’Premiums for the younger end of the market remain considerably higher,’ says analyst

The average quoted price of van insurance rose at its fastest pace in six years during 2023 amid higher claims costs.

That was according to Consumer Intelligence, which said that premiums increased by 35.9% in the 12 months to December 2023.

The only previous higher annual increase in quoted premiums came in the third quarter of 2017, the firm highlighted.

It also revealed that in 2023, premiums for a new van insurance policy most commonly fell between £500 and £999.

Consumer Intelligence said that van prices were on the rise due to the cost of claims, which is being driven higher by the cost of sourcing replacement parts and carrying out repairs.

“As we have seen in the motor market, the rising costs of claims in relation to the increased price of sourcing replacement vehicle parts and completing repairs has pushed van insurance premiums higher this year,” said Laura Vas, senior insight analyst at Consumer Intelligence.

Pace slows?

While prices are rising, Consumer Intelligence also highlighted that there were signs of a slowdown in the pace of increases.

For example, quoted premiums for van insurance rose 4% in the three months to the end of December 2023, lower than the 12.9% rise in the three months to September and the 9.8% increase in the three months to June.

Meanwhile, van drivers under 25 saw the lowest increases in quoted premiums at 24.5%, although none of these younger drivers could source a quote for less than £500.

“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,” added Vas.