The average quoted price of van insurance rose by 33.2% in the year to March but the rate of increase is slowing, the latest Van Insurance Price Index from Consumer Intelligence indicates.
The latest annual increase is lower than the 35.9% recorded last year and in the last three months quoted premiums rose by 3.3%, which is the lowest quarterly increase across the last five quarters.
The data for March 2024 reveals van drivers most commonly received new business quotes of between £750 and £999, with 18% of quotes falling within that range followed by £500 to £749 which saw 17% of quotes.
Insurance price benchmarking expert Consumer Intelligence, which collects from the big four price comparison websites, as well as key direct brands, said the rising cost of claims and repairs fuelled by increased prices for replacement parts continues to drive inflation in quoted premiums.
Laura Vas, senior insight analyst, said: “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. However, the recent two quarters movements suggest that the rate of inflation is showing signs of slowing.
“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.
Increases in quoted van insurance premiums based on how drivers use their vehicles varied slightly.
Owners using vans for social, domestic and pleasure saw increases in quoted premiums of 36% while tradespeople experienced rises of 32.3% in the year to end-March.
The analysis also reveals the age differences in the past year. Younger van drivers, under 25, saw the lowest increases in quoted premiums at 20.8% compared with 36.6% for the over-50s and 34.7% for those aged between 25 and 49.
However just 7% of under-25s can source a quote for less than £1,000 compared with 44% of those aged between 25 and 49 and 65% of those aged 50 and over.
The Consumer Intelligence data also shows the average quoted van insurance premium has more than trebled in the last decade, rising by 202% since April 2014 when the firm first started collecting van data. Quoted premiums for the under-25s have doubled by 100% but increased by 224% for those aged between 25 and 49 and by 217% for the over-50s.
