Van insurance premiums to increase by almost a third

Date: Friday, July 28, 2017 |

Van drivers are set to see insurance prices rise by almost 30% year-on-year as new compensation rules and tax increases come into effect.

That’s according to Consumer Intelligence, which claimed prices have risen by 29.5% to an average of £1,636. The company said prices have soared in the last three months after regulators dropped the discount governing payouts in major personal injury claims (known as the Ogden rate) to minus 0.75% from 2.5% in March.

In addition, Insurance Premium Taxes saw a rise in June, which Consumer Intelligence said is “piling on the pain” for those who rely on vans for work.

According to the market research agency, average premiums for vans are nearly two and a half times higher than for car drivers, who on average pay £666.

The data also revealed that over 50s have been hit the hardest by the rule changes, with premiums rising by 38% for elderly drivers, while those aged between 25 and 49 saw their premiums increase by 27.5%.

“The acceleration in insurance costs for van drivers is down to the Ogden changes in March with tax rises and claim costs adding to the pressure,” said John Blevins, Consumer Intelligence pricing expert. “Before the Ogden rules came into effect in March prices were rising by around 1% a month and then rocketed by 11.4% in April with the Insurance Premium Tax rise in June adding another 2%.”

He added: “Choosing the correct cover is vital and opting for carriage of own goods where appropriate will reduce premiums as will shopping around as prices vary month on month and between providers. But unfortunately it seems the only way is up.”

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