Has COVID-19 changed the way you use your van?
Coronavirus lockdown conditions saw many businesses needing to change the way they worked to keep afloat during the pandemic.
Some sectors, such as the restaurant industry and small retail businesses, have had to radically change their business models and this meant that many companies started undertaking deliveries or using a vehicle to transport goods and materials for work.
Making sure you have the right business vehicle insurance
If you are using a van to carry goods, deliver services, or to transport items as part of your work – building materials, food and drink, or anything you may use as part of your business – then you need to buy commercial van insurance.
When you use a van for business purposes, standard personal insurance won't cover you if you have an accident or your vehicle is stolen or broken into – even if you've got commuter cover on your personal insurance.
If you've changed the way you work, making sure you have the correct cover in place is extremely important.
Is your vehicle a van or a car?
Some family cars are classified as light commercial vehicles, so it's important you have received an insurance quote for the right type of vehicle.
Your V5C logbook will help you understand the category of your vehicle for van insurance purposes: Check out the information on line J.
- Category M1 – Car
- Category M2 – Motorhome
- Category N1 or N2 – Van
If you are using a light-commercial vehicle (category M1) or a car for business purposes, you will need to make sure you have the correct level of car insurance for business.
If you are using a van for business, you will need commercial van insurance.
What type of commercial van insurance?
If you previously used your van purely for social reasons and you now want to use it for work, even if it's just to commute in, you'll need to upgrade your private van insurance to commercial van insurance.
There are three types of commercial van insurance and the type you purchase will depend on how you intend to use your van:
- Carriage of own goods – suitable for self-employed tradespeople etc. who transport goods and tools as part of their work or who commute to a place of work in their van.
- Carriage of goods for hire or reward – for when goods are being transported for payment such as couriers and food deliveries.
- Haulage – this covers drivers who travel longer distances for single deliveries.
Who will be driving your van?
Standard commercial van insurance allows one person and any named drivers on the insurance policy to be able to drive the van.
If you need more flexibility or you're unsure which members of your team will need to drive the van in the future, any driver van insurance means you won't need to name individuals when taking out your insurance or make costly amendments to the policy if your needs change.
There may be certain restrictions in place, such as minimum age limits (some insurers won't cover drivers under the age of 25 or 21) and almost all any driver van insurance policies will require that drivers have a clean driving licence.
Changing times for businesses
Coronavirus has definitely dealt a blow to many small businesses, but the ingenious and determined nature of many SMEs and sole-proprietors has meant they have changed the way they work in order to keep trading.
Almost all changes come with provisos and commercial van use is no exception. If you have changed the way you use your van, give iVan a call today to make sure you're getting the best deal on your commercial van insurance and any driver van insurance today.
Working from your van during the coronavirus pandemic
The Government has issued guidance for people who work from their vehicles, including any van drivers, couriers, lorry drivers, mobile drivers and others who use a commercial vehicle on a day-to-day basis.
Business owners will need to manage the risk associated with coronavirus and, for many van drivers, this will mean thinking carefully about how they can minimise the risks both while in their vans and once they reach the site where they'll be carrying out their work.
Keeping the risks down in a van
If you must share your van with another person, keeping to the 2m distancing guidance is probably impossible. However, there are measures you can take if there is no other way for you to work. Thankfully, one of the pieces of guidance is that if you cannot remain 2m apart, side-by-side working is preferable, so, sitting next to someone as you drive should mean the risk is reduced.
Hygiene measures will need to be top of your list of priorities, including hand washing/sanitising, surface cleaning, and clearing rubbish and belongings out of the van. Keeping antibacterial wipes and cleaning products in your van is a positive step and cleaning should be carried out regularly.
If the van is shared between drivers, the above measures are especially important.
If you must work with another person or persons, the guidance is that risks can be reduced by reducing the number of people each person must come into contact with – this might mean using partnering and fixed-team methods (so each person works with as few others as possible).
Safe deliveries and collections
f you are a delivery driver or your work involves the movement of goods and materials the government advises trying to avoid busy times at despatch centres and drop-off/pick-up points and, wherever possible, staying in your vehicle.
The advice to facilities managers has been to enable contactless payments and increase the use of electronic documentation as much as possible, and to reduce the number of people involved in any handover of goods etc.
PPE and face coverings
Anyone already using PPE in their work activity to protect against risks and non-coronavirus-related hazards, should continue to do so.
A face covering can be worn in an enclosed space (such as a van cab) and can be a simple cloth covering that goes over the nose and mouth. Face coverings must be washed after every shift if they are to be re-used.
Main points for van drivers
The government advises that wherever possible you should:
- minimise contact with other people
- clean vehicles inside and out regularly; including keys, door handles, fuel caps, steering wheel and all manual controls
- wash/sanitise hands regularly
- uphold social distancing measures wherever possible
- agree collection and delivery procedures in advance and try to avoid busy times
- utilise contactless transactions whenever possible
The full guidance can be downloaded from the Gov.UK website.
Online van insurance quotes with iVan
Thankfully, getting an iVan any driver van insurance quote can be achieved online without the need for any face-to-face contact, so you can be sure that you stay covered, get a cheap van insurance deal and minimise the risk of contracting COVID-19 all at the same time.
Fleet Managers Adjusting to New Operating Reality
Increasing numbers of fleet van insurance customers are facing up to a new operating reality in which they must travel further afield in order to meet their, servicing, maintenance and repair (SMR) obligations.
This is the picture described by fleet support system software specialist FleetCheck. It says that the challenge is largely attributable to the widespread closure of many franchise operations.
“We’re not picking out any particular manufacturer here because it is affecting a number but this is something that appears to be happening without much discussion about how it will change provision of SMR for fleets,” said FleetCheck’s managing director Peter Golding.
The development is not unexpected. It has long been known that franchises have recently been forced to contend with increased operating costs, smaller margins and reduced business, partly caused by many fleets ‘going electric’.
Unfortunately, this has all come at a cost to fleet van insurance customers. “The further away the franchise repair centre is, it is likely that it will take longer for servicing or repair to happen,” said Golding.
Independent SMR providers could benefit
However, the shifting sands have proved positive for one group: independent garages. According to industry insiders, independents have quickly stepped into the breach by providing the kinds of specialised services previously offered only by franchises. In the past, this might have proved a problem, but according to Golding having a service history through an independent service provider rather than the franchise is much less of an issue now than it once was.
With the market for electric commercial vehicles currently booming, and many manufacturers having either very small networks or no franchise dealers at all, it remains to be seen whether independent partners will continue to prosper or whether mainstream franchises will adapt and again move into the market, potentially dominating supply chains and ultimately raising prices for the customer.
One thing is certain though, geographical availability of SMR provision is likely to remain important to fleet managers and independent van owners alike: if franchise dealerships continue to nationalise their dealerships and consequently their repair centres, the options for van owners are likely to become narrower and more costly in the long-run.
Commercial van owners want to get back to business
Many commercial van insurance customers are urging the government to lift coronavirus restrictions as soon as possible so they can get themselves, and their vans, back to work.
The BBC in Lancashire recently reported on 49-year-old Mohammed Mulla who operates an ice cream van in Blackburn and who has argued that he should be allowed to sell ice cream from his vehicle as long as physical distancing and stringent hygiene measures are in place.
Mr Mulla said that neighbouring Hyndburn council had allowed ice cream vans out to do business during the lockdown, but Darwen Council told van owners at the outset of the restrictions that they should have "ceased trading".
Meanwhile a couple in Flintshire, Wales, decided that while they were in lockdown and unable to trade, they would put their unsold stock to good use and so their ice cream van became a charity hotspot where locals could donate money to the NHS in return for ice cream.
In Alloa Scotland, another food van business found their plans for the early season were crushed, so they changed their business model and started delivering their brand of street food to customers via self-assembly meal kits.
Like many other sectors in the UK, commercial vehicle owners are hoping that the easing of lockdown restrictions will mean they can get their businesses and vehicles back on the road.
Garages remain open
Delivery and commercial vehicles have been seen as one of the key lifelines during the lockdown and, as such, the MOT extension measures and continued garage servicing capabilities have been necessary and welcome.
As part of the government's 50-page guidelines on lockdown easing, published on 11 May, car showrooms are one of the non-essential retail outlets mooted for gradual reopening from 1 June. Physical distancing and hygiene measures will need to be put in place and some businesses will be required to carry out and publish a risk assessment before they will be eligible to reopen, but it will soon be possible to visit a showroom to buy your next van.
Van insurance quotes online
The COVID-19 pandemic has caused much upheaval for businesses, and queries about van insurance have been among the many questions asked.
If you have found that your van insurance quote has gone up, it could be worth your while searching for a cheaper quote online.
Van Drivers Should be Aware of DOC Restrictions
Van insurance customers were recently reminded that they may risk having their policies invalidated if they drive a vehicle which they are not insured to use.
The reminder, which was contained in a feature in a national newspaper, sought to remind van drivers that they need to obtain a special DOC (Driving Other Cars) policy if they are to drive any van that is not covered by a suitable fully comprehensive van insurance policy.
There may be one problem with this approach though; DOC policies are reportedly being phased out as a result of some motorists using them as a strategy to reduce their motor insurance costs.
Unfortunately, it is thought that younger drivers will be the first to feel the effects of the more restrictive approach to DOCs. Furthermore, says the newspaper, DOC policies will only cover third party damage.
As such, if you have managed to obtain a DOC van insurance policy, it is necessary to check the policy’s small print so that you can be sure of your rights.
In the past, any driver who had a fully comprehensive van insurance policy could feel confident of being allowed to drive any other vehicle. However, the present situation means that many comprehensive policyholders will not even be able to drive their partner’s or child’s van.
Adapting to change
Insurers offering DOC cover as standard are a rarity these days. A recent study of motor insurance policies found that only 13 provided DOC cover as standard, and even these came without the level of flexibility that was offered by such policies just a decade ago.
Van drivers need to be careful that they are not unwittingly caught out by the tighter DOC laws; anyone found to be driving without a valid DOC policy could be charged with driving without valid van insurance and may face a penalty of six to eight penalty points as well as a £300 fixed fine.
Furthermore, statistics from the Motor Insurance Bureau (MIB) show that last year the police reported more than 4,000 calls to the MIB, resulting in the seizure of over 1,500 cars.
While DOC cover can enable a van driver to drive another vehicle, if you run a business and require multiple drivers to drive a single van, any driver van insurance can give you the flexibility you need.