‘Driving habits’ are a key contributing factor when it comes to premium pricing, says market research firm
Van insurance premiums have fallen by 2% since March 2020, with the annual policy for a UK van driver now standing at £1,055, according to analysis by market research firm Consumer Intelligence.
The analysis further revealed that drivers using their vans as a car substitute – under a social, domestic and pleasure (SDP) policy – have reported a 5.5% drop in premiums over the last 12 months.
Meanwhile, during the same time period, the cost of van insurance has decreased by 0.9% for drivers using their vans for business.
This means that business users continue to pay slightly more for their premiums (£1,070) than those who use their vehicles as a car substitute (£1,010).
Harriet Devonald, product manager at Consumer Intelligence, said: “Although there is a road map out of lockdown, things remain uncertain for many van drivers.
“But as we’ve seen over the past 12 months, driving habits affect premiums.”
The bigger picture
Average van premiums have increased 34.8% since April 2014, which is when Consumer Intelligence first started collecting this data.
Premiums have dropped by almost a fifth for motorists aged under 25, yet the cost of a typical annual policy remains comparatively high for this age group (£3,085).
In comparison, prices increased slightly for van drivers aged 25 to 49 (1%), while the over 50s witnessed a slight drop to their van premiums of 0.4%.
A policy now typically costs £565 for a van driver over the age of 50, but for those aged 25 to 49 it is £800.
The lack of telematics in the van market continues to keep insurance costs high for the younger demographic, noted Consumer Intelligence.