Van Insurance Cost, Rates & Quotes Comparison In Ontario

  • insured van

The van is actually a vehicle with a box shape with a platform. A van is mostly used for delivery of goods or people from point A to point B. Most vans have a power train similar to light trucks. There are many types of business in Ontario that use vans for various purposes. Mainly, restaurant delivery and supply, florists, courier and other delivery companies rely on vans for their business. There are many factors considered such as the size, value, weight, repair costs, emissions etc. to decide if a van needs personal or commercial insurance.

The types of vans that are used for various reasons are as follows:

  • Box Van: These vans are heavy and box shaped with a dual axle to carry heavy loads.
  • Step Van: These are medium sized and are built with a step for easy entry and exit of the driver. You may have seen these used by Canada Post.
  • Cargo Van: These vans are of medium weight and may carry loads of up to 4000 lbs.
  • Courier Van: Usually used by parcel delivery companies. These are small in size.
  • Passenger Van: This type of van can come in medium, small or full size. It is mostly used to transport people. It might be used as a company transport or employees. Or it might be used for airport pickups and drop offs by hotels. They mostly have luggage racks.
  • Refrigerated Van: These vans have inbuilt refrigeration to transport perishable goods. Usually used by restaurants and food suppliers.

Do You Need A Commercial Insurance For A Van

Well, if you have purchased a van and want to use it for small errands that should be fine. In case you want to use the van for specific business purpose then, you may have to get a commercial insurance. It is very important that you let your insurance provider know about the van’s intended use. If you do not inform your insurer and use the van for business purpose, your claim may be denied in case of damage.  Personal auto insurance is apt for those who never use their van for business.

Let us check out some scenarios in which you may need commercial auto insurance.

  • You hire drivers or operate a van to deliver goods or transport people.
  • You may use your van to provide a service such as a floral arrangement, bakery equipment etc. for different occasions such as weddings held in a banquet hall.
  • You may have decided that your van is best for your small business. Such as plumbing, carpet cleaning and electrical jobs etc. You may carry your tools in a van.
  • Maybe you work with a courier company for a living.  You could use a van to delivery parcels and documents to the recipients.
  • You may run a van rental business.
  • You may be driving a van for a care facility.
  • You may use a van to transport passengers back and forth from the airport or cruise terminals.

The commercial van insurance protects business owners, employed drivers, passengers, goods etc. If you choose to keep a personal auto insurance when using your van for business it may not be good enough. For a damage caused by a driver using your van, the claim may be huge for property damage or personal injury. Then you would need commercial van insurance to cover the damages while using your van for business. An accident involving goods, equipment or tools could cause potential damages of huge amounts. If you do not carry proper insurance coverage, the financial losses could be too big for you to recover. You may end up fighting a lawsuit and legal costs can be very steep.

How Can You Save On Van Insurance Premiums In Ontario

It is important that the driver of the van ensures safe driving habits at all times. This is one of the factors considered by the insurance company while calculating the premiums. You may also make a note of the following to get a good deal on your van insurance.

  • Hire good drivers: If you are not the only one who is driving your van then you may choose an expert driver. It is important to choose a driver with clean claims free record. This could cut your insurance cost for the van.
  • Train your drivers: After hiring your drivers it is important to provide them safety training. This will encourage them to use road safety and observe traffic rules. If your drivers have completed a safety training course, then you may let your insurer know that too.
  • Bundle policies: You may combine different policies that you have with the same insurer. You may get a multiproduct discount by bundling home and vehicle insurance policies.
  • Check your coverage: Change your coverage and deductibles for better insurance rates. At the same time, you may also ensure that you have enough coverage to cushion against losses. Lack of proper coverage may be of no use in case you file a claim.

IBC keeps data collected by the insurance industry for overall auto claims in Canada. CLEAR system is accessed by insurance companies to check on the risk rating of a vehicle. This helps the insurance companies to calculate car insurance premiums based on specific ratings.

List Of Top 10 Vans With Cheapest Insurance Rates In Ontario As Per CLEAR

1.     FORD TRANSIT CONNECT

This van is one of the most popular and has seats for up to 7 people in three rows. The cargo storage area is roomy with a capacity of 100 cubic feet. When this van is fully loaded it has a payload capacity of 1620lbs and towing capacity of 2000lbs. The engine comes with 2 options. The 2.5 litre with 169 hp and 1.6 litres with 178 hp turbo. The 6-speed automatic transmission with front wheel drive is standard. This full sized van gives good value for money on utility and economy.

2.    FORD TRANSIT

This is a full-size van and has large space to seat up to 15 people. The engine types include V6 with 275 hp, twin turbo V6 with 310 hp or a turbo diesel with 185 hp. The transmission is 6-speed automatic with rear wheel drive. There 3 variants with different roof heights, body length and wheelbases.

3.    FORD ECONOLINE E350 Super Duty

This is a full-size van with a seating capacity of up to 12 people in regular length version. The extended length variant can seat up to 15 people. The E350 model comes with a V10 engine 6.8-litre capacity and 305 hp. Or it comes with a V8 engine 5.4-litre capacity and 255 hp. The transmission for E350 is automatic with 5-speed.

4.    FORD ECONOLINE E150

This full-size van comes with 16-inch steel wheels and can seat up to 8 on 2 bucket seats in the front and there are 2 three passenger seats at the back. The engine capacity is 4.6 litre V8 with 225 hp or a V8 5.4 litre with 255 hp. The transmission is 4-speed automatic. Safety features are dual front airbags, antilock brakes, electronic stability system etc.

5.    FORD ECONOLINE E250

The engine capacity of E250 is 5.4 litre with 255 hp or 4.6 litres V8 with 225 hp. It comes with 16-inch steel wheels. The E250 transmission is auto with 4-speed standard and has rear wheel drive. Safety features include trailer brake controller, anti- lock disc brakes, tilt steering wheels etc.

6.    GMC SAVANA 1500

The passenger vans of this model can seat up to 12-15. The cargo models may tow up to 10,000 lbs with a maximum payload capacity of 4192 lbs. There are 2 petrol engine variants. The V8 engine is 4.8 litre with 285 hp and V8 6.0 litre with 342 hp. The transmission is 6-speed auto. So the GMC Savana has enough room for either transporting goods or passengers.

7.    CHEVROLET CITY EXPRESS1500

This van is mainly for transporting cargo. It has a payload capacity of 1500 lbs with 123 cubic feet of space for cargo. The engine is a 2.0 litre with 131 hp and auto transmission. This van also boasts of either 5 years or 60,000-mile warranty for the powertrain. Or a 2 years or 24,000 miles maintenance service for free.

8.   MERCEDES BENZ SPRINTER2500 wb144

This van is designed to either transport people or cargo. It has a seating capacity for up to 12 people. The engine variants include 2.1-litre turbo diesel with 161 hp or 3.0 litre V6 with 188 hp. The transmission is 5speed auto with rear or 4WD. Or 7 speed auto with rear wheel drive. There are many advanced safety devices such as lane departure warning, collision prevention etc.

9.    RAM PROMASTER CITY

This van has one of the best volumes  of cargo in its segment. It has the passenger or cargo models available. The engine is a 2.4 litre with 178 hp. The transmission is 9 speed auto with front wheel drive. There are safety features for cargo tie downs and other accessories.

10.  NISSAN NV200

This is a full-size van with a payload capacity of 1500 lbs and with seating for 2. The engine is a 2.0 litre with 131 hp. The transmission is 4 speed with the variable. This van is also available with rear seating, partition and side windows in taxicab livery.


Resources:

http://www.mto.gov.on.ca/english/trucks/commercial-vehicle-faq.shtml#a15

http://www.ibc.ca/on/auto/theft/top-ten-stolen-cars?y=2015#stolen-cars

http://www.ibc.ca/on/auto/buying-auto-insurance/how-auto-insurance-premiums/how-cars-measure-up

http://usnews.rankingsandreviews.com/cars-trucks/rankings/vans/

http://www.caranddriver.com/features/best-vans-and-minivans-2015-editors-choice-for-vans