How to save money on your van insurance: 20 practical tips

Vans spend more time on the road, are larger and heavier than cars, and typically have more powerful engines, often making them more expensive to insure. Whether you use your van for your business, or simply for leisure, getting the right van insurance cover at an affordable price is normally a top priority.

If you're worried that your van insurance costs are too high, and are wondering how to get cheap van insurance, you've come to the right place. In this guide, we'll cover 20 top tips that can help you keep your van insurance costs down.

What's covered:

• Why is my van insurance so expensive?
• What is the average cost of van insurance?
• 20 practical tips to save money on your van insurance
• FAQs

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Why is my van insurance so expensive?

Van insurance often costs more than car insurance, and there are several reasons behind this. Insurers calculate premiums based on risk, and vans typically present higher risk profiles than standard cars. Commercial use is one of the biggest factors. For example, delivery and haulage vans cover more miles and spend longer on the road, which increases accident risk, costing significantly more than vans used for social purposes. Other factors that influence insurance costs include:

• Policy type and level of cover

• Driver age and experience

• Driving history

• Vehicle type and value

• Gross vehicle weight

• Type of business

• Overnight location and storage

• Security

• Number of required drivers for business purposes

Also read: The 10 cheapest vans to insure in 2025

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What is the average cost of van insurance?

It's difficult to provide an accurate figure since insurance quotes vary massively depending on individual circumstances. However, according to the latest available data from Consumer Intelligence, most new van insurance quotes fell between £500 and £749, accounting for 20% of all quotes, while 18% were in the £750 to £999 range*.

How to get cheaper van insurance: 20 money saving tips

1. Choose a policy that suits your needs

'Any driver' or 'open driving' van insurance is a specific type of policy that allows multiple people to drive a single van, and is typically used by businesses with several employees who need access to the same vehicle.

However, these policies are typically more expensive than those with named drivers, because they represent a higher risk to the insurer. If your business doesn't need this level of flexibility, switching to a named-driver policy can be far more cost-effective. That way, you can restrict the number of drivers on your policy instead opting for 'open driving'.

Always check what’s included in your policy and avoid paying for extras you won’t use. For example, you won't need European cover if you never use your van abroad.

2. Pay upfront

Spreading the cost of your van insurance over monthly payments might seem convenient, but it usually works out more expensive than paying in full. That’s because monthly instalments often include added interest.

If you can, pay your van insurance in one go annually to keep your overall costs down. Using a continuous payment authority via credit/debit card can also ensure continuous cover remains in place.

3. Add a named driver to your policy

Adding an experienced named driver such as a spouse to your policy can help keep premiums down. Insurers assess each driver’s age, experience, driving history, and relationship to the main driver when calculating premiums, so including an employee, spouse or common law partner as a casual driver on your policy could save you money.

Equally, you should carefully consider who you add to your policy. The more drivers you add, the higher the risk of an accident or claim, and costs often rise if the policy includes multiple drivers - especially those with limited experience (e.g. young drivers) or a history of claims.

4. Accurately declare how you use your van

Don’t assume insurers know how your van is used. Many vans are used for work, but plenty are for personal use only. Make sure you state this clearly when arranging cover. For example, there’s no need to select business van insurance if your van is just for hobbies like fishing or travelling. If you do use it for work, make sure you choose the correct business class of insurance. Also, you must inform your insurance provider if you use your van to commute to your place of work.

5. Choose your job title and industry carefully

Your job title and industry plays an important role in determining van insurance costs. Insurers we work with use large amounts of claims data to determine which occupations are higher or lower risk. For example, delivery drivers often face higher premiums because of factors like high mileage and risk of theft, while trades like painters or carpenters usually attract lower rates. Here's what you can do:

• Be honest and accurate: Never misstate your job, as this can invalidate your policy and will be checked if you claim.

• Compare similar titles: If your role can be described in different ways, let us know and we’ll help determine this for you. One title could be cheaper than the other.

• Declare all roles: If you have more than one job, both must be disclosed so the insurer can assess the combined risk.

6. Make sure your van is accurately valued

Get an up-to-date valuation for your van to avoid overpaying on your premium. When calculating your van insurance premium, insurers consider the vehicle’s market value, so make sure you're declaring the accurate value of your van.

Underinsuring your van could leave you out of pocket and lead to reduced claims settlement should you need to replace it.

7. Limit your mileage

The more miles you cover each year, the higher your insurance costs are likely to be. Driving more increases the risk of an accident, which pushes premiums up. Cutting back on annual mileage can help reduce what you pay. Just make sure you’re honest with us about how far you travel because if your mileage isn’t reported correctly, it could lead to issues when making a claim. More importantly, deliberately underestimating your mileage is classed as insurance fraud and is illegal.

You could also consider a limited mileage policy, whereby you agree to drive under a set amount of miles per year. By doing this, you can qualify for discounts on your insurance premium.

If you're unsure about how many miles you drive a year, estimate your average weekly mileage and multiply that by 52. Alternatively, you could check your most recent MOT reports.

8. Avoid modifications

The only modifications that might reduce your premium are those designed to improve safety. They need to be industry-approved, and you must let your insurer know before fitting them. Practical modifications such as tow bars or roof racks typically don't affect premium costs, just make sure they are installed professionally.

Generally speaking, it's best to avoid modifying your van, especially if it's for aesthetic or performance enhancements. It may attract thieves, making the vehicle more likely to be stolen. Some insurers won’t cover modified vans at all, and those that do usually charge much higher premiums.

9. Choose a van in a lower insurance group

Choosing a van in a lower insurance group is a practical way to keep your premiums down. Just like cars, vans weighing up to 3.5 tonnes (light commercial vehicles) are placed into insurance groups from group 21 to 50. Group 21 vehicles are the cheapest to insure, while those in group 50 sit at the top end of the scale. Thatcham, the research centre for the Association of British Insurers, assesses how costly it would be to repair or replace a van after an accident.

They look at factors such as:

• Vehicle price: high-value vans cost more to write off

• Performance and engine size: faster vans with larger engines usually fall into higher groups

• Parts cost: cheaper parts often mean a lower group

• Repair complexity: longer repair times increase costs

• Security: strong factory-fitted security reduces theft risk

So, lower insurance group vans tend to be smaller with modest engines, modern safety technology, and low running costs, often making them cheaper to insure.

10. Improve your van's security

Thatcham approved security measures (alarm, immobiliser, tracker, steering, gear stick or handbrake locks) can help reduce risk of theft so make sure to mention any that you have fitted, especially if you have changed anything in the last 12 months.

11. Fit a dash cam

Fitting a dash cam can do more than record your journeys. Some insurers offer extra discounts if you have one installed, so it could help lower your premium. A dash cam also provides valuable evidence if you ever need to make a claim, making the process quicker and easier. It’s a simple upgrade that improves security and gives you peace of mind on the road.

12. Park off-road

Your van’s overnight location is a key factor in determining insurance costs. Keeping it in a garage is the safest option and usually means lower risk. If that’s not possible, a driveway, private land, or a locked compound is better than leaving it on the street. Give us as much detail as you can about where it’s stored to help us secure the most competitive premium for you.

13. Consider using a telematics device

A telematics device, or black box, tracks driving behaviour such as speed, acceleration, and braking, and sends this data to your insurer.

Taking out black box insurance can reduce your premium rate when its time for renewal - provided that you drive safely and sensibly - as it demonstrates to your insurer that you are a responsible driver, potentially leading to lower insurance premiums.

14. Use commercial van signage

If you use your van for your business, adding clear business signage to your van not only advertises your services, but also acts as a deterrent to thieves. A branded vehicle looks less appealing to criminals because it’s easier to identify and harder to sell on.

Displaying your company name, logo, and contact details sends a strong signal that the van is part of an active business, which reduces the risk of theft. Some insurers will offer discounts for this.

15. Professionally fit your van with racking or shelving

Professionally installed shelving or racking in your van can also help lower insurance premiums. Some insurer will offer discounts because a professionally fitted system keeps tools and equipment secure, lowering the risk compared to leaving them loose inside the vehicle.

16. Public liability insurance

Having public liability insurance in place can reduce your overall risk profile, and potentially help reduce your premium. Make sure you mention when requesting quotes for your van or any other business insurance, as some insurers will offer discounts.

17. Increase your policy excess

A voluntary excess is the amount you agree to pay if in the event of a claim, in addition to the fixed compulsory excess set by your insurer. By choosing a higher voluntary excess, you could bring down your insurance premium. In most cases, the bigger the excess, the lower the cost. Just make sure it’s an amount you can realistically afford if you ever need to claim.

You could also consider excess protection insurance to avoid being left exposed when you have to pay the full excess for a claim.

18. Build your no-claims discount

A no-claims bonus is a discount applied to future premiums when you avoid making a claim. It works as a reward for safe driving and responsible vehicle ownership. The longer you go without claiming, the bigger the bonus, which can lead to significant savings over time. It’s one of the simplest ways to keep your insurance costs down while showing your insurer that you’re a careful driver.

Once your no claims discount has reached the maximum level, you could consider purchasing NCD protection, which protects your NCD in case you need to make a claim in the future. This is usually subject to a maximum number of claims you can make within a set period while keeping your discount.

19. Shop around and compare van insurance quotes

Always take time to shop around before renewing your policy. By using a broker to compare quotes from different insurers you might find better deals and save money. Don’t assume your current insurance provider offers the best rate, even if your renewal price is largely the same as last year. Check other options first to make sure you’re getting the most competitive price.

20. Speak to a broker

At Howden, speaking to a broker means more choice and better value. Our brokers work for you, searching across a wide market to secure the best deal for your needs. Unlike comparison sites, we can access specialist products and negotiate on your behalf, saving you time and money. Plus, our advice is impartial and backed by industry expertise, so you’ll always get insurance cover that fits your business without paying for extras you don’t need.

*Source: Consumer Intelligence - Quoted Van Insurance Premiums Fall 5.0% but Price Cuts Could be Slowing

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