Average Van Premium Now Over £1100

Van owners across the UK are facing ever-increasing insurance costs, with the average annual van insurance policy rising by an eye-watering 18.9% over the last 12 months, according to the latest Consumer Intelligence data. Ongoing claims inflation, as well as rules introduced back in January by the Financial Conduct Authority to put an end to the practice of price walking, have all contributed to rising insurance costs for motorists in the last 12 months.

The rising use of delivery services during the pandemic has not declined as the so-called new normal replaces pre 2020 ways of life. People are commuting far less, getting more stuff delivered at home, plus inflation has prompted a demand for part-time job income. Ways to meet that monthly bill hike is weekend food or other package delivery, dog walking services, rubbish removal, garden services etc. Small vans are often the most cost effective way to replacing a second car in the household with something that earns money, rather than just burns money.

“The recent decline in the value of the pound has served to exacerbate the rate of claims inflation, so we may well see policies rise further until we reach a point of stabilisation,” says Harriet Devonald, product manager at Consumer Intelligence.

The average cost of van insurance in the UK now stands at £1,127.

Long-term view

Average premiums have now increased 56.8% since April 2014 when Consumer Intelligence first started collecting data.

Prices are at their highest point since our records began.

Types of cover

Drivers using their vans as a car substitute (£1,159) – under ‘social, domestic and pleasure’ (SDP) policies – continue to pay slightly more for their premiums than those who use their vans for business (£1,117).

Prices for both SDP drivers and business users have risen at broadly similar rates over the last 12 months, at 18.4% and 19.0% respectively.

Age differences

Our older age demographics have witnessed the biggest increases to their van insurance policies in the last 12 months.

The over-50s have seen insurance costs soar by more than a fifth (20.2%), with van drivers aged 25-49 (19.2%) recording similar rises. Younger van drivers under the age of 25 saw their policies increase 15.2% over the same period.

A typical annual policy for a van driver under the age of 25 remains prohibitively high at £3,060. For those aged 25-49 premiums are now, on average, £887. While for the over-50s, an annual policy costs just £627.

About alastair walker 11354 Articles
20 years experience as a journalist and magazine editor. I'm your contact for press releases, events, news and commercial opportunities at Insurance-Edge.Net

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