Van insurance news - Motor insurer warns van drivers

A van insurance company has sought to warn recession-hit drivers of commercial vehicles that downgrading their policies from fully comprehensive to third party fire and theft could be a bad economic decision in the long run.

In a direct call to van insurance customers a spokesperson from the insurer said, "There is a common misconception among motorists that by opting for a policy that offers reduced cover it will be significantly cheaper than a comprehensive policy. While reducing cover may offer a minimal saving short-term, it could cost drivers a lot more down the line if they are involved in an accident that is their fault. "We would advise motorists and businesses to speak to their broker, especially if they are considering downgrading their insurance for vans policies, as it is vital they understand the changes to their cover when reducing their indemnity to 'Third Party, Fire and Theft'."

In a recent survey of van insurance policyholders, the company found that 74% have fully comprehensive cover, with 20% having third party fire and theft; worryingly, the left over 5% had only third party cover.