4 Reasons Why Is Van Insurance More Expensive than Car Insurance
For a service industry business, having a van is almost necessary.
The van is not just a mode of transport for the business personnel but it is also where all of the important tools and equipment is stocked. For example, a locksmith’s van holds all the important instruments that are needed for lock picking or opening the lock. It means that the van hold a prominent place in conducting the services effectively.
However, the operational cost of a van is much higher than the car and van insurance plays a big part in it. The van insurance costs more than the car insurance.
Here are the five reasons van insurance costs more than the car insurance.
1- Van is a Bigger Automobile
The size of the van is usually bigger than the size of an average car. As the size of the vehicle affects its insurance premium, the van insurance costs are more than the other type of vehicles. According to the size of the van, the cost can also vary within different van models.
2- Van Has More Powerful Engines
Vans not only have bigger bodies than the car, but they also have more powerful engines. The engine’s horsepower determines its insurance cost. More powerful engines have higher estimated value of the asset requiring more expensive insurance. So, it is one of the difference between the two insurance.
3- Van Has More Valuables
As mentioned above, the vans also stock inventory of tools and specialized instruments. These tools and instruments are much costlier than the contents of a private car or even cab. These contents are also at the higher risk of being stolen from the car.
The higher cost of the possessions in the van result in the higher premium for van insurance. The service vans are especially more expensive to insure.
4- Vans Are Driven More Miles
A private car is usually driven specific miles for example from and to the workplace. But, a service van is driven much more extra miles than the private car. A service van is driven to the customer’s location or where the service is needed. It can significantly raise the premium of the van insurance.