Van Insurance Premiums Dropping – But How Long Will it Last?

Van Insurance Premiums Have Fallen – But Who Has Benefitted Most? And Will Premiums Continue to Drop?

Quoted van insurance premiums have dropped by 5.0% in the year to the end of August, according to the latest Consumer Intelligence Van Insurance Price Index.

This might seem rather incredible as insurance never EVER seems to come down does it?

However, before we can get too carried away, the current signs suggest the pace of price cuts may be starting to slow.

In the past three months, premiums fell just 1.3%. While many intermediary insurers have been reducing rates, some leading direct insurers have held firm or even increased prices.

Who’s benefiting most?

Drivers aged between 25 and 49 have seen the biggest falls, with quoted premiums dropping 5.7% over the past year.

Those using vans for business purposes also fared well, with average quoted premiums down 5.6%.

Of course, younger drivers are still paying more overall, but there has been some progress.

Around 42% of under-25s can now find a policy under £1,500, compared with 38% last year.

For drivers in the 25–49 bracket, nearly half (49%) were able to source a quote under £750 in August.

Meanwhile, 38% of over-50s secured quotes under £500.

Price bands and affordability

In August, the most common quoted price for a new van insurance policy sat between £500 and £749, accounting for 20% of all quotes.

A further 18% fell into the £750–£999 range.

Tradespeople using vans for work purposes have seen some of the steepest annual drops – 5.6% over the year and 1.0% in the past three months.

Those insuring for Social, Domestic, and Pleasure use saw smaller reductions, down 3.0% in the past year and 1.9% in the past three months.

Long-term trends

Despite the recent fall, van insurance costs remain significantly higher than a decade ago.

Average quoted van insurance premiums have jumped by 187.3%. since 2014, when Consumer Intelligence began tracking premiums.

In that time, the insurance premium stats are quite eye-watering.

Breaking it down:

• Under-25s have seen the smallest increase since 2014, up 81.8%.

• Drivers aged 25–49 have seen premiums rise by 209.6%.

• Over-50s have faced a 205.9% increase.

• For Social, Domestic, and Pleasure use, premiums have risen the most, up 249.1%.

• Vans used for Carriage of Own Goods have seen premiums rise by 163.6%.

What does this mean for van drivers and SMEs?

Despite the optimism that insurance premiums have been curtailed, shopping around remains vital, especially for smaller businesses where van running costs make a big difference to the bottom line.

Keeping an eye on market shifts could help SMEs lock in better deals before premiums start climbing again.

We work with specialist commercial van insurance partners to help find the best premiums for your particular circumstances.

If you’re premiums AREN’T coming down – or if your insurances are due and you would like a quote, get in touch and we will be happy to introduce you to one of our partners.