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Van premiums up despite insurance cuts

Van premiums up despite insurance cuts

Category: Insurance
26/04/2018

Following last week's welcome news that car insurance premiums are heading downwards, van drivers will be disappointed to know that they still have to brace for increased costs, as claims made insurance 13.3% more expensive year-on-year in March despite insurers' efforts to cut premiums. This is according to Consumer Intelligence, which found an average van insurance cost of £1,190.

Although this cost is down 4.7% over the last six months, claims for whiplash injuries and fraudulent claims will see prices continue to climb, warned Consumer Intelligence. Overall, van insurance premiums have gone up by 35.5% over the past four years, with the more popular use of on-board technology making vans increasingly more expensive to repair, and the weakened pound making foreign parts pricier, too.

Drivers over the age of 50 are seeing their costs go up especially fast, by 22.9% over the year to March, compared to under-25s' increase of just 3.9%. However, 50-plus drivers still only have to pay £520, while younger drivers now pay £3,573 per year on average.

While previously it was Government action, including Ogden changes and tax rises, that had been inflating prices, "Currently it is rising claims costs that are driving premiums, and it looks unfortunately as if prices will continue to increase," said John Blevins, Consumer Intelligence pricing expert. "Some insurers have been passing on the savings from the Ogden Rate review and when the new rate is confirmed there may be some more benefits for van drivers. The sooner the Government push through the Civil Liability Bill, the better off drivers will be."

What next

With motor insurance being mandatory, we unfortunately can't wait around for Government intervention or better prices before taking out a policy. To minimise the effects of recent rises, it's always a good idea to compare van insurance policies, the same way you would compare car insurance providers when renewing your policy.

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 Any products featured may be withdrawn by their provider or changed at any time.

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