Van Insurance Cheaper than this time Last Year
- Created: 12 December 2019
In encouraging news for the drivers and fleet managers of UK’s commercial vehicles, the price of van insurance has fallen. This comes despite the widespread predictions of motor insurance experts and the cost pressures caused by the latest Ogden rate change.
The van insurance price figures come from Consumer Intelligence, a data analytics specialist, and show that the average price of commercial vehicle premiums fell to £1,781 in September.
However, this good news comes with several important caveats: not only is £1,781 still a prohibitive cost for many van drivers, but it also represents a 34.4% increase on the cost of a premium in 2014, a rise that far outstrips the rate of inflation.
The major factor over the rising price of van insurance in the past years is thought to be the impact of compensation, increased repair costs and a UK political and economic climate adversely affected by uncertainties over the future of Brexit.
Young van driver insurance premiums cheaper
The latest data shows that younger drivers (classified as those who are under 25) benefited from a price drop in van insurance premiums of 9.3% over the past twelve months. However, young drivers will have a hard time digesting this as good news as the average young driver van insurance premium costs £4,673; more than £4,000 pricier than the £581 average annual premium for drivers who are over 50. There is good news for these younger drivers; even better news though is that once they reach 25, the average premium price drops dramatically to £843 a year.
Furthermore, those using the commercial vehicles for ‘social, domestic and pleasure’ now have to pay £1,691, which is 3.1% less than they did this time last year.
The iVan view
Claims costs may be increasing and the Ogden rate change may be adding extra pressure, but somehow van drivers are, on average, paying less for their cover than they did a year ago.
Whether you are looking for young driver van insurance, any driver insurance, fleet van insurance or indeed any kind of commercial vehicle cover, it can only be hoped that van insurance companies continue to defy predictions of price rises over the next twelve months.