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Saving Money with Short Term Van Insurance

Van insurance can be incredibly expensive, which is why many people are turning to short term cover in order to save money. Unsure if short term insurance is right for you? These common questions and answers will help you decide.

How can short term van insurance save money?

Van insurance can be incredibly expensive, and if you are not going to be driving the vehicle regularly over a long period of time, you will end up wasting money on a policy which you are simply not using.

One option would be to cancel the policy part way through, however this could result in a penalty fee from the insurance broker. The fee will vary from broker to broker, but it could mean you lose a significant amount of money; particularly when cancelling within the last few months of a year-long policy, you could risk losing all of your remaining premium.

Read the terms and conditions of a van insurance policy before you buy and make a note of the cancellation fees. If it is likely you’ll end up cancelling part way through the year research temporary insurance instead and compare the overall costs of both in order to find the cheaper option.

Many online comparison websites have options to search for van insurance policies and can help you to find the best deal. However, make sure to read the terms on each policy; you may find that cheaper premiums charge higher cancellation fees which could result in them being more expensive overall.

How can businesses benefit from short term van insurance?

Your employees may use your commercial vehicles on a regular basis, but only on certain days of the week or for a few weeks of the year. Rather than insuring drivers every day, all year round, you can look for a tailor-made policy where you only pay for the amount of time each employee spends driving.

Since it can be somewhat complex to create a policy of this kind, it is often beneficial to arrange a meeting with an insurance broker in order to go over the terms in detail and negotiate a good price.

What are the negative aspects of short term cover?

Short term van insurance is more expensive in the long term than a year-long policy. This is because insurers may see you as more of a risk since you do not drive the vehicle on a regular basis. Therefore it is worth comparing short term insurance rates with full year policies, taking into account potential cancellation fees you may accrue.

Another negative aspect is that you will not be able to accumulate no claims discounts with short term insurance. Over 5 years, no claims discounts can result in up to 75% savings on your insurance, so bear this in mind if you tend to drive vans regularly. In the long run it may be more cost-effective to take out normal long-term insurance policies and paying a little more to begin with in order to drive down your premiums with no claims discounts over several years.

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