‘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.”

CI data - van insurance 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.