Van insurance premiums rise again after initial coronavirus drop

Date: Monday, November 2, 2020 | Author: Sean Keywood

UK van insurance premiums have risen by 1.6% during the past three months, according to market analyst Consumer Intelligence.

It says the increase follows a 2.4% fall for the previous three-month period, which coincided with the first coronavirus lockdown, meaning premiums overall are down by 0.8% over the past six months – said to be less than some market commentators had expected.

The average UK premium now stands at £1,515.

Consumer Intelligence pricing expert John Blevins said: “Van drivers who generally rely on their vans for business would have been the first back on the road in June following the easing of lockdown restrictions.

“The lingering effects of Covid-19 have no doubt had an influence on market pricing, but the reductions across the board have not driven premiums down that much.

“And given the recent tighter restrictions placed on areas all over the country, times remain uncertain – which may well impact driving habits and, in turn, premiums. As always, though, premiums will be impacted by claim frequencies and severity.”

Consumer Intelligence says that drivers using vans for business have seen premiums jump by 2.3% since June, while drivers using vans as a car substitute under a social, domestic and pleasure policy have seen a 0.2% reduction.

Over the past year, the data also shows that premiums for van drivers under the age of 25 have fallen by 12.8%, although they still pay £3,091 on average.

In contrast, drivers aged 25-49 have seen a 6.7% average premium increase, to 3755, and over-50s have seen a 5.1% increase, to £479.

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