Driving a van or any other vehicle on the road without adequate insurance is criminal and can subject you to fines or jail time. This is why lessors often offer insurance when leasing a van to take that one issue out of your hair. But how do you go about leasing a van with insurance? Find out here.
Lease a Van with Insurance: Step-by-step
Before you are ready to view deals on different van lease options, you should familiarise yourself with the process. The following is a breakdown of everything you need to do before driving away with a leased van with insurance.
- Select your van
The first thing is to select the van you would be leasing. There are different vans, and your selection should be based on your needs.
You should check how much cargo the van can hold and how many people it can carry.
It is also crucial that you factor in the brand, model and build quality. You want one that can survive the amount of wear and tear you would subject the vehicle to during business.
- Select your lease terms
You know what vehicle you will be driving out the lot; the next thing is to determine under what conditions. This usually includes how long you want the van, the mileage cap and the down payment.
The duration of the lease should be long enough that you can get the most out of it for your business but not so long that you cannot quickly trade it for newer models when available.
And the last thing you want to consider when setting lease terms is your initial payment. You should know that the larger your initial payment, the smaller the amount you will need to spread across your lease term.
- Provide your financial information
Lessors will request financial documentation to determine your creditworthiness. This documentation should show your income and expenditure to prove you can pay the required monthly payment without fail.
This credit check would be difficult if your business does not have a minimum of three months’ worth of audited accounts or bank statements.
- Arrange for insurance and delivery
Most lessors offer insurance cover as part of the lease deal. Ensure you select the insurance that is perfect for your van. Once this is finalised, you should choose the time, date, and location where your new van will be delivered.
Types of Van Lease Insurance
You know how to lease a van with insurance, but what insurance policy are you taking out? Find out all the options available to you below.
- Third-party insurance
This is the most basic insurance type. It is also the most affordable but does not cover yourself or the vehicle. It covers damages to other cars, people, animals and property.
- Third party, fire and theft insurance
This covers all you get with third-party insurance and more. Your insurer also covers your van in case of fire damage or theft.
- Full comprehensive insurance
You can already guess that this insurance type would be all-encompassing. It offers all you will get from a third party, fire and theft insurance and much more.
The first thing out of the bag is that it also covers you if your vehicle is damaged, even in accidents that were your fault.
Depending on your insurance company, you might be offered a courtesy vehicle if your lease van is being repaired.
- Specific van insurance
This type of insurance covers your lease for the specialised use of the vehicle. If you are using the van for heavy lifting, you can specifically insure the vehicle for heavy lifting damage.
- Commercial Insurance
If your vehicle is linked directly to your business, it cannot be insured by standard policies. This is because being used for a company increases the likelihood of theft and damages.
As a result, it becomes essential to insure business vehicles another way, hence, commercial insurance. It exists to cover your van from any damage you might incur in the typical day-to-day running of the business.
There are three commercial insurance policies:
- Carriage of own goods
- Carriage of goods for hire or reward
- Fleet insurance
This comes in handy when you need to lease multiple vans for your business. Instead of taking out insurance for each, you can have fleet insurance cover all your vehicles at once. Doing it this way saves time and money.
Leasing a van with insurance has never been easier, with lessors helping the lessees facilitate insurance policies of their choice. There are several insurance policies to choose from; paw over them and pick out the one that’s the best fit for your business.