Van insurance premiums are rising at over 30 percent, according to recent insurance industry data, as a combination of factors take effect in the market. The key trends are;
- More freelance couriers on the roads as internet shopping continues to replace traditional retailing.
- Changes to injury compensation rules
- Increase in fraud
- Rising Insurance Premium Tax
- The report from Consumer Intelligence shows that van premiums were up by an average of 31 percent in September, compared to prices in September 2016. That means a typical premium of £1214 a year. Interestingly costs for younger drivers seem to have fallen over the last three months.
John Blevins from Consumer Intelligence noted;
`We are still not seeing a return to the 1 percent month-on-month rises that we saw before the Ogden Rate changes in March this year. The costs of claims is increasing as vans haver more new technology on board.’
Van drivers who might expect that opting for Social Domestic and Pleasure use would save cash are finding that those days are gone – in fact they pay £1327 per annum on average. The market trend is that drivers who request Carriage of Goods are seen as a better risk, and more likely to get the best insurance deals, because they are using the vehicle for work and are likely to be more careful in day-to-day use.
INCREASE IN OVERSEAS LICENCE COURIERS
Insurance-Edge.Net spoke to a leading brokerage, based in the North West about the rise in van insurance rates. The person did not want to go on the record but told us;
`There are a rising number of van couriers, working freelance, who have a licence gained in another EU country. They tend to buy smaller, pre-owned city type vans for work use. Many drivers live at are rented properties with several people registered at that address. These are factors the industry doesn’t like to talk about openly, but they do affect risk.
We think it’s inevitable that more driverless tech is going to be applied to the delivery sector in the long term, because that way risk is much more manageable, and vehicles will be tracked 24/7.’