Seven common mistakes that could invalidate van insurance

Van drivers are being warned of the common mistakes that could affect their ability to claim on insurance in the event of an accident.

Insurance experts from Quotezone.co.uk have shared seven ways van drivers may unknowingly invalidate their insurance – including how it looks, where it’s parked and what it’s used for.

There are more than 3.6 million vans used for business across the UK, many of which likely display company branding.* However, insurers class signwriting as a modification to the vehicle that must be declared – failure to do so could leave tradespeople at risk of invalidated insurance.**

Another common mistake which can lead to insurance complications is a messy van, particularly if heavy tools or goods are left unsecured and cause an accident.

Misinforming insurers about details such as where a van is parked overnight and how the van is used can also lead to insurance problems in the event of a claim.

Greg Wilson, van insurance expert and CEO of Quotezone.co.uk, said: “Small oversights can unfortunately leave van drivers unprotected when they need their insurance most.

“If a van is stolen or broken into with tools inside, and the branding suggests it’s being used for business that wasn’t declared, insurers could look to cancel the policy for non-disclosure.

“It’s crucial to take the time  to review the policy, making sure everything from signwriting to overnight parking is accurately recorded. It could be the difference between a successful claim and being left out of pocket at the worst possible time.”

Seven things that could affect van insurance claims:

Unsecured goods and mess

In the event of an accident caused by unsecured tools or goods, an insurance company may refuse to cover the claim if it is found that the driver was not looking after their van properly. Drivers also risk fines, penalty points, and serious harm. Loose objects can become lethal in an accident, with research suggesting a 20-pound object at 55mph has a force of 1,000 pounds on impact.***

Undeclared signage and branding

Signwriting or company branding is often classed as a modification by insurers and must be declared. While it may seem like a harmless upgrade and great for the company’s visibility, failing to update the change with the insurer may invalidate the policy. Insurance companies view signwriting as potentially increasing the likelihood of theft or vandalism, viewing it as a modification because it alters the van’s exterior appearance.

Class of use

Tradespeople who use their van for commercial purposes – even if it is only occasionally – should declare this. A common mistake is selecting ‘for social, domestic and pleasure’, but if drivers are then involved in an accident while using the van for business purposes, the insurance policy could be invalidated.

Parking location

It’s important to be honest about where the van is parked overnight. Doing so falsely could create serious insurance problems in the event of a break-in, leading insurers to potentially reject claims. Vans are attractive targets for thieves and tool theft is a serious problem in the UK.

Poor vision

The Highway Code states drivers must slow down or come to a stop if necessary when driving is impacted by poor visibility from bright sunlight. Failure to do so can lead to fines, nine penalty points, and a potential driving disqualification. Drivers must also ensure they wear appropriate sunglasses. Category four lenses are much darker and must not be worn while driving. In the event of an accident due to incorrect eyewear or driving when visibility is poor, insurance is unlikely to offer protection.****

Ignoring service lights

Insurers could refuse to pay out if an accident is linked to a known fault that had not been addressed, such as worn tyres, faulty brakes or an engine warning light. It is a legal requirement under the Road Traffic Act 1988 for motorists to keep their vehicles safe and roadworthy. Driving a vehicle in a dangerous condition can lead to fines of up to £2,500, three penalty points and even a driving ban.*****

Non-compliant plates

Number plates in the UK must be made from reflective material, cannot have a background pattern, and characters must be solid black, non-reflective, and not removable. Characters also need to be a certain height and size with a standard font, spacing and no italics. Insurers require vehicles to remain road legal at all times. A number plate in violation of these restrictions may invalidate a van’s insurance.******

Quotezone.co.uk helps van drivers compare and save on all sorts of products such as van insurance, breakdown cover and even fleet insurance. 

References:
*https://www.gov.uk/government/publications/running-a-fleet-of-vans/running-a-fleet-of-vans
**https://www.quotezone.co.uk/van-insurance/guides/how-van-branding-could-invalidate-your-insurance
***https://ecology.wa.gov/blog/june-2020/secure-your-load-prevent-litter-and-save-lives
****https://www.gov.uk/guidance/the-highway-code/driving-in-adverse-weather-conditions-226-to-237
*****https://www.gov.uk/check-vehicle-safe
******https://assets.publishing.service.gov.uk/media/6694e379fc8e12ac3edafc60/inf104-vehicle-registration-numbers-and-number-plates.pdf

Photo credit – iStock.com Marc Dufresne

This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.