Van insurance premiums up almost 25% in a year

Increases to the average quoted price of van insurance continue to slow down, but it has not stopped premiums rising by 24.7% in the 12 months to June.

The figures from the latest Consumer Intelligence Van Insurance Price Index show prices have only increased 2.7% in the past three months – the lowest increase for the past five quarters, following the previous quarterly increase of 3.3%.

Data shows that in June 2024, the quoted premium for a new van insurance policy most commonly fell between £750 and £999, with 16.4% of quotes falling within that range.

Direct insurers provided 37% of the top five quotes in June this year compared with 28% last year, reflecting higher inflation among intermediaries.

“Van drivers of all ages have seen new business quotes rise over the last year, but inflation was less extreme for younger drivers,” said Laura Vas, senior insight analyst at Consumer Intelligence. “However, premiums for the younger end of the market remain considerably higher.”

“During the last three months, quoted premiums increased 2.7%  ̶  the lowest quarterly increase seen across the last five quarters,” added Vas.

Just 28.5% of under-25s were able to obtain quotes for less than £1,500, compared with 89.3% of those aged between 25 and 49, and 97.5% of the over-50s.

Only 5.7% of under-25s could source quotes for less than £750 in June this year, compared with 35.7% of those aged between 25 and 49 and 64% of the over-50s.

Since Consumer Intelligence started tracking quoted van insurance premiums in April 2014, average overall quoted van insurance premiums have increased by 210.3%.

Quoted premiums for the under-25s have nearly doubled by 96.8% since the launch of the index, compared with increases of 235.9% for those aged 25 to 49, and 223.7% for the over-50s.

Increases in quoted premiums based on how van drivers use their vehicles varied slightly.

Owners using vans for social, domestic and pleasure saw increases in quoted premiums of 26.5%, while tradespeople experienced rises of 24.1%.

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