Warning of potential van insurance price rises

Date: Monday, January 28, 2019   |   Author: Sean Keywood

Insurance premiums for van drivers could be set to rise, despite a 0.9% average fall during the last 12 months, according to analysis from Consumer Intelligence.

The firm cites a 1.2% rise in the three months to December, with the rising cost of claims the main reason for price increases.

The average premium currently stands at £1,299.

Consumer Intelligence says the value of claims is increasing as technologically advanced vans cost more to repair, while the cost of importing parts is also going up.

Premiums are already rising for drivers in some age groups, with average premiums for over-50s up by 1.6% in the last year, and 2.5% in the last three months.

Under-25s saw the biggest fall in the past year, of 5.9%, though they are still around six times higher than the over-50s, and also saw a 2.5% rise in the last three months.

The group in the middle, aged 25 to 49, saw premiums fall by 0.3% in the past year, but rise by 0.4% in the last three months.

Drivers using their vans as substitutes for cars and insuring under social, domestic and pleasure policies have seen savings, with average premiums down 2.3% on the year and by 0.1% in the last three months.

However, business users saw a fall in the past year of just 0.6%, and in the past three months a 1.5% rise.

Overall prices are 36.5% higher than when Consumer Intelligence began tracking them in April 2014.

Consumer Intelligence pricing expert John Blevins said: “The price rises in the past three months are signalling a turn in the market after a sustained period of premium reductions.

“Insurers have passed on price cuts where they can but claims costs are dictating premium rises with the increased cost of importing spare parts a major factor when repairing vans following accidents.

“That is likely to remain the case this year with claims frequency and cost the big drivers for any further rises in premiums.”



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