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Your commercial van needs business auto insurance as personal car insurance will not apply.
Car insurance can be confusing, but it gets trickier for business owners with commercial vans. While you may want to insure your van under a personal policy, that won’t provide coverage during business use. Instead, you’ll need commercial auto insurance for vans to protect it while you’re on the job.
Our team carefully evaluated the best auto insurance companies to determine which ones provide high-quality but affordable coverage. The easiest way to find excellent auto insurance for vans is by comparing rates from multiple providers before making a final decision.
Personal Insurance Won’t Cover Commercial Vans
You’ll need commercial auto insurance if you use your van for any income-generating purposes. That could mean transporting people or goods from place to place or using your van as a work vehicle. Note that simply commuting to your workplace does not count as a business operation.
Regular policies don’t provide auto insurance coverage for business uses. In other words, your insurance agent could deny a personal claim on your van if it gets damaged while being used for commercial reasons.
Can I Get Personal Auto Insurance for a Commercial Van?
It’s extremely rare to get auto insurance for vans through a personal insurance policy. The only time when this could happen would be if you own a commercial-style van but only use it as your personal vehicle.
If it’s primarily or even sometimes used for business, you’ll need to buy commercial auto insurance for vans. Those who use their van for both personal and business purposes must purchase each type of coverage so that their vehicle meets state requirements.
How To Get Auto Insurance for a Commercial Van
The process of getting auto insurance for vans is similar to that for getting any other type of car coverage, but it has a few differences. You’ll need to list out each vehicle your business uses on a commercial van insurance policy, and for larger companies it may be worth considering fleet insurance.
What Types of Coverage Do I Need?
It’s possible to customize coverage levels on van and truck insurance as long as you meet your state’s general liability limits. Head to your state’s department of motor vehicles (DMV) website to find out exactly what limits are required. Note that standards may be different for personal and for commercial vehicles.
Below are some of the main types of coverage that can be added to a commercial vehicle insurance policy.
- Bodily injury liability insurance: This mandatory liability coverage type will pay for injuries to other drivers in accidents caused by your commercial van.
- Property damage liability insurance: Physical damage to other vehicles and pieces of property will be paid for by this mandatory coverage.
- Uninsured motorist and underinsured motorist coverage: These coverage types pay for damages to you and your van after an accident with a driver who lacks insurance.
- Medical payments coverage: Many of your medical expenses will be covered if you pick up this optional type of auto insurance.
- Personal injury protection: You’ll receive payments for your medical bills and for lost wages if you select this insurance coverage.
- Collision coverage: This insurance option lets business owners receive protection for their own vans after an accident they caused.
- Comprehensive coverage: This optional insurance type serves as physical damage coverage for your own van after instances of severe weather, theft or vandalism.
- Roadside assistance: While you don’t need roadside assistance or towing services, they may be valuable if you quickly want your commercial van back on the road.
When deciding on your level of commercial auto coverage, consider the financial risk that an accident could pose to your company. Both large and small businesses typically choose high coverage limits, with policies often starting at $500,000 and heading into the millions.
Is Commercial or Personal Van Insurance Cheaper?
Commercial auto insurance for vans doesn’t come cheap, especially when compared to a personal policy. Below, we’ll run through a few of the reasons why commercial car insurance usually comes at a high cost.
- Commercial vans often have higher values than other types of vehicles
- They tend to be driven more often and over farther distances
- Some cargo vans have a higher-than-average rollover risk
- The value of items on a commercial vehicle tends to be higher
While commercial car insurance for vans is pricey, you’ll discover more affordable rates if you get multiple auto insurance quotes before choosing a plan. That way, you’ll be able to find out which deals are available on the market.
What Affects the Cost of Commercial Van Insurance?
Remember that your vehicle’s body style is far from the only factor affecting your monthly premium. The cost of auto insurance for vans will be impacted by the factors below:
- The type of van you own: Delivery vans, minivans and passenger vans will all have different insurance costs due to their varying risk factors.
- The van’s value and age: Older vans are worth less, so they’re typically cheaper to insure. They may lack safety features, though, which could increase your rates.
- Your type of business: Vans used in high-risk industries will cost more to insure.
- Your location and annual mileage: States with lower insurance requirements will have comparably cheap auto insurance for vans. On the other hand, those who have a high annual mileage on their vans are likely to face high costs.
- The driving records of users: If those behind the wheel of your van have poor driving records, that will probably be reflected in your commercial auto insurance rates.
- Chosen coverage levels: Business owners who add extra insurance coverage for their vans will face higher-than-average costs.
- Discounts you qualify for: Savings opportunities may potentially lead to lower rates for commercial van insurance.
- Chosen deductible: If you have a high deductible, you’ll pay lower monthly rates.
While auto insurance for vans is rarely cheap, it’s absolutely necessary for anyone who drives a vehicle for business purposes. Paying for commercial coverage each month is much better than filing a personal auto insurance claim and having it rejected.
Our Recommendations for Auto Insurance
If you need to find auto insurance for a van, we suggest considering options from GEICO and State Farm. While these providers are both affordable and of a high quality, it’s always smart to compare van insurance quotes from other auto insurers as well.
State Farm: Best Customer Experience
We name State Farm as the Best Customer Experience auto insurance choice in the U.S. due to its excellent range of local agents and strong customer service. It has many discount opportunities such as those for good driving, defensive driving, having passive restraints in your vehicle and for bundling multiple types of insurance.
GEICO: Most Discount Options
In addition to having affordable auto insurance rates, GEICO offers excellent accessibility to a wide range of car insurance discounts. Potential savings opportunities include ones for having multiple vehicles or policies, for wearing a seat belt, for being a good driver and for being a federal employee.
Frequently Asked Questions (FAQs)
Are commercial van and car insurance the same?
If you have a commercial van, your personal auto insurance policy will not cover it. You’ll need a separate insurance policy if you ever use the van for business purposes. Those who use a van for both personal and commercial uses will likely need separate plans for each situation.
Is commercial van insurance more expensive?
In most cases, commercial auto insurance for vans will be more expensive than coverage on a van that’s only intended for personal use. This is because car insurers consider vehicles used for business purposes as more likely to get into accidents and pricier to cover after a claim.
Do vans have to have commercial insurance?
If you use your van for commercial purposes, it must have business insurance. You don’t need this special type of coverage if you only use your van for personal reasons, however.
Is my van a commercial vehicle?
If you ever use your van for anything related to business, it needs a commercial auto insurance policy. This means that those who use vans to shuttle paying customers or to move products must pick up commercial auto insurance for vans. If you aren’t sure whether your van is commercial, your best option may be to head to a local insurance agency.
