SC 2742 Scrutton Bland-Construction-12pp-FINAL

The rising cost of van insurance In the Chancellor’s first (and last) autumn statement, he announced that the cost of Insurance Premium Tax (IPT) will rise again in June, taking it from 10% to 12%.

Despite having one of the lowest IPT rates in Europe, the impact of the tax on the consumer continues to bite, with the average cost of insuring a commercial van now reaching around £954, 7.7% higher than in 2015. Younger drivers too have been affected, with those aged 25 and under often having to pay up to £3,025 per annum for cover. The focus for all insurance buyers, be it fleet managers or for a single vehicle policy, is getting the best value for money. Many commercial vehicle owners opt for using a broker to find the right insurance. Not only can this provide access to some of the most competitive rates but a broker will have access directly into the commercial market, and can ensure that you have all the correct covers and limits in place to protect you. Insurance is now a significant cost within anyone’s budget and it is important that you get it right. When talking to a broker it is critical that you are precise and honest. For example, you must specify what the vehicle is being used for and provide an up to date replacement value. Not only could these details have a significant bearing on your premium, but providing false or inaccurate information can invalidate a claim. Ryan W h ybrow, Insurance Broker at Scrutton Bland gives his top tips to consider the next time your policy is up for renewal:

1. Build up your no-claims bonus For every year you go without making a claim, you’ll build up a year’s worth of no-claims bonus. The longer you go without making a claim, the higher your ‘safe driver’ rating will be with your insurer. Some (but not all) insurers offer the opportunity to mirror your no-claims bonus from your car insurance policy, so make sure you let your broker know if you have any no-claims bonus so they can check. 2. Increase your voluntary excess Your excess is the amount of money that an insurer deducts from any claims settlement before it is paid to you. The excess can be adjusted so that the higher your excess, the lower your premiums tend to be. But this may mean that any future claims you make will have a lower settlement as a result, so proceed with caution on this course of action. 3. Make your van more secure It is common sense: the more secure you make your van, the less likely it is to be stolen. Make sure your vehicle is fitted with an immobiliser, alarm and tracker. This could help to lower your insurance prices. 4. Advertise your business on the van Getting your business name and contact details on the side of the van makes it easier to identify and therefore less likely to be stolen. And of course it may well bring in new business at the same time! If you declare to your broker/insurer that you have van signage it could help to lower your premium. Remember at the same time to make sure that your insurer includes cover for replacement sign writing in the event of a loss.

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