You are here: Home - Insurance - News -

Surge in van insurance costs

Written by:
The cost of van insurance has soared in the last year, with van drivers now paying twice as much for cover as the average car driver.

Van insurance premiums have hit an average of £1,591 with best-buy deals racing ahead by 11.7%, according to analysis from market research firm Consumer Intelligence.

The average cost of insuring a van is now double the best-buy premium for motor insurance at £788, figures show.

Consumer Intelligence’s quarterly Van Insurance Index shows 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.

The rise in insurance costs is not hurting sales of vans which have hit an all-time high with registrations so far this year at 318,664, according to the  Society of Motor Manufacturers & Traders (SMMT).

Types of van insurance

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” are £1,364 but have increased by 10.9% in the year to October. However drivers who choose “social, domestic and pleasure” cover are paying £2,529 and have seen premiums rise 15% in the past year.

Drivers who opt for carriage of own goods cover have a wider choice of quotes, as not all insurers offer social, domestic and pleasure (SDP) 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, according to the research.

Ian Hughes, chief executive of Consumer Intelligence, said: “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.

“Researching the market is crucial and shopping around will help as prices vary month on month and between providers.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week