Commercial Van Insurance: Coverages and Costs
Commercial van insurance can cost $1,400 to more than $3,000 per year, based on factors like the vehicle’s age, where you live, and your driving record.
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Commercial van insurance covers damages to vehicles used for business. Also known as business van insurance, this coverage can protect your vehicle or fleet from damage from collisions, severe weather, vandalism, theft, and more.
If you use a van in your business or as part of your work as a contractor, you might need commercial van insurance to help financially protect you and your business.
Here’s what you should know about finding the right commercial van insurance for your business needs.
Quick Facts
The average cost of commercial van insurance ranges between $117 and $270 per month.
It’s possible to tailor business van insurance for each vehicle if you need different coverage for each van in your fleet.
Unlike personal car insurance, business auto insurance typically has a combined single limit that covers both bodily injury and property damage, rather than split limits.
What is commercial van insurance?
Commercial van insurance protects vehicles against financial losses from accidents, property damage, and lawsuits.
If you or your employees drive a van for your business, it’s a good idea to get commercial auto insurance. This coverage can help pay for vehicle repairs following an accident. It can also help take care of medical bills if one of your employees injures someone else while driving the van.
Business auto insurance generally comes with higher limits and broader coverage than personal car insurance policies.[?]
A personal auto policy usually covers a vehicle when you use it for daily errands, a commute, or for other personal purposes. Business car insurance policies specifically protect your vehicle during business activities, like making deliveries, hauling equipment or inventory, or transporting employees.
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Cargo van insurance
This type of van insurance policy protects vehicles that haul inventory, including goods your business uses to create products or the final products. It can also cover deliveries.[?] If your business regularly delivers goods to other businesses or customers, cargo van insurance can be a good choice.
Passenger van insurance
If your business involves transporting people in vans, you should have passenger van insurance. This coverage may make sense if your business shuttles tourists to and from the airport, runs travel tours, or operates as a taxi service. Organizations like churches and retirement homes may also need passenger van insurance.
Minivan insurance
In some cases, you might have a vehicle you use for small business as well as personal errands. A minivan might allow you to make deliveries and haul cargo for your business while also allowing you to take care of the tasks of daily life. Depending on the insurer, you might be able to get a van insurance policy that covers both business and personal use.
What commercial van insurance covers
A commercial auto policy generally has many of the same coverages you can get with a personal policy. But commercial insurance typically has higher coverage limits to protect your business.
Learn more about the common commercial van insurance coverages below.
Optional van insurance coverages
You might want to consider a policy with additional optional coverages that can help you reduce out-of-pocket costs in other situations.
Roadside assistance: If your van breaks down, roadside assistance coverage can help you pay for towing and other helpful services.
Rental coverage: Rental car coverage can help you pay for a rental if you need to rent a van while your business vehicle undergoes repairs in the shop following an accident.
Gap insurance: As a business owner, you may need to finance at least some of the vans in your company’s fleet. If you still owe money on a totaled van, gap insurance helps cover you for the remaining amount.
Van insurance vs. personal insurance
Small-business owners may start by using a personal vehicle for hauling cargo or goods. Once you start using a personal van for business purposes, you should get some type of business auto insurance.
Depending on how often you use the van for business and personal errands, you might be able to simply add a business rider to your personal auto policy. An insurance agent can help you figure out how to appropriately insure your van.
Commercial van insurance cost
Costs can vary widely among different insurance companies and depending on your business needs. It’s important to shop around to find the best coverage for your business. For example, you may receive an annual quote of $1,400 from one company and more than $3,000 from another for a van insurance policy.
Make sure you understand what coverage you need and get premium quotes from at least three to five companies.
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Factors that affect the cost of commercial van insurance
Several factors affect how much you pay for commercial van insurance, including:
How to save money on commercial van insurance
You can reduce the cost of your commercial van insurance policy in several ways:
Ask for discounts. Find out if your business qualifies for a business experience discount or some other type of discount.
Bundle coverage. If you cover multiple vehicles or get other types of business insurance through the same company, you may be able to reduce your overall cost.
Raise your deductible. If you’re willing to pay a higher deductible out of pocket before insurance kicks in, you’ll pay a lower monthly premium.
Pay attention to employee driving records. Hire employees with good driving records — especially if you know they’ll be driving the van regularly.
Keep your vans in a secure area. Keep the vehicles in your fleet locked and in a secure location. If you can show you take measures to protect your vans, you might get a lower price on your commercial van insurance policy.
Commercial van insurance FAQs
The following information can help answer your remaining questions about commercial van insurance. It can also help you make more informed decisions.
If you mainly use a van for business activities, it’s a commercial vehicle. You’ll need an appropriate commercial vehicle policy.
Many companies offer cheap commercial van insurance. You should compare quotes from several insurers to find the coverage you need at an affordable price.
Yes. If you use a van for business purposes, you should get commercial insurance. If you only use a van for personal errands with your family and friends, you likely don’t need commercial insurance. In that case, you’d only need a personal auto policy.
If you use a cargo van for business, you’ll need a commercial auto insurance policy.
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