Commercial van insurance is a prerequisite by the law; it is prohibited to drive in the US without insuring first your vehicle.
There are three types of commercial van insurance, with each giving different tiers of protection for different fees.
The first one is third party insurance. This is the minimum level or the lowest allowed by the law. This covers the damage to the vehicle and the other party’s vehicle and any injury that may have been sustained by any of the members of the other party. This does not cover the driver of the van itself.
The next level of insurance is the third party: fire and theft type. This commercial van insurance gives the same protection as the former, but with added security. As it implies it also covers damage from fire and theft. Of course, you need to file a police report before you can claim the insurance.
Now if you want or need full protection, a fully-comprehensive or full coverage commercial van insurance is the best way to go. It does not matter if the accident is your fault – you will still be covered. This insurance also covers vandalism, fire and other damages.
Sometimes if you use your van for both personal and commercial purposes, it is better to determine first if what you need is personal or commercial van insurance. If the vehicle is registered to a business then obviously, even if it is just used to go to the office, it still needs commercial insurance policy. If it’s registered under a private individual then the principal use should be determined. If it’s used more for commercial purposes like carrying passengers or transporting goods then commercial insurance is more appropriate.
There are many insurance companies which offer competitive prices and great service on their policies. It is best to ask for professional advice with regard to the type of policy the company van needs. An experienced advisor could recommend the most suitable deal or policy and the right company to go to for this. Some insurance companies offer extra service or additional benefits like accident assistance or probably a temporary replacement car or coverage of legal expenses should anything untoward happen. Many factors need consideration, not just the price, so it is better to do a thorough research before making the final decision regarding the vehicle’s insurance.
By Alexis Dean