Van Insurance

Van insurance is generally included with a standard car insurance policy which can cover you for damage, fire, theft and more. The only time you might need more specialist cover is if you use your van exclusively for commercial purposes.

Is it mandatory to have van insurance in Australia?

Yes. Every vehicle on Australian roads must have compulsory third party (CTP) insurance, also known as your "green slip".

If you cause a crash, it will help pay for other people's injuries and sometimes your injuries depending on which state you live in, but that's where it stops. It doesn't cover your van, the other person's car or any other property you damage. That's all on you.

What insurance do you need for a van?

You can protect yourself even more by adding one of 3 optional levels of cover on top of your CTP. Depending on what level of cover you choose, the following forms of cover can essentially protect you from damage you cause and damage that you can't pinpoint on another driver.

• Third party property damage (TPPD). This is the most basic level of optional cover and will get you out of a few additional jams by covering any damage you cause to other people's property including cars, fences, signposts, animals and any other physical property. It won't cover your van but it's a good option if your van isn't worth a whole lot or you can easily afford to replace it.
• Third party, fire and theft (TPFT). This covers everything TPPD insurance does plus gives your van a minimal amount of cover, which in this case is protection against fire damage and theft. It won't cover you against accidents you cause or against any other type of natural disaster besides fire.
• Comprehensive. Comprehensive lets you say "no worries, mate". It covers everything TPFT does as well as almost everything else including accidents you cause, damage from unknown or uninsured drivers and most types of natural disasters.

What does each of these levels cover?

The following table shows which events TPPD, TPFT and comprehensive insurance will cover. The events your policy covers are called insured events.

What additional features can be included in a van insurance policy?

• Personal items. This feature will help out with the cost of repairing or replacing damaged personal items like your backpack, laptop or pram. It's usually only available on comprehensive policies.
• Roadside assistance. This is usually an optional feature you can add to most types of policies. It means you help when your van breaks down or you get a flat tyre on the side of the road. Some comprehensive policies like Youi's will offer it for free, but this is rare.
• Flexible excess. Some insurers let you choose your excess, which is your share of the cost every time you make a claim. Choosing a higher excess can help you save on premiums and vice versa.
• Key and lock replacement. This pays to repair or replace your van's locks and keys if they're damaged in an insured event. It's usually included automatically but only with TPFT and comprehensive policies because those are the only policies that cover your van at all.
• New for old car replacement. If your van is still relatively new and it gets totalled in an insured event, having this feature will get you a brand-new van with similar specs. It basically lets you insure your van at an agreed value (the going rate of a new van at the time of the crash) at the less expensive market value rate (the value of your van at the time of the crash). It's usually only available with a comprehensive policy and the van usually needs to be less than two years old.
• Excess-free windscreen cover. If your windscreen is damaged in an insured event and it's the only part of your van that's damaged, this will let you repair your windscreen without paying anything out of pocket. It's usually only available on comprehensive policies and will usually be an optional add-on.
• Hire car cover. This pays you for the cost of a hire car if your van is undrivable after an insured event. It's usually only available on higher forms of cover like TPFT and comprehensive. Even then, many insurers will limit this to when your van is stolen and will ask you to pay an additional premium if you want to include other insured events.

How much is commercial vehicle insurance in Australia?

Commercial vehicle insurance is designed to help your business cover the costs that arise from an accident or damage to your business vehicles, along with protection against the risk of theft. Commercial vehicle insurance generally covers vans, cars, electric vehicles, utes and light trucks. Learn more about commercial vehicle insurance here here.

What else should I look out for when getting van insurance?

"Understanding the difference between agreed and market value can be the difference between a smooth sailing claim and a total nightmare. Market value can be cheaper, but agreed value allows you more control over the total sum insured, noting that your sum insured should cover whatever you owe on the van’s loan or lease. If you’re using the van for business purposes, consider insuring it for an amount that covers any after-market accessories you’ve added like built-in storage, as well as tools of trade."

Peta Taylor

Publisher of Insurance

Can I lower my van insurance premiums?

There are ways to save on your van insurance and still have a policy that covers what you need. Here are some tips to help you save:

• Keep your van safe. You can often save money by fitting your van with a security system and agreeing to store it in a locked garage. Even taking driver's safety courses can help you shave some money off your premiums.
• Insure your van at market value. Market value is cheaper than agreed value, as the payout figure is decided on the day of the claim (rather than an 'agreed' amount set when taking out the policy. If you have a brand-new van and insure it for market value, make sure your policy offers "new for old replacement" – it gives you about 2 years where your insurer will consider the value of your van to be that of a brand-new one.
• Pay your premiums annually. Some insurers might offer you a discount in return for paying your premiums yearly instead of monthly.
• Keep your eye out for discounts. There are a number of ways you can score discounts, including by paying your premiums annually, holding multiple insurance policies with the same insurer and signing up online.
• Rethink your level of cover. Periodically review your cover to determine whether it's offering value to you and ditch options you don't need. For example, if you don't drive often and rarely leave the city, you might not need roadside assistance. If your van's getting up in age and replacing it wouldn't break the bank, you should consider downgrading to TPPD only.

What excess will I have to pay on my van insurance in Australia?

Most insurance policies come with an excess, which is your share of the damage costs every time you make a claim. There are several different types of excesses:

• Basic excess. Also called standard excess. It's the base level of excess for your policy and will apply to a majority of your claims. You may be able to increase this excess in return for lower premiums.
• Young or inexperienced driver excess. An additional excess that gets tacked on top of your basic excess if a young or inexperienced driver causes the accident leading to a claim. Insurers usually define this as anyone under 25 or someone 25 years or older who has only held a licence for a short amount of time.
• Driver history excess. Some insurers will charge an additional excess if the driver who caused the accident has had their licence suspended or restricted within a certain amount of time prior to crashing the van. This is tacked onto the top of any other excess you're responsible for.
• Non-nominated driver excess. Most policies will make you list out every driver that will be driving the van and a handful of policies that do so will apply an additional excess if an unlisted driver causes the crash. If your policy doesn't have a non-nominated driver excess, there's a chance non-nominated drivers aren't covered by your policy at all.

Frequently asked questions

• What type of insurance do I need for a van?

  This depends on whether you use your van for business or private purpose, as you can get either commercial or private van insurance. Private van insurance covers you for everyday activities, like dropping children to school, going shopping and family outings. If you use your van for work, you may need to purchase a commercial van insurance policy.

• Will van insurance cover my food van, coffee van or courier van?

  Van insurance policies like the ones we're discussing here are meant for personal vehicles and therefore will not cover commercial vans. If you use your van for commercial reasons, you will have to get a type of business insurance specific to commercial vehicles.

• What does van insurance cover?

  Van insurance protects you, your van and its contents from things like motor accidents, burglaries and fires. Van insurance is different from car insurance, particularly if you use your van for business or commercial purposes.

• I've been in an accident, what should I do?

  Here are the steps to take if you're in an accident:

  1. Make sure everyone is safe and take steps to minimise further damage or danger.
  2. Call 000 if needed, wait for the police or ambulance to arrive and follow any instructions they give.
  3. If any other drivers are involved, exchange details including registration and licence information. If there were any witnesses, get their details too. Do not admit fault to anyone.
  4. Take photos of the accident scene if you have the chance.
  5. Contact your insurer as soon as you can to inform it about the accident.

  From that point, your insurer can help you take the next steps if you need to claim.

• Are there any reasons my policy won't cover me?

  All insurance policies come with exclusions or situations where your claim will be void. Here are a few of the most common reasons an insurer will deny your van insurance claim:

  • You were drunk or on drugs when you crashed
  • You failed to maintain your van properly
  • An unlisted driver crashed your van

  • The damage is due to normal wear and tear
  • You were using your van for commercial purposes
  • You were racing your van

Written by

Brad Buzzard

Writer

Brad Buzzard was a content writer at Finder working across insurance including travel, life, health, business, car, pet and home. Brad brought with him a wealth of experience as a journalist, content writer, social media manager and researcher, being in the industry for almost 2 decades by the time he joined. Before working for Finder, Brad’s expertise could be seen across TLC Marketing, Reborn, DDB Group, We Are Social, Nielsen and Wheeling News- Register, varying across Australia and the United States. See full bio