Learn About Van Insurance and How They Calculate Premiums
insurance (Photo credit: Alan Cleaver)
Vans are small types of caravans that are used to transport goods, as well as people, from one destination to the other. Since vans are used more frequently in comparison to caravans, they deserve to be under the aegis of the best insurance cover. Insurance companies for example AXA Business generally cover the vehicle on the basis of its use. All one needs to do is to locate a company that agrees to insure your ride after considering the purpose of your automobile.
Business van insurance is ideally taken in order to make sure that your vehicle does not remain off road, in case of breakdowns, accident or theft of the goods being transported. Most of the van owners and drivers are usually not quite impressed by the questions asked by the insurance firm executives prior to providing protection to a vehicle. However, these questions help them in ascertaining the amount of insurance premiums. Commercial van insurance companies consider certain factors while calculating the amount of premiums, some of which are discussed below:
1. Ratings – These ratings are given in order to determine the level of risk and are based on several factors. The monetary value of the vehicle, maximum possible damage to the van and the cost of repairs, performance of the vehicle and finally, whether the van is protected by a security system or not.
2. History of Claims – Commercial van insurance companies should know the claim history of the van, especially during the past 4-5 years. The more number of claims one has, the more costly will new commercial or private van insurance be.
3. Driving Convictions – This is another factor that the business van insurance companies lay special emphasis on. The owner or driver are checked for any license convictions in the past 3-5 years and the more serious the conviction, the higher would be the premium charges.
4. Drivers – The insurance companies are also interested in knowing more about the drivers that are to be covered in the policy. Depending on the drivers’ experience and their past records, there could be some extra charges added to the overall van insurance cost.
5. Occupation – This is one of the most important factors considered by insurance companies while calculating premiums. Certain occupations involve high degree of risk such as transporting valuable goods and, thus, will be required to pay more premiums.
These are some important factors that the insurance companies keep in mind while calculating the amount of premiums. It is important to reveal the facts to the insurance companies in order to get the best insurance quotes for a private or commercial van.
Category: Car Insurance
