What are Van Insurance Groups
Van Insurance Groups have a major impact on the cost of your insurance policy. Be it a second-hand van or a brand-new model, you will undoubtedly have a specific vehicle in mind. From the model, make and year of manufacture there are many elements that can sway your choice. Considering the sizable impact van groups have on the price of insurance, this too should be at the forefront of your mind when purchasing a van. As a result we have put together a back-to-basics guide that will clarify some of the more indecipherable aspects of insurance and help you make an informed decision when purchasing your next van.
Most motorists know that the kind of vehicle they own will heavily impact on the price of their premiums. But they may not understand how the insurer calculates each premium. As in the case of cars, van groups are set by a governing panel, including members such as the Association of British Insurers (ABI) and Lloyds Market Association (LMA), who meet regularly.
These members draw on a number of factors and data provided by Thatcham, a motor insurance research center, to help them determine which van goes into which group. As a result, there is now a list of 20 groups into which vans can be placed, the lowest group being the cheapest to insure and the highest group the most expensive. There are 6 main factors these reviews are based on and help determine the cost of your premium:
- Parts cost – The lower the cost of parts the more likely the van will be entered in a lower cost group.
- Overall cost to repair the vehicle – This also determines which group the van goes into, and is directly linked to the parts cost.
- Performance – Statistical evidence shows the faster the vehicle the higher the likelihood of a claim.
- Engine size – Following on from performance, the larger the engine the more powerful the vehicle, increasing the likelihood of an accident.
- Weight – The heavier the vehicle the more difficult it is to drive and the more expensive to fix, resulting in higher premiums.
- Security – If the van is seen as being difficult to break into and is fitted with security features as standard, the premium will be lower.
Insurance groupings are not the only thing used to calculate premiums – insurers also look at the drivers using the vehicle (age and driving record), use of vehicle (work/pleasure and courier/builder), postcode of vehicle (where secured at night) and any modifications.
In summary, the higher the group the higher the premium. So a Citroen Nemo 610 Van with a small engine might be in group 3, a medium wheel based Ford Transit could be in group 11 and a Mercedes Sprinter 313 HR in group 16.
Find further information here on van insurance or alternatively, get a quote for your van insurance online.
If you need to insure your van for a short period of time, the RAC’s Temporary Van Insurance option is right for you. Get cover for your van from one hour to 30 days.