Which van insurance class of use do I need?

Class of use is the part of a van policy that says what the van can be used for. Insurers price each class differently because the risk varies — a van used for weekend trips is on the road far less than one making deliveries all day.

If you have an accident while using the van for something your policy doesn't cover, the insurer may refuse the claim, though it would still have to deal with claims from third parties as required by law and could seek to recover those costs from you. Choosing the right class at the start avoids that risk.

Insurers use slightly different names, but most van policies fall into these classes:

• Social, domestic and pleasure (SD&P): personal use such as shopping, holidays, moving your own belongings or visiting friends. It doesn't cover commuting or any business use.
• Social, domestic, pleasure and commuting: everything in SD&P, plus driving to and from a single regular place of work.
• Carriage of own goods: business use where you carry your own tools, equipment or goods, such as a plumber, electrician or builder driving between jobs. It usually includes social and commuting use as well.
• Haulage, or hire and reward: carrying goods that belong to other people in return for payment, such as courier, parcel delivery or removals work.

Start with the most demanding thing you'll do with the van, even if you only do it occasionally. If you're a tradesperson who carries your own tools to customers' homes, carriage of own goods is likely to fit. If you're paid to deliver parcels or takeaway food, or to move other people's possessions, you'd normally need haulage or hire and reward cover.

If you only use the van personally — for example, a camper conversion or a van you keep for moving your own things — social, domestic and pleasure may be enough. Telling the insurer about a higher-risk use usually increases the premium, but it means the policy covers what you actually do.

Multi-drop parcel delivery and courier work usually needs a hire and reward or specialist courier policy. Some insurers don't offer this class at all, and others treat multi-drop work differently from single-drop haulage, so describe the work accurately when you get quotes.

If you do delivery work through an app or as a subcontractor, check whether the company you work with expects you to arrange your own hire and reward cover. Don't assume a standard business policy is enough.

Van insurance covers the vehicle and your liability to other road users. It doesn't necessarily cover what's inside, and it isn't the same as cover for your business. Depending on your work, these are sometimes bought separately or as add-ons:

• Tools insurance — many van policies limit or exclude tools, especially if left in the van overnight
• Goods in transit insurance — covers other people's goods while you carry them
• Public liability insurance — covers injury or damage you cause to others while working, not on the road
• Breakdown cover suited to commercial vehicles