Surge in van insurance costs - Van Insurance - News - Moneyfacts


Surge in van insurance costs

Surge in van insurance costs

Category: Van Insurance

Updated: 24/08/2016
First Published: 24/08/2016

Van insurance costs are rising at an alarming rate, new figures from Consumer Intelligence show, with the price of a typical policy now costing the best part of £1,000.

The figures, taken from the quarterly Van Insurance Index, show that annual costs have now surged to an average of £967, an increase of 11% in the last year and 2.7% since. Some sectors of the market have to pay even more: perhaps unsurprisingly, the under-25s are the biggest losers when it comes to insurance costs, with typical premiums now standing at £3,297 – an increase of 4.5% in the last three months alone.

However, other age groups haven't escaped price rises either, despite their premiums being far cheaper overall. The figures show that average premiums for the over-50s have risen by 9% in the year to July and 1.1% in the last three months (to an average of £351), while those aged 25 to 49 have seen prices rise by 12.4% in the past year to £568.

But, there is a way for van drivers to cut down on their costs, and that's by opting for carriage of own goods cover. This won't be appropriate for everyone, but for those who commute to work, such as builders, carpenters, plumbers or even shopkeepers, the savings could be marked.

These customers could be escaping the worst of the price rises, with carriage of own goods cover costing an average of £891 per year, an increase of just 2% in the last three months and 9.7% over the past year. This is compared with average premiums of £1,294 for those who opt for social, domestic and pleasure cover, which have risen by 5.8% since April and a whopping 17% year-on-year.

"The van insurance market is seeing double digit price rises in line with the car insurance market as a whole," said Ian Hughes, chief executive of Consumer Intelligence, "with van drivers paying higher premiums than motorists.

"When people are using their vans for work, as more and more people are doing, it adds substantially to the costs of doing business. That means it makes sense for drivers to ensure they source the appropriate insurance for their van, as there are substantial savings for those who only need carriage of own goods cover. Shopping around will also help as prices vary month on month and between providers."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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