Hiring a vehicle should be simple, right? You pick a date, grab the keys, and off you go. But sometimes people make the mistake of assuming that the process is the same, regardless of the type of vehicle. However, that is not necessarily the case, so it is important to understand the differences. When it comes to van hire insurance vs car hire, there are a few key differences worth knowing — especially if you’re swapping your compact city car for a boxy Luton or a long-wheelbase van.
Whether you’re moving house (exciting) or just collecting flat-pack furniture on a Saturday, van rental comes with different rules, risks and responsibilities. Below, we will break it down for you, so you know exactly what the differences are!
What Insurance Do You Get with a Vehicle Rental?
Most vehicle rentals (whether car or van) come with a couple of standard protections baked into the price:
- Third-party liability insurance – this covers you for injuries or damage caused to others while driving. It’s a legal must-have in the UK and generally included by default.
- Collision Damage Waiver (CDW) – this reduces your financial liability if the vehicle is damaged or stolen, though it doesn’t eliminate it. You’ll still have to pay an excess — and that’s where things start to differ.
Van Hire Insurance vs Car Hire – The Key Differences
Here’s a quick side-by-side comparison of what’s usually included in van vs car rental insurance, and why it matters.
1. Third-party cover
- Car Hire: Usually included by default
- Van Hire: Also included
- Why It Matters: Covers damage or injury to others — required by law for both
2. Collision Damage Waiver (CDW)
- Car Hire: Often included, with excess of £500–£2,000
- Van Hire: Included, but excess can range from £1,000–£2,500
- Why It Matters: Van excesses are usually higher, due to the size and cost of repair
3. Roof, undercarriage, tyres, windscreen
- Car Hire: Often excluded
- Van Hire: Often excluded
- Why It Matters: These parts are more likely to be damaged on a van — especially during moves or deliveries
4. Licence requirements
- Car Hire: Standard licence for most cars
- Van Hire: Standard licence OK for most vans under 3.5 tonnes
- Why It Matters: You might need a Category C licence for larger vans or if towing
5. Driver age rules
- Car Hire: Drivers aged 21–75 usually accepted
- Van Hire: Often stricter — some companies want you to be over 25
- Why It Matters: Age limits can impact your ability to rent or affect the price
6. Business use allowed?
- Car Hire: Not typically
- Van Hire: Often yes, especially for self-employed and sole traders (but excludes use for hire or reward)
- Why It Matters: You may need additional cover if using the van for work
7. VAT reclaimable
- Car Hire: No (private hire)
- Van Hire: Yes (if hired through your business)
- Why It Matters: Van hire is often classed as commercial — businesses may be able to reclaim VAT
Is Van Rental Riskier than Car Rental?
In short: it can be.
There are a lot of reasons why driving a van can be a little trickier. Vans are much bulkier, trickier to park, and not always what drivers are used to. You're more likely to scrape a low bridge, catch a tyre on a kerb, or damage the roof while reversing, especially if you do not typically drive a van. Plus, if you’re carrying tools, stock, or personal items, there’s more at stake in the back than in your average car boot.
Is Van Hire Excess Higher than Car Hire?
Almost always, yes.
Van rental companies expect a bit more wear and tear, so the CDW excess is typically steeper — £1,000 to £2,500 is common. For cars, it’s a lot less, often closer to £500–£2,000. In addition, van hire policies rarely cover things like roof damage, windscreen cracks, or tyre blowouts — all of which can be easy to miss in a long inspection checklist. That’s why an excess policy tailored to vans can save you a lot of hassle and cash. Specialist van hire excess insurance policies often come with a minimum of excess of £150 or more due to the additional risks involved.
Do I Need a Special Licence to Rent a Van?
For most UK van rentals under 3.5 tonnes, your standard Category B licence (i.e. car licence) is totally fine. But if you’re renting a large Luton, towing a trailer, or going above the 3.5-tonne weight limit (for example, in some long wheelbase or box vans), you might need a Category C1 or C licence. Always check the van’s specs and weight class before booking.
It’s also worth keeping in mind:
- Some hire companies won’t rent vans to under-25s
- Others may charge more for young drivers or limit van size for insurance reasons
What about Business Use?
This is where van hire really differs from car hire. Vans are often rented for work purposes: think tradespeople or small businesses shifting stock.
If you’re using the van commercially, make sure:
- Your insurance allows business use
- You have goods-in-transit cover if transporting valuable cargo
- You keep receipts or manifests, in case anything goes wrong
If you are using a van for hire and reward you may need more specialist insurance to provide cover for that specific activity, and should check that your rental agreement allows for this use.
For cars, business use typically needs to be arranged in advance, or it might void the policy.
Why You Shouldn’t Skip Excess Insurance — For Either
Whether you’re hiring a car for a long weekend or a van for a house move, the excess is often the biggest financial risk. Rental companies will usually offer their own excess waivers at the rental desk, but they tend to be very pricey (think £15–£30 per day). Not ideal.
A smarter, cheaper option is to get reliable excess insurance in advance.
Final Thoughts
So — is Van Hire Insurance different from Car Hire Insurance? Absolutely. Bigger vehicles, higher excess, and a few more risks on the road and in the back. But with the right knowledge (and the right cover), you can skip the stress and focus on getting the job done.
One trip, one policy, full peace of mind. All easily accessible from our app.
People Also Ask
Does van rental include different insurance?
Yes. While there are similarities, van hire insurance often includes different terms and exclusions compared to car hire. Both typically come with third-party liability and Collision Damage Waiver (CDW), but van rentals may not automatically include goods-in-transit cover, and they often have stricter age or licence rules. It’s also more common to see higher excess amounts and limited cover for roof or undercarriage damage in van hires.
Are van hire excesses higher than car?
In most cases, yes. Van hire excess fees can range from £1,000 to £2,500, depending on the provider — often higher than the average car rental excess. That’s partly because vans are larger, more expensive to repair, and more prone to knocks (especially during house moves or DIY jobs). Car hire excess tends to start lower, around £500–£2,000, and many policies offer more inclusive damage cover.
Do I need a special licence for a rental van?
Not usually — if the van is under 3.5 tonnes, a standard UK driving licence (Category B) is fine. That includes most common rental vans like Ford Transits or Vauxhall Vivaros. But if you're hiring a larger van or truck, or planning to drive abroad, always double-check the rental company’s licence requirements. Car hire is typically more flexible, with fewer restrictions on licence categories and age limits.
