July 30, 2018
Van insurance annual premiums have decreased by 1.7 percent in the past year to an average cost of £1,240, according to new analysis by Consumer Intelligence.
Despite the falling cost of van insurance over the past year, Consumer Intelligence suggest that van drivers who use their vans for work are not experiencing the full benefits of the price drops. Over the same period of time, average prices for ‘carriage of own goods’ policies dropped by 0.9 percent, whilst ‘social, domestic and pleasure’ policies taken out by owners using their vans as second cars of for their hobbies fell at a much faster rate of 5.5 percent.
This overall means that average annual premiums for ‘carriage of own goods’ policies which business users take out are £1,254 compared with £1,183 for customers who take out ‘social, domestic and pleasure’ policies. These price cuts are obviously welcome for van drivers, however average annual van insurance premiums remain 35.2 percent higher than when Consumer Intelligence first began collecting the data in April 2014.
Pricing expert from Consumer Intelligence, John Blevins commented on the findings and outlined some possible reasons behind the results: “Insurers are able to reduce prices as there are no major issues driving premiums currently and it’s simply the cost and frequency of claims that is having an impact. Drivers using vans for work are more likely to make bigger claims as it’s not just damage to bodywork but lost business and damaged equipment they will be claiming for.”
Greater competition across the market and no tax increases in conjunction with the prospect of alterations to the Ogden rate determining compensation for major personal injury claims is helping to force prices down following the car insurance market.
This year has witnessed the largest price drops for younger drivers, with drivers aged between 17 and 24 benefitting from prices which are 12.4 percent lower than a year ago. Van drivers over 50 in contrast only witnessed price drops of 0.4 percent, whilst those aged between 25 and 49 are experiencing slightly high premiums, with their average van insurance premium increasing 0.8 percent.
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