If you use a van for work in the UK, whether that’s carrying tools, delivering goods, or running a small business, you’ll need commercial vehicle insurance. But the right policy depends on how you use the van. The most common (and expensive) mistake people make is choosing the wrong class of use, which can lead to claims being rejected.
This guide compares the UK’s leading providers of annual commercial van insurance and temporary van insurance, including Zixty, and explains which type of policy fits different working patterns.
1. Understanding classes of use
Commercial van insurance isn’t one-size-fits-all. Insurers classify business use into three broad categories:
| Class of Use | What It Covers | Typical Roles |
| Own Goods | Carrying your own equipment, tools, stock, or supplies | Builders, plumbers, electricians, mobile service trades |
| Hire & Reward | Carrying goods for payment, often multi-drop | Couriers, delivery drivers, gig-economy delivery (Amazon, etc.) |
| Haulage | Long-distance transport of goods A→B | Logistics and freight operators |
If you deliver for money (not just transporting your own equipment), you need Hire & Reward. Not selecting it correctly is one of the fastest routes to a refused claim.
2. Best annual commercial van insurance providers
Annual cover is typically the right choice if you use your van frequently as part of your work.
| Provider | Best For | Classes of Use Available | Strengths | Things to Consider |
| Admiral | Tradespeople & small businesses | Own Goods, Hire & Reward, Commuting | Clear cover levels, competitive pricing | Ensure you select the correct class at purchase |
| Direct Line | Businesses needing flexible driver changes | Business use & multi-driver options | No mid-term amendment fees; strong claims service | Must go direct — not on price comparison sites |
| AXA | Straightforward business use with tooling | Work, deliveries, optional tool cover | Simple online management; easy to add drivers | Tools & contents cover often added separately |
| RAC | Businesses wanting insurance + breakdown | Own Goods, Courier, Haulage | Trusted brand, strong breakdown options | Check goods-in-transit cover levels if carrying stock |
There are other providers out there too, and if you want to see lots of quotes from different providers all in one place, why not visit Van Compare, the price comparison website for vans.
Annual Cover Makes Sense If:
- The van is integral to daily work
- You carry equipment or materials most days
- You want to build No Claims Discount
- Cost predictability matters
3. Best temporary van insurance providers
But there is now a credible alternative to annual van insurance. In recent years, there has been an increase in providers offering temporary van insurance. This short term cover works well if you use a van occasionally, if you need to borrow or replace a vehicle at short notice, or if you need to insure a crew member to drive a vehicle temporarily.
| Provider | Best For | Durations | Cover Type | Key Strength |
| Zixty | Borrowing a van, short-term trade use, commuting, own-goods business use | 1 hour – 28 days | SDP + Commuting + Business (Own Goods) | Fast setup, optional Breakdown & Excess Protect |
| Dayinsure | One-off van use or short-term hire cover | 1 hour – 30 days | Varies by purpose | Flexible durations, straightforward quoting |
| Tempcover | Pay-as-you-need van access | 1 hour – 28 days | SDP + some business use | Wide driver age acceptance |
| RAC | Borrowing a van or bridging gaps in a fleet | 1 hour – 30 days | SDP + some business use | Works well alongside RAC breakdown |
| GoShorty | Couriers / paid delivery drivers | 1 hour – 28 days | Hire & Reward | Designed for multi-drop gig work |
Temporary Van Cover Is Best When:
- You only occasionally use a van for work
- You’re working seasonal contracts
- You’re trying courier/delivery work before committing
- You need to borrow a van legally, quickly
Temporary insurance is about flexibility, not always price per day. If you use a van frequently, annual cover wins on cost.
4. Which one should you choose?
| Your Situation | Recommended Cover Type | Reason |
| You use the van most working days | Annual policy | More cost-efficient and stable |
| You carry tools or stock | Annual + tools/contents add-on | Protects what’s inside the van |
| You use a van occasionally | Temporary van insurance | Pay only when you need to |
| You deliver goods for payment | Hire & Reward (annual or temp) | Required by law — not optional |
| You share driving duties | Multi-driver commercial policy | Avoid admin and driver change fees |
So, take your pick – choose annual or temporary insurance according to your needs. But do keep in mind that it’s a UK legal requirement that every vehicle kept or used on a public road must be insured at all times, even if it’s not being driven. The only exception is if the vehicle is officially declared SORN and kept off-road.
The information on this article is correct as of November 2025.
