We can reveal today that our research suggests average best-buy prices for van insurance have soared by 9.7% in the past year, with average annual costs hitting £954 and drivers aged under-25 now paying up to £3,025 a year [1].
The rises will have a more wide-ranging impact than might be assumed, with new van sales hitting an all-time high last year of 371,830[2]. This increase in demand is partly driven by the corresponding growth of delivery services, and it’s the classic “white van man” who’ll be seeing insurance prices rise the most.
Other groups notably affected by the rises in price are those aged 25 to 49, who have seen a rise by 11.9% in the average price of van insurance to £603. Following these are the over-50s, whose average premiums are up by 9.9% to £357. However, van drivers who opt for so-called “carriage of own goods” cover: which is appropriate for workers such as builders, plumbers, carpenters and shopkeepers who commute to work, can cut costs to around £859 a year.
Overall, van market premiums have accelerated in the past six months, with prices rising by approximately 6.1%. Price rises for “carriage of own goods” have averaged 8.8% in the past year. In stark comparison, the everyman “social, domestic and personal” usage has increased by an average of 11.2%.
Ian Hughes, CEO of Consumer Intelligence, said: “The van insurance market is experiencing the same pricing pressure as the car insurance market with the Insurance Premium Tax a major factor.
"Drivers who use their vans for work are escaping the worst of the rises but are still paying higher premiums on average than motorists.
“It makes sense for drivers to ensure they source the appropriate insurance for their van as those who only need carriage of own goods cover can make substantial savings. It also makes sense to shop around as prices will vary month on month and between providers.”
Yet despite all of this, price rises for van insurance remain lower than those for car insurance, which is increasing at a rate of around 13% a year according to our analysis[3].
If these results are of interest, you may also like to view the research the we recently performed highlighting the sky-rocketing rise in Irish car insurance prices.
[1] The cheapest premiums were calculated by comparing the prices offered for 600 people by all the major Price Comparison Sites and key direct insurers. The top 5 prices for each person were compared to the previous month’s top 5, then these variations averaged to produce the index.
[2] http://www.smmt.co.uk/2016/01/record-van-demand-drives-uk-cv-market-to-all-time-high/
[3] The cheapest premiums were calculated by comparing the prices offered for 3,600 people by all the major Price Comparison Sites and key direct insurers. The top 5 prices for each person were compared to the previous month’s top 5, then these variations averaged to produce the index
Submit a comment