Quoted Van Insurance Premiums Fall 5.0% but Price Cuts Could be Slowing

Quoted van insurance premiums dropped 5.0% in the year to the end of August but price cuts could be slowing, according to the latest Consumer Intelligence Van Insurance Price Index¹.

The three months to the end of August saw quoted premiums drop just 1.3% with leading direct insurer brands maintaining or increasing prices as intermediary insurers reduced rates

Drivers aged between 25 and 49 and those using their vans for work have benefited the most - quoted premiums for 25 to 49-year-olds fell 5.7% and dropped 5.6% for those using their vans for work.

Consumer Intelligence’s data shows that in August the quoted premium for a new van insurance policy most commonly fell between £500 and £749 with 20% of quotes in that price band while 18% were recorded for the £750 to £999 price range.

“Van insurance new business quotes continue to fall building on the trend which started this year,“ says Laura Vas, Senior Insight Analyst at Consumer Intelligence.

“Two direct insurer brands continue to lead in competitive share although they have lost some of their share due to them maintaining or increasing prices over the past three months. Many providers particularly brands from intermediary insurer groups have reduced their rates offering some van drivers more affordable quotes compared to three months ago,” adds Vas.

Age Differences in the Past Year

Quoted premiums have dropped the most for those aged 25 to 49 falling by 5.7% in the year to the end of August. Under-25s saw quoted premiums drop 4.4% during the 12 months while the over-50s experienced 2.6% falls in quoted premiums.

Around 42% of under-25s are now able to source a quote for less than £1,500 compared with 38% last year. However 49% of those aged 25 to 49 were able to source a quote for less than £750 in August while 38% of over-50s were able to source a quote for less than £500.

Long-Term View

Since Consumer Intelligence started tracking quoted van insurance premiums in April 2014 average overall quoted van insurance premiums have increased by 187.3%.

Quoted premiums for the under-25s have increased the least at 81.8% since the launch of the index compared with increases of 209.6% for those aged 25 to 49 and 205.9% for the over-50s.

Type of Cover

Tradespeople saw the biggest falls in quoted premiums with a drop of 5.6% in the year to end of August and by 1.0% in the past three months. Drivers using their vehicles for Social, Domestic, and Pleasure purposes saw quoted premiums drop by 3.0% in the past 12 months and by 1.9% in the past three months. Since Consumer Intelligence began collecting data, quoted premiums for Social, Domestic, and Pleasure purposes have risen by 249.1%. Owners using vans for Carriage of Own Goods have seen premiums increase by 163.6%.