Van Leasing Insurance — What You Need
Insurance is one of the first practical questions when you lease a van. This guide explains what you need, why, and what to ask when you get quotes. We are not an insurance broker, so we cannot advise on a particular policy or recommend providers.
Insurance is your responsibility
Insurance is not included in a van lease. Our monthly rentals cover the use of the van over the agreed term, not the insurance. You arrange your own cover, and you pay for it separately, so add it to your budget alongside fuel and servicing.
The funder owns the van, and wants it protected. Cover normally has to be in place before the van is delivered, so arrange it as soon as your application is approved.
What level of cover?
Third party insurance covers damage you cause to other people and their property. Comprehensive insurance also covers damage to your own van. Because the funder owns the van, lease agreements typically require comprehensive cover. The exact requirement is in your agreement, so read it, and check with the funder if you are unsure. The funder is usually noted as the owner on the policy.
Tell the insurer the van is used for business. Say who will drive it, and what it carries. A policy bought on the wrong basis may not pay out when you need it.
Tools and goods
Standard van cover often does not include the tools and equipment you keep in the van, or goods you carry for customers. Ask whether these are covered, or whether you need separate cover.
Gap insurance
If a leased van is written off or stolen, the insurer normally pays out its market value at the time. That figure can be lower than the amount you still owe the funder under the agreement, and you remain liable for the difference. Gap insurance is designed to cover that shortfall. Whether you need it depends on your lease and your risk, so ask your broker whether it is worth having.
Fleet insurance
If you lease two or more vans, a fleet policy may be simpler than separate policies. It puts all the vehicles on one policy, with one renewal date, and it can make adding or removing vans easier. A broker can tell you whether it would work for your business.
What happens if you don't insure
Driving without insurance is a criminal offence. If the van is damaged, stolen or written off and you are not properly covered, you stay responsible to the funder for the loss. Failing to keep the required cover is also a breach of your agreement, which can have serious consequences, including the funder ending the agreement. Do not let cover lapse.
Getting quotes
Use an insurance broker or a comparison site, and compare like with like. Check what each policy covers, the excess, and any restrictions on use or drivers. We do not recommend providers, and prices vary, so it is worth getting several quotes.
Next steps
See the van leasing page for the full range, and the van leasing with insurance page for deals and the questions people ask most. If you are new to leasing, read how van leasing works.
Swiss Vans Ltd is authorised and regulated by the Financial Conduct Authority as a credit broker, not a lender. FRN 668283.