Insurance for Modified Vans and Commercial Vehicles

As an FCA-authorised expert broker that has helped arrange over 900,000 policies, WeCovr understands the complexities of UK motor insurance. This guide is designed for tradespeople, fleet managers, and business owners who rely on altered or customised vans and commercial vehicles for their livelihood.

WeCovr's advice for covering altered or customised work vehicles

For countless UK businesses, a standard van is just the starting point. It’s the modifications—the racking for tools, the vinyl wrap for advertising, or the tow bar for a trailer—that transform a vehicle into an indispensable business asset. While these customisations are essential for your work, they also change how insurers view your vehicle.

Failing to declare alterations can have severe consequences, potentially leading to a rejected claim and an invalidated policy. This leaves you personally liable for repair costs, third-party damages, and legal fees. Getting the right cover isn’t just a box-ticking exercise; it's a fundamental part of protecting your business. This comprehensive guide will walk you through everything you need to know to insure your modified commercial vehicle correctly.

What Counts as a 'Modification' for Van Insurance?

In the eyes of a motor insurance provider, a 'modification' is any change made to a vehicle that alters it from its original factory specification. It doesn't matter if you made the change for performance, aesthetics, security, or functionality—if it wasn't on the van when it left the production line, it's a modification and must be declared.

Insurers need to know about these changes because they can affect the vehicle's risk profile in several ways:

• Value: Custom parts can increase the vehicle's value, making it more expensive to repair or replace.
• Theft Risk: Aftermarket alloy wheels, expensive tools stored in custom racking, or a high-end sound system can make your van a bigger target for thieves.
• Performance: Changes like engine remapping or suspension adjustments can alter the van's handling and speed, potentially increasing the likelihood of an accident.

Here’s a breakdown of common modifications insurers need to know about:

Functional & Work-Related Modifications

• Internal Racking & Shelving: Custom-built or off-the-shelf systems for storing tools and equipment.
• Roof Racks & Pipe Tubes: Essential for carrying ladders, pipes, and other large items.
• Tow Bars: For pulling trailers.
• Refrigeration Units: For catering or delivery vans (chiller/freezer conversions).
• Custom Work-Surfaces or Equipment: Such as in a mobile workshop or catering van.
• Beacons & Additional Lighting: Common on recovery or utility vehicles.

Performance Modifications

• Engine Remapping (Chipping): Altering the Engine Control Unit (ECU) to increase power or improve fuel economy.
• Exhaust System Changes: Fitting a non-standard exhaust.
• Suspension Adjustments: Lowering or raising the vehicle's ride height.
• Brake Upgrades: Fitting high-performance brake discs or callipers.

Cosmetic & Aesthetic Modifications

• Alloy Wheels: Any wheels that are not the manufacturer's standard for that model.
• Body Kits & Spoilers: Adding non-standard bumpers, side skirts, or spoilers.
• Vinyl Wraps & Signwriting: Full vehicle wraps or significant signwriting that advertises your business. While often seen as a security benefit (making a van less desirable to clone), it still changes the appearance and must be declared.
• Custom Paint Jobs: Respraying the vehicle in a non-standard colour.
• Tinted Windows: Applying film to windows beyond the legal limit or factory tint.

Security & Accessibility Modifications

• Upgraded Locks (e.g., Deadlocks): Additional security measures.
• Thatcham-Approved Alarms & Immobilisers: Aftermarket security systems.
• GPS Trackers: Devices to help recover the vehicle if stolen.
• Accessibility Aids: Such as hand controls, hoists, or wheelchair ramps.

The Legal Requirement for Motor Insurance in the UK

Before diving deeper into modifications, it’s crucial to understand the legal foundations of motor insurance in the UK. Under the Road Traffic Act 1988, it is a legal offence to use, or permit others to use, a vehicle on a public road or in a public place without at least third-party insurance.

The consequences of driving without valid insurance are severe, including:

• A fixed penalty of £300 and 6 penalty points on your licence.
• If the case goes to court, you could face an unlimited fine and disqualification from driving.
• The police also have the power to seize and, in some cases, destroy the uninsured vehicle.

It is vital to note that failing to declare modifications can invalidate your policy, which is legally the same as having no insurance at all.

Levels of Cover Explained

When you arrange a motor policy, you will choose from three main levels of cover:

1. Third Party Only (TPO): This is the absolute legal minimum. It covers injury to other people (third parties) and damage to their property or vehicle. It does not cover any damage to your own van or any injuries you sustain.
2. Third Party, Fire and Theft (TPFT): This includes everything in a TPO policy, but adds cover for your van if it is stolen or damaged by fire.
3. Comprehensive: This is the highest level of cover. It includes everything in TPFT, but also covers damage to your own vehicle, even in an accident that was your fault. It often includes other benefits like windscreen cover as standard.

Business Use Classes

For a commercial vehicle, you must also have the correct class of use. Using a van insured for "social, domestic, and pleasure" for business purposes will invalidate your cover.

• Carriage of Own Goods: This is the most common class for tradespeople like builders, plumbers, and electricians who carry their own tools and materials.
• Haulage / Carriage for Hire or Reward: This is for couriers or delivery drivers who carry other people's goods for a living.
• Fleet Insurance: For businesses running multiple (typically three or more) vehicles, a fleet policy can cover all vehicles under a single umbrella, simplifying administration and often providing better value. WeCovr specialises in sourcing competitive fleet insurance for businesses of all sizes, including those with modified vehicles.

Why Standard Van Insurance Isn't Enough for Modified Vehicles

A standard van insurance policy is calculated using data for standard, factory-spec vehicles. The insurer knows the exact repair costs, performance figures, and theft risk for that specific make and model.

When you modify your van, you change these variables. This is why a standard policy is often unsuitable and why full disclosure is non-negotiable.

• Increased Repair Costs: Imagine your van is involved in a collision that damages a custom-built racking system worth £4,000. A standard insurer, unaware of the racking, has only budgeted for repairing the van's bodywork. They would likely refuse to pay for the racking, leaving you to foot the bill. A specialist policy would have the racking listed and covered.
• Heightened Theft Risk: The Association of British Insurers (ABI) regularly reports that tool theft from vans is a major issue. A van fitted with expensive racking and visibly carrying valuable equipment is a prime target. Insurers need to price this increased risk accordingly.
• Altered Performance Profile: A van remapped for an extra 40bhp will accelerate faster and may have a higher top speed. This changes its risk profile from the one the insurer originally assessed. In the event of a high-speed accident, an engineer's inspection could reveal the remap, giving the insurer grounds to void the policy.

The ultimate risk of non-disclosure is policy invalidation. If you make a claim and your insurer discovers undeclared modifications, they can legally cancel the policy from its start date. This means:

• They will refuse to pay out for your claim.
• You will be responsible for all costs, including repairs to your van and the third party's vehicle or property.
• The insurer may seek to recover any third-party costs they are legally obliged to pay from you directly.
• You will have a record of having insurance cancelled, making it much harder and more expensive to get cover in the future.

How to Get the Right Insurance for Your Modified Van or Commercial Vehicle

Securing the correct cover isn't difficult, but it requires honesty and attention to detail. Follow these steps to ensure your customised vehicle and your business are properly protected.

1. Document Every Single Modification Before you even start looking for quotes, make a comprehensive list of every change made to your van since it left the factory. For each modification, note:

• What it is (e.g., "Rhino Modular Roof Rack").
• Who fitted it (e.g., "Professional fitter" or "DIY").
• How much it cost.

This list is your most important tool. It ensures you don't forget anything when speaking to an insurer or broker.

2. Use a Specialist Broker like WeCovr While you can go directly to some insurers, using an independent, FCA-authorised broker like WeCovr is often the most effective route. Here's why:

• Access to the Market: Brokers have relationships with a wide range of insurers, including specialist providers who understand and welcome modified vehicles. Standard comparison sites often struggle to place non-standard risks.
• Expertise: A specialist broker knows which insurers have an appetite for certain types of modifications. They can match your specific needs to the right provider, saving you time and hassle.
• Advocacy: WeCovr works for you, not the insurer. We ensure the policy correctly lists and covers all your modifications, providing peace of mind that you're genuinely protected. This service comes at no cost to you.

3. Compare Policies on a 'Like-for-Like' Basis When you receive quotes, don't just look at the headline price. Scrutinise the policy documents to ensure:

• All modifications are explicitly listed on the policy schedule.
• The cover is for an "agreed value" or that the modifications are covered for their replacement cost.
• The policy provides the correct class of business use.
• The excess is at a level you can afford to pay.

4. Understand Your Policy's Key Terms

• Excess: This is the amount you must contribute towards a claim. It's made up of a compulsory excess set by the insurer and a voluntary excess you can add to lower your premium. Ensure the total is affordable.
• No-Claims Bonus (NCB) or No-Claims Discount (NCD): For every year you drive without making a claim, you earn a discount on your premium, often up to 60-70% after 5 or more years. Making a fault claim will typically reduce your NCB. You can often pay a small additional fee to protect your NCB.
• Optional Extras: Consider adding valuable extras like:
  • Tools in Transit Cover: Standard motor policies do not cover your tools. This must be added separately.
  • Courtesy Van: Essential for keeping your business running. Check that the policy provides a van, not just a small car.
  • Legal Expenses Cover: Covers legal costs if you need to pursue a claim for uninsured losses (like loss of earnings) against a third party.
  • Breakdown Cover: Ensure it provides commercial vehicle assistance.

Key Factors That Influence Your Modified Van Insurance Premium

Insurers use a complex set of data points to calculate your premium. For a modified van, the calculation is even more nuanced.

Cost-Saving Tips for Modified Commercial Vehicle Insurance

While insuring a modified van can be more expensive than a standard one, there are many ways to manage the cost without cutting corners on cover.

• Enhance Your Security: This is the single most effective way to reduce your premium. Installing a Thatcham-approved alarm, immobiliser, or GPS tracking system demonstrates to insurers that you are actively mitigating the risk of theft. The cost of the device is often offset by the insurance discount within a year or two.
• Pay Annually: If you can, pay for your policy in one annual lump sum. Paying by monthly direct debit involves a credit agreement and will always cost more over the year.
• Limit Drivers: Restrict the policy to only cover necessary drivers. Adding young or inexperienced drivers will significantly increase the premium.
• Build and Protect Your No-Claims Bonus: Safe driving is rewarded. A long, claim-free history is one of the biggest discounts available. Consider protecting your NCB once you have accumulated several years.
• Get Your Mileage Right: Overestimating your annual mileage means you're paying for cover you don't need. Be realistic, but don't underestimate, as this could cause issues with a claim.
• Combine Policies: If you have other insurance needs, such as public liability or tools cover, ask your broker about package deals. WeCovr can often provide discounts on other types of business or personal insurance when you purchase a motor policy.
• Choose a Higher Voluntary Excess: Agreeing to pay more towards a claim (e.g., a £500 excess instead of £250) will lower your annual premium. Only choose an amount you are confident you could afford to pay on short notice.

Managing a Fleet of Modified Commercial Vehicles

For businesses operating three or more vehicles, a fleet insurance policy is usually the most efficient solution. When your fleet includes modified vehicles, careful management is essential.

• One Policy, One Renewal Date: A fleet policy simplifies administration immensely. All vehicles are covered under a single policy with one renewal date and one point of contact.
• Flexibility: Fleet policies can be arranged on an "any driver" basis (with certain age restrictions) or for named drivers, providing flexibility as your team changes.
• Cost-Effectiveness: Insurers often provide better rates for fleet policies, especially for well-managed fleets with a good claims history.

Key Fleet Management Strategies for Modified Vehicles:

1. Maintain a Central Register: Keep a detailed, up-to-date register of all vehicles and their specific modifications. This is crucial for your broker when sourcing quotes at renewal.
2. Implement Telematics: Using telematics (black box) systems across your fleet provides invaluable data. It can help you monitor driver behaviour, improve fuel efficiency, track vehicle locations, and prove your fleet is being managed responsibly, often leading to significant premium reductions.
3. Establish Clear Policies: Have a written policy for drivers that outlines rules for vehicle use, daily checks, and a clear procedure for reporting any accidents or damage immediately.
4. Regular Driver Training: Investing in safe driving courses can reduce your claims frequency and demonstrate your commitment to risk management to insurers.

As a specialist broker, WeCovr has extensive experience in arranging complex fleet policies that cater for a mix of standard and modified vehicles, ensuring your entire operation is seamlessly covered.

The Claims Process: What to Do After an Accident in a Modified Van

Having an accident is stressful, but being prepared can make the claims process much smoother.

1. Stop and Secure the Scene: Stop your vehicle in a safe place. Turn on your hazard lights. Do not leave the scene.
2. Check for Injuries: Check on yourself, your passengers, and anyone else involved. Call 999 immediately if anyone is injured or if the road is blocked.
3. Do Not Admit Fault: It is your insurer's job to determine liability. Simply state the facts of what happened.
4. Exchange Details: You must legally exchange the following details with the other driver(s):
   • Name and address
   • Vehicle registration number
   • Insurance company details
5. Gather Evidence:
   • Take Photos: Use your phone to take pictures of the scene from multiple angles, the damage to all vehicles involved, and the road conditions. Crucially, take clear photos of your damaged modifications.
   • Note Key Details: Write down the time, date, location, weather conditions, and what happened.
   • Get Witness Details: If there are any independent witnesses, ask for their names and contact numbers.
6. Contact Your Insurer or Broker: Report the incident as soon as it is safe to do so, even if you don't plan to make a claim. Your policy requires you to.
7. The Repair Process: Your insurer will guide you on the next steps. They will likely appoint an approved repairer. If your van has highly specialised modifications (like a refrigeration unit or catering equipment), you may need to use a specialist repairer. This is where having declared the modifications becomes vital, as your insurer will be prepared for this.

A claim will likely impact your No-Claims Bonus and your renewal premium, but this is precisely why you pay for insurance—to protect you from the catastrophic costs of a major incident.

Frequently Asked Questions (FAQs)

1. Do I need to declare purely cosmetic modifications like company signwriting or a vinyl wrap? Yes, absolutely. Any change from the factory specification must be declared. A vinyl wrap can be expensive to replace after an accident, and an insurer needs to know about this potential cost. Signwriting also changes the vehicle's appearance and must be noted on the policy.

2. Will adding security features like a GPS tracker or better locks lower my modified van insurance premium? In most cases, yes. Insurers look favourably on proactive security measures, especially on modified vans which can be a higher theft risk. A Thatcham-approved tracker is particularly effective in reducing premiums, as it significantly increases the chance of recovering a stolen vehicle.

3. What happens if I modify my van part-way through my insurance policy? You must contact your insurer or broker before you make the modification, or immediately after. Do not wait until your renewal. They will need to adjust your policy to include the new modification. There may be a small additional premium to pay, but this ensures you remain continuously and correctly covered.

4. Is it always more expensive to insure a modified van? Not necessarily. While performance-enhancing or high-value cosmetic modifications will likely increase the premium, functional or security-based changes might have a smaller impact. A refrigerated van may cost more to insure than a standard panel van due to the value of the equipment, but using a specialist broker like WeCovr ensures you find the best car insurance provider who rates for your specific circumstances fairly, preventing you from overpaying.

5. Does my policy cover the tools inside my modified van? No. A standard motor insurance policy, even a commercial one, does not cover the contents of your vehicle. You need a separate "Tools in Transit" insurance policy to protect your tools against theft or damage. This can often be bought as an add-on to your van policy or as a standalone policy.

Protecting your modified van or commercial fleet is vital for your business's financial health. The key is full transparency with your insurer and choosing a policy designed for your unique vehicle.

Ready to get the right cover for your modified commercial vehicle?

Contact the expert team at WeCovr today. As an FCA-authorised broker, we compare policies from a panel of leading UK specialist insurers to find you the right cover at a competitive price, ensuring every modification is accounted for.