Cheap van insurance UK: how tradesmen can cut costs without nasty surprises

Most tradesmen know the feeling. The renewal lands in your inbox, the price has crept up again, and you are tempted to grab the cheapest quote and move on.

Wanting a lower premium is sensible. The risk is when the price only drops because the policy no longer matches what you actually do, or because key details have been smoothed over. That can leave you arguing about cover on the day you need it.

This guide looks at what “cheap van insurance” really means, which levers can bring the price down, and where cutting corners or hiding details can put the policy itself at risk.

Who this guide is for

 This guide is mainly for:

• Self employed tradesmen with one van
• Small firms with a couple of vans on the road
• Anyone who uses a van for work and wants to reduce their premium without risking cover

If you are a full time courier or run a mini fleet, some points still apply, but you may also want to read the more focused guides on those topics.

What “cheap van insurance” really means

 “Cheap” can mean two very different things:

• Paying less for the same or similar cover because you have shopped around and tidied up your risk
• Paying less because covers, sums insured or key details have been cut back or left out 

The first is where you want to be. The second might be fine if it is a clear choice, but becomes a problem when the policy looks cheap because:

• The van has been given an unrealistically low value
• Mileage is set far lower than you actually drive
• Part time jobs or side delivery work have not been mentioned
• You have forced your use into “own goods” when hire and reward looks more accurate
• Someone else is shown as main driver when you are the one using the van for work

A better way to think about it is:

“How can I get good value van cover that matches how I actually work, at a fair price, without buying bits I do not need or risking the policy.”

That fits with the general idea behind the FCA Consumer Duty. Providers should explain their products clearly, and you should give honest details about your risk.

Step 1: Get the basics of cover right first

Before you focus on saving money, it helps to get the foundations straight. That includes being open about how you use the van and the value at stake.

Levels of cover

For the van itself, you usually choose between:

Third party only: Covers damage or injury you cause to other people and their property. It does not cover your own van.

Third party, fire and theft: Same as third party, with added cover if your van is stolen or damaged by fire.

Comprehensive: Can also cover damage to your own van, even if you are at fault, within the policy terms.

Many people assume third party is always cheapest. That is not always the case. In some markets, comprehensive can be priced keenly for certain drivers or vans.

Whatever level you pick, it should still feel like a sensible choice on a bad day, not just on a cheap quote day.

Class of use for trades and delivery work

 Insurers also care how you use the van. Broad classes include:

• Social, domestic and pleasure (SDP)
• Social and commuting
• Business use, carrying your own tools and materials between jobs
• Courier or hire and reward, if you carry goods for others as a paid service

If you are a plumber or electrician driving between jobs with your own tools and stock, “own goods” business use may fit.

If you are paid to deliver parcels, hot food, or other people’s goods, even part time, insurers may see that as courier type work instead. That usually needs a different class of use and may be priced differently.

 Trying to squeeze courier type work into an “own goods” class just to get a lower price can look like a saving at the start, but may cause problems if a claim is checked against what you actually do day to day.

Step 2: The main things that affect the price

 Once the basics are right, you can look at the main rating factors. These can vary between insurers, but the themes are similar.

You, your licence and your claims history

Points that affect price include:

• Your age and driving experience
• How long you have held a full licence
• Any motoring convictions or penalties
• Your claims history, including non fault claims
• Your no claims discount, if you have one

 You cannot change your age, but you can keep a clean record going forward and think carefully about small claims versus protecting your no claims position.

The van and how you use it

Insurers also look at:

• Van make and model – common work vans are usually easier and cheaper to repair than rare or high performance ones
• Modifications – performance or cosmetic changes can push the price up
• Where you keep the van – for example, driveway, locked yard, or on the street
• Mileage – more miles usually means more exposure to risk
• Areas you drive in – busy city centres may be higher risk than quieter areas

 Understating things like mileage or typical parking to shave a few pounds off a quote can work against you later if an insurer reviews telematics data, service records or loss details after a serious claim.

The cover and extras you choose

The policy itself also matters, including:

• The level of voluntary excess you choose
• Whether you add cover such as:
  • Protected no claims
  • Courtesy van
  • Breakdown
  • Windscreen cover
  • Tools and contents cover 

Extras can be useful, but if you have added things over the years, it can be worth checking you still need all of them on every van. Removing things you never use is a cleaner saving than bending the risk details.

Step 3: Ways to trim the cost without cutting corners

Here are some levers that can help reduce cost. These focus on genuine risk and policy choices, not on hiding information.

The safest savings come from clear cover choices and genuine risk improvements, not from trying to game the questions.

False savings that can put your cover at risk

There are some ways people try to cut costs that look harmless at quote stage but may cause serious issues later. Exact outcomes depend on the facts and wording, but these are well known red flags. 

Undervaluing the van

Putting in a much lower value for the van than a fair market figure might bring the premium down. It can also mean:

• You may receive less if the van is written off
• An insurer may question why the value was set that way in the first place

 A more sensible approach is to give a fair view of what the van might cost to replace on the open market, and ask your broker or provider how they want that value set.

Understating mileage

Quoting for 6,000 miles a year when you know you are closer to 15,000 can lower the price on screen. It can also give an insurer grounds to argue the risk was not set up on the right basis if mileage later becomes relevant to a loss.

 If your mileage jumps around, it is usually better to give a realistic average and explain the pattern than to lowball the number.

Hiding part time jobs or side work

Many tradesmen have more than one income stream, for example:

• A main trade, such as plumbing or joinery
• Side work, such as parcel delivery, food delivery, or moving items for local clients

Leaving that second part out to stay in an “own goods only” lane can look like a saving at first, but if a loss happens while you are on side work, the insurer may focus on that activity.

Being open about all regular uses of the van gives providers a chance to quote properly, or to say if a particular mix is not one they can cover.

Forcing “own goods” when hire and reward looks more accurate

As soon as you are regularly paid to move other people’s goods, even if you see it as “just a bit on the side”, insurers will view that as hire and reward, despite it being infrequent or rare.

Trying to fit that into an “own goods only” class to keep the price low can lead to cover and price not matching the real risk. Transfer notes, delivery notes and how you charge for delivery can all influence how an underwriter sees the work.

If in doubt, describe what you do, how you charge, and how often, and let the broker or comparison tool reflect that in the class of use.

Fronting

Fronting is where a more experienced or lower risk driver is put down as the main user of a van, while a higher risk driver is actually the main user. 

It can look like an easy way to get a cheaper price. It is also one of the most widely quoted examples of behaviour that can cause problems if a claim is investigated and the real usage pattern comes out.

If a younger or higher risk driver uses the van most of the time, it is safer to set the policy up that way and look for savings in more legitimate areas instead.

Very high excess and hidden exclusions

A high voluntary excess can knock the price down, but it is worth asking yourself:

“If I had to pay this full excess next week, could I do it without real trouble.”

 If the honest answer is no, the excess may be too high.

Some policies also limit what is covered in the van, especially tools and materials left overnight. Others may only cover tools if there are signs of forced entry. If your livelihood depends on the kit in the back, it is worth reading this part of the wording or asking the broker to talk you through it.

Ghost brokers and “too good to be true” deals

Ghost brokers are unregulated sellers who claim to offer very cheap insurance, often through social media, messaging apps or small ads. They may:

• Forge documents
• Take out a real policy then cancel it without telling you
• Use false information to get a lower price 

The result is often the same. You think you are insured, but the policy is invalid or cancelled when you need it most.

Buying through regulated providers and trusted comparison sites, and checking you get proper documents in your own name, is one way to reduce this risk. The Ghost Broker Scams article goes into more detail.

Cheap van insurance FAQs

What is the cheapest type of van insurance in the UK?

There is no single cheapest type that suits everyone. Third party cover is often seen as the budget option, but in some cases comprehensive quotes can be close in price or even cheaper. The key is to decide what cover you are comfortable with, then compare quotes at more than one level on the same day.

How can I reduce my van insurance as a tradesman without risking my cover?

Start by checking your level of cover, class of use, mileage and excess are correct. Then look at improving security, choosing a realistic but not inflated mileage, reviewing extras you no longer use, and comparing quotes from several providers using the same honest information.

What happens if I understate my mileage or van value to get a cheaper quote?

Giving mileage or values that do not match reality can lead to disputes if a serious claim happens and the facts are reviewed. In some cases you may get less than you expect for a write off or face questions about whether the risk was set up on a fair basis. It is usually better to give a realistic value and mileage and look for savings in other areas.

Do I need to tell my insurer about part time delivery or side jobs?

If side work is a regular part of how you use the van, it is safer to mention it. Trade work, parcel delivery and hot food delivery are often rated differently. Leaving side work out may give a lower quote at the start, but the missing detail can become important if a claim happens during that part of your week.

What is fronting and why is it a problem for van insurance?

Fronting is where a lower risk driver, often a parent or older relative, is listed as the main user of the van while a higher risk driver uses it most of the time. It can reduce the premium on paper, but if a claim is investigated and the real use comes out, it can cause issues for the policy.

How to compare quotes in practice

When you are ready to compare, treating it like a small project for an hour or so can pay off. A simple approach is:

Set your ground rules

Decide that you will answer questions honestly, even if the first few prices hurt.

Prepare your details

Have licence dates, past claims, penalty information, a realistic mileage estimate and a fair van value to hand.

Use the same, honest details on each site

That includes mileage, overnight parking, any named drivers and any side jobs. This helps you see genuine price differences, not differences driven by incomplete information.

Shortlist a few options

Do not focus only on the very cheapest. Look at level of cover, excess, key extras, and any big limits or exclusions that matter to you.

Ask questions if anything seems unclear

A quick call or chat with a broker can be helpful if you are not sure how your mix of work fits into their options.

How VanCompare.com helps you find cheap cover for the correct risk

 At VanCompare.com, the aim is simple: help you find keen rates for the correct risk. Cheap if possible, but not at the cost of bending the basics.

Through the platform you can:

• Enter your details once, including honest information about how you use the van
• See quotes from insurers and brokers who are used to covering tradesmen and small firms
• Compare prices and key features side by side

If you see a much cheaper quote elsewhere, sometimes that will be a genuine win. Other times it may be because a key detail has not been picked up yet. Things like mileage, side delivery work, who really drives most of the time, or where the van is kept can all shift the price when they come to light. 

We would rather help you get the cheapest rate for the risk you actually present than sell you a policy that only looks cheap because important information is missing. The long term play is to be insured correctly, build a strong record and let the price move down as the risk improves.

Get a quote now.

Next steps

If your van insurance feels too expensive, you do not have to put up with it, and you do not have to gamble with your cover either. 

You can:

• Check your current policy for level of cover, class of use, sums insured, mileage and excess
• Decide what cover you really want to keep and what you could trim
• Improve any easy risk factors, such as security or storage
• Be open about all the ways you use your van, including side work
• Use a comparison tool to see what the market looks like for someone in your position

 Once you have a clearer view, you can get van insurance quotes through VanCompare.com and see if you can bring the cost down while keeping cover that still makes sense on a bad day, not just a renewal day.

VanCompare Editorial Team

The VanCompare Editorial Team produces clear, practical insurance guides for UK tradesmen, couriers and small business owners. We work with FCA regulated insurance brokers and providers to translate complex insurance topics into plain English, helping drivers make informed decisions about their cover.

Where relevant, our content is checked against trusted UK sources such as the FCA, GOV.UK, the ABI and MoneyHelper to help keep it accurate and up to date.