Increasing claims costs driving van insurance prices up, despite premiums being lower than they were six months ago
Van insurance prices are higher than they were this time last year but have fallen in the past six months.
New analysis from Consumer Intelligence found that van insurance premiums average at around £1,190 at the end of March 2018, 13.3% more than they were at the same time the year before.
But in the past six months, premiums fell 4.7%.
According to the figures, the increased use of onboard technology included in vans means the repair costs and the cost of importing spare parts have bumped up the price of claims.
It also suggests rising claims for whiplash injuries and a growing number of fraudulent claims has added to the pricing pressure.
In the past four years, the average price of van insurance has risen by over 35%.
While over 50s have seen the biggest annual increase (22.9%), the average premium of £520 per year is considerably less than the £3,573 paid by under-25s per year, who are now paying 3.9% more than they were a year ago.
Drivers using their vans for work and choosing Carriage of Own Goods cover saw prices rise 12.3% but pay more at £1,220 compared with those opting for Social, Domestic and Pleasure cover who pay £1,064 but saw prices rise 16.5%.
John Blevins, Consumer Intelligence pricing expert said: “Since our records began, prices are up 35.5% overall with Government action including the Ogden changes and tax rises adding to increased claims and fraud costs.
“Currently it is rising claims costs that are driving premiums and it looks unfortunately as if prices will continue to increase.
“Some insurers have been passing on the savings from the Ogden Rate review and when the new rate is confirmed there may be some more benefits for van drivers. The sooner the Government push through the Civil Liability Bill the better off drivers will be.”