Van Insurance is Getting Cheaper, Says Consumer Intelligence

Quoted van insurance premiums are going into reverse but are still up 9.5% in the year to the end of September, the latest Consumer Intelligence Van Insurance Price Index shows. Here are some details;

Prices fell 2.2% for drivers aged under 25 in the past 12 months, and by 0.8% in the past three months for the market as a whole. In July, prices dropped 3% after a price cut from one of the most competitive insurers, before creeping up again.

Data shows that in September 2024, the quoted premium for a new van insurance policy most commonly fell between £500 and £749, with 18% of quotes in that range, while 17% fell within the £750 to £999 price range.

Under-25s saw quoted premiums fall by 2.2% in the year to the end of September, while quoted premiums for those aged 25 to 49 increased by 11.5%, and by 10.2% for the over-50s. According to the data it’s the younger van drivers who are seeing a slight fall, whilst older drivers are seeing rises in premiums.

Around 37% of drivers aged under 25 were able to obtain a quote for less than £1,500 in September, an improvement from the 30% able to do so in September last year.  However, around 89% of those aged 25 to 49, and nearly 97% of those aged 50-plus, can secure a quote for less than £1,500 — down from 92% of those aged 25 to 49 able to do so last year. The figure for the over-50s is unchanged in the past year.

PART TIME DELIVERY RISK

Owners using vans for social, domestic, and pleasure purposes saw increases in quoted premiums of 13.1%, while tradespeople experienced rises of 8.4%. Which suggests that insurers are hedging their bets when it comes to van owners who say they have bought a van but aren’t doing any Business category work.

Since Consumer Intelligence started collecting data, quoted premiums for social, domestic, and pleasure have increased by 269.7%, while for carriage of own goods used by tradespeople, premiums have risen by 183.5%.

The overall trend is a steep curve upwards and as more people opt for home delivery of food and other goods bought online, it’s going to be challenging for insurers to keep owner/drivers and small fleets on the road and fully covered.