Is Van Insurance Changing?

The insurance industry is defined by change. Whilst the fundamentals can remain unaltered for decades, the nitty-gritty of a policy can change markedly and with surprising regularity too. Nowhere is this better highlighted than in the world of van insurance.

 

The cost, cover and particulars of a policy have to reflect the latest data. For instance the vehicles of yesteryear are different to those of today. They come in varying models and sizes, which impacts cost, risk and function. Invariably all of this has to be factored into the cost of a policy and may even impact upon how they are calculated moving forwards.

 

Any policy is dictated by a number of variables. For instance, when you’re buying home insurance factors might include the area that you live in, the security of the premises and value of contents. Whilst reasonably constant, each of these elements has to be reviewed regularly to ensure that the policy reflects the latest circumstances. Failure to update any such data could lead to customers paying more unnecessarily, or insurers being exposed to greater risk.

 

When it comes to vans though, each of these elements is even more variable. Insurance companies have to use data collected over the months to determine whether certain vehicles are more prone to making claims. For instance, as with cars, more powerful vans capable of achieving greater speeds may be seen as having a higher chance of making a significant claim in the event of a collision. As such, the insurers must move with the current trends and reflect the vehicles that are currently in operation.

 

In the same way that a home might be impacted by a change in crime rate within a particular area, so too can any vehicle that is parked here.

Whether it’s the location of a business or your home where the van stays overnight, these changes will effect what you pay. It’s this kind of subtle alteration that many wouldn’t notice; however, when they are all combined, it can have a major difference.

 

Vans may also be used for interesting new tasks. The function of any vehicle will impact upon how much it costs to insure. This is highlighted in car cover too, with insurance increasing for those who use their vehicle for work purposes (over and above the normal commute) as well as additional mileage. Therefore if you’re a nationwide courier service and your vans drive thousands of miles each month, you can expect this to be reflected in the amount you pay – simply because you are deemed a greater risk.

 

Equally, vehicles which transport valuable goods and tools need to have cover that suits it (assuming that contents are going to be included). Again, this is fairly standard in any van insurance policy, but there will always be slight tweaks to the cost and perceived risk, which will have a knock-on effect. For this reason, and those that have been mentioned throughout this piece, van insurance isn’t just changing, but is actually constantly adjusting.

 

Of course these slight changes will only have a minimal impact on your policy premiums. In fact you may never notice them at all. But whether it’s a small tweak or a seismic shift, you can be sure that the insurance companies are regularly looking at the latest vehicular developments, traffic statistics and claims data to ensure that all policies are entirely up to date. Failure to do so could lead to lost revenue or competitive advantage.

 

So yes, van insurance certainly is changing and it’s a good thing too.