Van Insurance Prices Outstripping Inflation
- Created: 28 February 2020
Figures from data analyst Consumer Intelligence revealed that the cost of van insurance premiums has risen by an astonishing 37.4% since April 2014, the date on which Consumer Intelligence began recording data.
In fact, the last quarter alone has witnessed a 2.2% rise in the cost of van insurance, meaning commercial vehicle premiums price rises are now outpacing the rate of inflation.
The firm attributes the most recent rise to the new discount rate, which was set by the government last August. Curiously, however, the Ogden rate was reduced; something that is normally associated with a dip in the cost of van insurance. But insurance industry insiders say that the rate was not reduced as far as insurers had been predicting. As a result, it is claimed, insurers are now passing on unexpected costs to the consumer.
“Excluding Ogden, pricing fluctuations are based on claims experience and we’ve observed no other seismic events within the van market,” said a spokesperson with Consumer Intelligence.
The figures include some surprises. For example, younger van drivers (those aged between 17-24) are only paying 1.2% more for their van insurance policies than they were in 2014 (they have actually become 11.6% cheaper in the last year), while, in contrast, those who are between 25 and 49 are paying 46.9% more, with the over-50s facing a similar situation (they are paying 45% more).
Furthermore, van drivers who use their vehicles for non-commercial purposes are actually paying less than they were in the last quarter – with premiums prices going down by 1%. However, they are ‘social, domestic and pleasure’ (SDP) policies for vans are up by 41.6% on what they cost in April 2014.
One thing remains true: whoever you are and whatever your age, if you want to find cheaper van insurance, whether you're a sole trader looking for a single driver policy or a small business owner needing any driver van insurance and fleet insurance, it pays to shop around by comparing quotes. Get a quote with iVan today.