Latest Van Insurance Price Index Brings Bad News
- Created: 04 September 2019
A newly published report by Consumer Intelligence has revealed that the cost of commercial vehicle cover has risen by 8.3% over the past year.
The revelation is likely to be greeted with a collective groan among van drivers who already have to work hard comparing quotes from specialist providers in order to find cheaper van insurance than that which is generally available from the major high street providers.
Consumer Intelligence, a leading data analytics and market research company, publishes an annual Van Insurance Price Index. This year it found that van insurance costs an average of £1,171. And the firm warns that because the Ogden rate recently increased from -0.75% to -0.25%, consumers can only expect cover to become even more expensive.
“Depending on how insurers have managed their claims reserves in preparation for the change, this will dictate if we see any painful increases in premiums or – indeed – some welcomed price reductions over the coming months,” said John Blevins, a pricing specialist with the firm.
There is some significant disparity in the prices being charged: the drivers of commercial vehicles pay an average of £1,202, while those use their vans for “social, domestic and pleasure” receive cheaper van insurance, paying an average of £1,046.
Furthermore, there is a massive disparity in the price of van insurance depending on the age of the driver concerned, as can be seen below:
- Van drivers aged 50 or over pay an average of £508
- Van drivers aged 25 to 49 pay an average of £823
- Van drivers aged 24 or younger pay an average of £3,958
As can be seen from the figures above the average price is greatly inflated by the cost of cover for younger drivers – a group who have long struggled to find cheaper van insurance.
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