Van premiums are rising sharply on the cut in the Ogden discount rate and the rise in Insurance Premium Tax, says Consumer Intelligence
Van premiums are rising sharply as new compensation rules and tax rises kick in, analysis from Consumer Intelligence shows.
Van drivers are facing annual increases of 29.5% in insurance bills as new compensation rules and tax rises kick in, analysis from Consumer Intelligence shows.
Average bills are now £1,636 with the rise in premiums accelerating in the past three months as the cut in the Ogden personal injury discount rate and the rise in Insurance Premium Tax kick in.
Average premiums for van drivers are nearly two-and-a-half times higher than for car drivers who pay an average £666, Consumer Intelligence’s quarterly Van Insurance Index shows.
Its analysis found drivers using their vehicles as car substitutes suffer the biggest rises – “social, domestic and pleasure” cover increased 33.5% in the year to June.
Drivers relying on their vans for work are regarded as a better risk – but premiums for “carriage of own goods policies” are still 28.4% higher in the year.
John Blevins, Consumer Intelligence pricing expert said: “The acceleration in insurance costs for van drivers is down to the Ogden changes in March with tax rises and claim costs adding to the pressure.
“Before the Ogden rules came into effect in March prices were rising by around 1% a month and then rocketed by 11.4% in April with the Insurance Premium Tax rise in June adding another 2%.
“Choosing the correct cover is vital and opting for carriage of own goods where appropriate will reduce premiums as will shopping around as prices vary month on month and between providers. But unfortunately it seems the only way is up.”
The data shows older drivers have seen premiums rise by 38% with over-50s while those aged 25 to 49 have seen prices rise by 27.5%.