Is size really everything? How van size affects your insurance premium
While many people assume that all van insurance is priced similarly, regardless of size, there are key differences in how various types of vans affect claims frequency, repair costs, and even operational expenses like fuel and maintenance.
In fact insurance premiums are typically lower for businesses operating smaller vans under 3 tonnes (3T) for Own Goods use due to the following reasons:
Easier to Maneuverer, Lower Risk of Accidents
Smaller vans such as the Ford Transit Connect, VW Caddy and Renault Kangoo are naturally easier to maneuverer, especially in tight urban environments or when navigating congested areas. Their compact size means they can park more easily, make tighter turns and generally offer more control to the driver. This reduces the likelihood of accidents, especially in high-traffic areas where larger vans might struggle.
The reduced risk of collisions translates directly into fewer insurance claims. When insurers assess a fleet, they take into account how likely a vehicle is to be involved in an accident. As smaller vans have a lower frequency of accidents, insurance premiums reflect the reduced risk, saving business owners money in the long run.
Familiarity
Another key factor is driver familiarity. Smaller vans are often similar in size and handling to everyday vehicles like family cars or SUVs. This means drivers are generally more comfortable and experienced in operating these types of vehicles, decreasing the chances of mistakes that could lead to accidents or damage.
This is particularly important for businesses that may have drivers switching between different vehicles or have employees who aren’t professional drivers by trade. Insurers recognise that when drivers feel more confident behind the wheel, the risk of incidents drops, which is reflected in lower more favourable premiums for smaller vans.
Lower Repair Costs
In the unfortunate event that a van does need repairs, the cost of fixing a smaller van tends to be significantly lower than for larger, more complex vehicles.
Insurance premiums take into account the cost of potential claims, including repair costs. The more expensive a vehicle is to repair, the higher the insurance premium tends to be.
Smaller vans are typically made from more standard components, which are easier and cheaper to source, and quicker to fix.
The size of the van you operate can have a significant impact on your insurance premium
Understanding the above factors, it’s clear why insurers adjust premiums based on van size. Smaller vans present a lower risk profile, both in terms of accident frequency and the cost of repair.
Flock have been monitoring this closely and will be applying lower premiums to this vehicle sector in future new business and renewal quotations, allowing business owners to take full advantage of the benefits that smaller vans bring.