Another factor to consider when choosing scrap metal van insurance is the level of cover for your policy. Like regular car and van insurance, there are three levels of scrap merchant insurance:

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• Third party only scrap metal insurance

• Scrap merchant insurance for third party, fire and theft

• Fully comprehensive scrap dealer insurance

It is often presumed that third party only (TPO) insurance will be the cheapest. This insurance will only protect you if a third party makes a claim. Consequently, it only covers the cost of damage to the third-party vehicle and will not cover the cost of any damage to your own vehicle. 

As this has the lowest level of cover and is the legal minimum requirement that motorists need, it is often thought to be the cheapest. However, insurance premiums always factor in risk and quite often, TPO insurance policies are bought by those who are considered high-risk drivers. As a result, third party only insurance can sometimes be more expensive than other options.
In some cases, TPO may be the cheapest, but upgrading to comprehensive insurance may not cost much more and may end up being better value for money while still being within budget. 

Third party, fire and theft scrap metal insurance is another option available that covers third party incidents but provides cover for you should the vehicle be stolen or damaged through fire and theft. This insurance will also cover the costs of any damage resulting from a crime.

Finally, fully comprehensive scrap dealer insurance will cover the costs for a broader range of scenarios, such as covering the costs of goods in transit, public liability and driver policies. For businesses, this is the most common insurance option because it helps lower the risk for the business and provides greater peace of mind.