Surge in van insurance costs
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.”