Steep rise in van insurance prices reported

Date: Wednesday, February 7, 2024 | Author: Sean Keywood

The average quoted price of van insurance rose by 35.9% during 2023, the biggest annual increase seen for over six years, according to Consumer Intelligence.

The analysis company said premiums were being pushed higher by a rise in the cost of claims, driven by the cost of sourcing replacement parts and carrying out repairs.

However, it did say there were signs of a slowdown in the pace of increases, with the average quoted premium having risen by 4% in the three months to December, compared with 12.9% in the three months to September, and 9.8% in the three months to June.

The only previous higher annual increase was in the 12 months to Q3 2017.

Younger van drivers, aged under 25, saw the lowest increases in quoted premiums during 2023, at 24.5%, compared with 41.6% for the over-50s, and 36.6% for those aged between 25 and 49.

Since Consumer Intelligence began collecting data in April 2014, the average quoted van insurance premium has nearly trebled, rising by 192.4% in that time.

Consumer Intelligence senior insight analyst Laura Vas said: “As we have seen in the motor market, the rising costs of claims in relation to the increased price of sourcing replacement vehicle parts and completing repairs has pushed van insurance premiums higher this year, although the recent quarter's movements suggest that the rate of inflation is now showing signs of slowing.

“Inflation was less extreme for younger drivers, but premiums for the younger end of the market remain considerably higher than the quotes for those more experienced drivers.”

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