Van insurance costs highest for three years

posted by 3 years ago in News

The cost of insuring a van has hit a three-year high.

Rising claims and fraud costs have added to the pressure from compensation rules and tax according to new analysis by Consumer Intelligence.

Average premiums are now at a three-year high of £1,214 after prices rose 31.7% in the year to September, its quarterly Van Insurance Index found.

Older drivers were found to suffer the largest increases of 37.4% while premiums for under-25s rose by 30.8% in the past 12 months, and even dropped by 2.6% in the past three. However over-50s pay an average £565 compared with £3,546 for under-25s.

Consumer Intelligence are warning that, despite plans to reverse the Ogden rate helping to slow price rises, costs are increasing by around 2 per cent a month overall as there is still uncertainty in the market.

John Blevins, Consumer Intelligence pricing expert said:

“We are still not seeing a return to the steadier 1% month-on-month price rises before the Ogden rate adjustment in March.

“With the value of the pound remaining low, the cost to repair vehicles is rising, particularly where parts have to be brought in from overseas. The cost of claims is also increasing as vans now have more advanced technology onboard.

“Judging from the increase in Carriage of Own Goods premiums, there are some indications of rising claim costs for customers using vans for their business — and to some extent a rise in the number of fraudulent cases.”