Van insurance costs have hit an average of £1,591 with best-buy deals racing ahead by 11.7%, new analysis from insurance
market research experts Consumer Intelligence shows.
The average cost of insuring a van is now double the best-buy premium for motor insurance at £788, the figures show. The rise in costs is not hurting sales of vans, however, which hit an all-time high in 2017 according to the Society of Motor Manufacturers & Traders.
Consumer Intelligence’s quarterly Van Insurance Index shows that under-25s avoided the worst of the increases, with average costs rising 3.6% in the year to October, but they still have to pay £4,770 a year to insure their vehicles. Average premiums for over-50s were up by 10.7% to £405, while those aged 25 to 49 saw prices rise by 14% to £742.
Drivers who want to reduce insurance bills are being urged to opt for “carriage of own goods” cover which is suitable for workers such as builders, plumbers, carpenters and shopkeepers who commute to work. Average best-buy premiums for “carriage of own goods” were £1,364 but increased by 11% in the year to October. In contrast, drivers who choose “social, domestic and pleasure” cover were paying £2,529 and saw premiums rise by 15%.
Drivers who opt for carriage of own goods cover also have a wider choice of quotes, as not all insurers offer social, domestic and pleasure cover for vans. Drivers requiring SDP cover will get an average of 23 quotes from a price comparison website, compared to 27 who opt for carriage of own goods.
“Van drivers are paying double the average car insurance premium of £788, and with more people using their vans for work that adds to the costs of doing business,” Ian Hughes, the Chief Executive of Consumer Intelligence, said. “Researching the market is crucial, and shopping around will help as prices vary month on month and between providers.
“Choosing the appropriate cover is also important and opting for carriage of own goods can keep costs down. However the general trend is up across all segments of the market.”