer not to pay out.

If your van is stolen

First, contact the police to obtain a Crime Reference Number which you will need to make a claim with your insurer. You’ll probably be assigned a claims assessor to discuss the claim. A theft excess may apply to your policy and this will be deducted from any amount you receive.

Why your insurer might not pay out

There are a number of reasons why your insurer may refuse to pay out: 

  • The policy was not in force at the time of the incident being claimed for
  • You were untruthful on your insurance application or didn’t disclose something e.g. penalty points
  • You withheld information or misled your insurers – for example, parking on the street and saying you use a garage
  • You have missed one or more premium payments
  • You don’t have a valid driving licence or you have breached the terms of your licence, such as driving unsupervised on a provisional licence or without required glasses
  • You failed to update your insurer on changes to your circumstances
  • You haven't kept to a condition of your policy, such as leaving your van unlocked
  • You are trying to claim for more than you should.

Alternatively, your insurer may only pay some of your claim. This may be because:

  • You’re underinsured (the cost of your claim is more than what you’re covered for)
  • You have to pay an excess – this comes out of the value of the claim
  • Your van was overloaded at the time of the accident
  • You were driving abroad – many policies reduce the cover level or refuse to cover you when you take the vehicle overseas.

Contact us today 

Insure your van online with the RAC today or alternatively, get a quote for your van insurance online.

If you need to insure your van for a short period of time, the RAC’s Temporary Van Insurance option is right for you. Get cover for your van from one hour to 30 days.

Our comprehensive Car Insurance Plus is packed with features and benefits and has a Defaqto 5 Star Rating.


Pay-by-day car insurance from 1 hour-30 days


A new kind of car insurance for lower mileage drivers.


10% multi car discount for up to three additional cars so you can cover your whole family.


RAC Learner Driver Insurance offers flexible, short term cover whilst you gain experience behind the wheel. Buy comprehensive cover online 24/7.


Black Box Insurance saves new and young drivers money by rewarding safe driving.


Protect yourself from unexpected costs when hiring a car. Daily cover from the equivalent of £3.49††


Specialist insurance for your classic car with free agreed value cover at no extra cost.


Find insurance cover for your electric or hybrid car at the right price with RAC.


RAC Temporary Business Car Insurance covers you for business related travel from 1 hour to 30 days


Motorbike insurance UK from the RAC, bringing competitive motorcycle insurance quotes online with the optional extra of motorbike breakdown cover for your quote.