A recent survey by Consumer Intelligence has reported that the average commercial van insurance premium has risen to £1,190 per year, which represents a rise of 13.3 percent in just a single year.
Customer Intelligence began monitoring van insurance premiums four years ago and have found that prices have risen by 35.5% in this short space of time. This could be due to the value of the pound which has fallen in recent years, causing the cost of importing replacement parts to rise. As the cost of repairs soars, especially for expensive on-board technology, these costs are being passed on to drivers and their premiums.
There has also been a notable increase in the number of fraudulent claims and claims from those suffering from whiplash related injuries, which is putting pressure on insurance companies.
The exact price rise for premiums does vary across the variety of van owners, with over 50s experiencing the largest annual increase of 22.9 percent, compared to the under-25s whose policies only rose by 3.9 percent year-on-year. Despite the increase in price, over 50s still pay considerably less than the younger age group, with average premiums of £520 compared to £3,573 per year for under 25s.
The exact use of vans will heavily impact the cost, with those using a van for only social, domestic and pleasure paying an average of £1,064, which is less than the £1,220 that is commanded on vans used for carriage of goods. That said, both groups experienced rises of 16.5 percent and 12.3 percent respectively.
With commercial van insurance rising, there are a number of potential government actions which could reduce premiums. The new Ogden rate could be adjusted to between 0 and 1 percent, instead of the current -0.75 percent, alongside setting limits on whiplash claim amounts under the Civil Liabilities Bill, which would both help van owners.
The average price for commercial van insurance has started to fall in the last six months, which could be explained by a number of insurers already adopting the new Ogden rate. Consumer Intelligence reports that prices are currently 4.7 percent lower than they were six months ago although overall, they have risen for the year. It is expected that the government will push through the Civil Liability Bill in the coming months, which will hopefully save van drivers more on their premiums next year.
If you are looking for an economical van which will help reduce your insurance premiums, we have showrooms in Harlow, Maidstone and Dunstable where you will be able to view our range of contract hire vans and used vans.
Our range of vans is constantly changing, but you are sure to find a vehicle to meet your needs within our models, such as the Nissan NV200. For more information please contact our experienced team today.