Commercial van insurance can vary in price, coverage, and overall quality. It’s essential to look thoroughly into each company you’re considering. The best insurance companies offer more than just an excellent rate to their policyholders—they provide a quick and convenient claims process along with exceptional customer service, and multiple coverage options.
Many also offer discounts that reward customers for good driving habits, or for having certain safety features on their vehicles.
How Much Does Commercial Van Insurance Cost?
Insurance providers consider several factors when it comes to calculating your insurance costs. Your age, gender, geographic location, and driving record are just a few of these factors—your vehicle’s make and model are also at the top of the list.
Safety ratings, theft rates, and the overall value of your vehicle also play a role in determining insurance rates.
Cheap Cargo Van Insurance Coverage
If you’re looking for commercial van insurance, you’ll probably notice that different insurance companies offer a variety of price points ranging from cheap to expensive.
Even though it might be tempting to purchase the least expensive policy, that’s not always the best choice.
Before committing to an insurance provider, it’s essential to understand precisely how much coverage is included in the price.
Additionally, checking into the company’s reviews, customer satisfaction ratings, and its financial strength can give you a better idea of how well the company serves its customers.
Average Commercial Van Insurance Costs
As mentioned above, there are several vehicle-related elements that your insurance provider looks at when determining your policy rate.
Here’s a breakdown of what these elements include, along with some other considerations to keep in mind when buying insurance for a commercial van.
Safety Ratings and Damage Thresholds.
Every year, the National Highway Traffic Safety Administration (NHSTA) performs crash and safety tests on hundreds of vehicles.
Tests are performed across several categories, and then companies are assigned safety ratings of 1 to 5 stars in each.
These ratings play a significant role in determining the rate you pay for commercial van insurance.
Here are a couple of examples of safety ratings that have been assigned to commercial vans:
2016 Ford Transit Connect Wagon 4WD
Safety ratings for the 2016 Ford Transit are fantastic.
This commercial van performed well in all categories and received an overall safety rating of 5 out of 5 stars.
These ratings will reflect positively in the cost of insurance for the 2016 Ford Transit.
Below are the scores the 2016 Ford Transit received in each category.
|Frontal Crash -- Front Driver Side||4 out of 5 stars|
|Frontal Crash -- Front Passenger Side||4 out of 5 stars|
|Combined Side Barrier Pole Ratings -- Front Seat||5 out of 5 stars|
|Combined Side Barrier Pole Ratings -- Rear Seat||5 out of 5 stars|
|Side Barrier -- Driver||5 out of 5 stars|
|Side Barrier -- Rear Passenger||5 out of 5 stars|
|Rollover||4 out of 5 stars|
2009 Dodge Sprinter 2500 Cargo
The 2009 Dodge Sprinter 2500 Cargo doesn’t have an overall safety rating.
It was only tested in the Rollover category, for which it received a rating of 1 out of 5 stars.
The lack of tests performed on this vehicle, combined with its poor Rollover safety rating, is likely to mean its insurance rates could be rather high.
Comprehensive and Collision Coverage
The overall value of your vehicle is another significant factor considered in insurance rates calculations. This value is determined mostly by your van’s year, make, and model, as well as its condition and included safety features.
- According to Kelley Blue Book, the value of a 2016 Ford Transit 350 Van with standard features is between $23,579 and $27,408.
- The 2009 Dodge Sprinter 2500 Cargo is much lower, with a fair market range between $12,942 and $16,043.
These price variations are one of the reasons for the wide variety of price points available for commercial van insurance.
Claims Frequency and Potential to Cause Damage
The Insurance Institute for Highway Safety (IIHS) publishes information for insurance companies about losses related to specific vehicles.
Vehicles are rated in several categories.
Here’s how the Ford T-350 Transit Cargo van was evaluated according to the IIHS’s 2015 – 2017 Insurance Loss Report:
|Property Damage||Not rated|
|Personal Injury||Not rated|
|Medical Payments||Not rated|
|Bodily Injury||Not rated|
There’s a good chance that your insurance provider will offer you a discounted rate if you’re driving a commercial van with plenty of safety features such as:
- anti-lock brakes,
- driver and passenger airbags,
- lane departure warning,
- or a vehicle back-up camera
New models usually have better safety features, so if you’re looking to take advantage of safety discounts, it’s best to purchase a recently manufactured commercial van.
What’s the Best Company for Van Insurance?
When you’re ready to purchase vehicle insurance for your commercial van or any other automobile, it’s a good idea to request and obtain quotes from multiple commercial insurance companies.
Once you’ve gotten various quotes and narrowed down your choices, consider each company’s customer satisfaction ratings, coverage options, and claims satisfaction rate.
It’s also a good idea to think about the following:
- The company’s financial strength – This may seem odd, but assessing an insurer’s financial strength ultimately speaks to its ability to meet its obligations.
- Licensing – Checking the company’s licensing status is important, as it can help you find any official complaints or legal actions against it.
- Your comfort level with the insurance agent – If an agent seems pushy, and less than forthright, this should be a huge red flag. Though a consumer’s interaction with the agent may be a one-time thing, it can be an indicator of their future relationship.
- Customer service satisfaction – Looking at how existing customers view the company is essential to finding out any potential problems before committing to a contract.
How to Get the Best Commerical Van Insurance Rate
When you meet with a representative from your chosen insurance provider to purchase a policy, ask the following questions to make sure you’re getting the best possible rate:
- Do you offer a lower price if I’m accident-free?
- Is there a discount for bundling policies?
- Do the safety features of my van qualify me for a lower rate?
- If I pay in full or set up automatic payments will I receive a discount?
Automobile manufacturers such as Ford, GMC, Chevrolet, and Mercedes all produce different models of commercial and cargo vans. These are available at a variety of price points and can accommodate different load-sizes and passenger counts.
Many of these vans have not been rated for safety and crash prevention, and therefore insurance rates may be on the high side. However, new models with up-to-date safety features, or those that have passed NHSTA safety tests, may qualify for lower rates and discounts.
Now that you’ve read the above information, you should have a better understanding of how commercial van insurance rates are calculated. Use these tips and suggestions to negotiate the best rate for your insurance policy and to obtain discounts whenever possible.*While we make every effort to keep our site updated, please be aware that "timely" information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.