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23 - 25 APRIL 2024 • NEC • BIRMINGHAM • UK
23 February 2024
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Commercial vehicle insurance premiums rocket

Van insurance premiums hit record high, driven by increased claims costs and replacement part prices, with significant age-based discrepancies.

News

Firms that use vans are being hit with the highest rise in insurance premiums for more than six years. The rise, revealed in the latest Consumer Intelligence Van Insurance Price Index, is the result of the higher cost of claims – in turn being driven by the cost of replacement parts and carrying out repairs.

Quoted premiums are at their highest level since Consumer Intelligence records began in 2014 – and have nearly trebled in the last decade.

Laura Vas, senior insight analyst at Consumer Intelligence, said:

As we have seen in the car market, the rising costs of claims in relation to the increased price of sourcing replacement vehicle parts has pushed van insurance premiums higher this year, although the recent quarter’s movements suggest that the rate of inflation is now showing signs of slowing.

Inflation was less extreme for younger drivers, but premiums for the younger end of the market remain considerably higher than the quotes for those more experienced drivers.

The data also revealed vast discrepancies in the rises across different age groups in the past year. Younger van drivers, under-25, saw the lowest increases in premiums at 24.5% compared with 41.6% for the over-50s and 36.6% for those aged between 25 and 49.

However, nearly 42% of over-50s van drivers can source a quote for less than £500 compared with 15% of those aged 25 to 49. No under-25s can do so.

Van premium increases also saw slight variations based on how drivers use their vehicles.

End

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