Difference Between Commercial And Commercial Van Insurance Cover

By: Dan Kelly

People who drive light delivery vehicles may understand that there is a bit of confusion when it comes to the subject of van insurance. Often drivers use this vehicle for personal and business purposes. The confusion comes in when determining how it should be covered. There choices are business cover and personal cover. The premiums could be significantly different. It is therefore critical that you obtain the right cover for it.

Business vehicles should be registered in the name of the business and would be required to be covered under business cover. The vehicle will then have to be registered in the name of the business. A sole trader is allowed to have the car registered in his own business. The key determining factor is what the car is be used for. If it mainly business then business cover will be needed.

If employees use the car, you will have to get commercial insurance. You will probably have to provide a list of drivers on the policy. The driving history of the employees will also affect your premium. If you visit clients or transport goods from your place of residence or employment to theirs, you will also need a commercial policy.

The premium will vary, depending on the risk factor of items that you are transporting. Items that are generally transported include tools or supplies, hazardous materials, cleaning materials and perishable materials.

The place where the vehicle is parked plays a significant role in the rate you will be charged. The risk of your car being damaged or stolen when it is parked in a locked garage is significantly lower than in the street. Added security features such as alarms, immobilizes and tracking devices will go a long way to decreasing the risk.

For people using vehicles for business and specifically transporting goods, van insurance is necessary to insure the goods being transported.

Article Source: http://yourfinance.co.za

About The Author
Did you compare van insurance? Well you should do it if you own a van. Van insurance comparison is important when it comes to getting cheaper insurance.