Lowering the cost of Van Insurance for Businesses
The rise in petrol duty in the UK is set to take place at the start of 2010 along with the return of V.A.T to the pre-economic ‘catastrophe’ rate of 17.5%, making the position of businesses a particularly tricky one financially. This will especially be the case for haulage firms and businesses that use commercial vehicles.
An area that has already seen a fluctuation in cost cutting measures with businesses has been van insurance.
Some of the methods that have been used to reduce costs and overheads for both businesses and individuals have been to change the types of vehicle insurance policies; from ‘Fully Comprehensive’ cover to ‘Third Party, Fire and Theft’. However, this short term measure could potentially cost individuals and especially businesses more in the long term.
A ‘Third Party, Fire and Theft’ policy won’t cover against damage to a vehicle, only other people and their property. Therefore, if you’re unlucky enough to get involved in an accident you could spend more money than you thought you would actually save, by making a changing to a policy.
There are several ways that businesses can cut the cost of their commercial vehicle insurance policies, for example; looking to see whether there is a no claims discount; most insurers will offer a no claims discount saving providing there have not been any claims in the past (this will extend to using a bonus that may have been earned on another vehicle, providing that it has not already been used).
Installing a tracker device on vehicles, which enables it to be located if it has been lost or stolen and offering to pay a higher voluntary excess will both help to get cheap van insurance and reduce the cost of insurance policies in general.
However, the simplest method of getting a lower insurance premium is to improve the security on the vehicles, such as; making sure that they have secure doors, an alarm system in place and also an ignition lock.