Average quoted van insurance premiums shot up 35.9% in 2023, marking the highest annual increase for more than six years.
The rise, revealed in the latest Consumer Intelligence Van Insurance Price Index, was the result of the higher cost of claims – in turn being driven by the cost of sourcing replacement parts and carrying out repairs.
The only previous higher annual increase in quoted premiums came in the third quarter of 2017, but increases in quoted premiums are starting to slow.
Quoted premiums for van insurance rose 4% in the three months to the end of December 2023; significantly lower than the 12.9% rise in the three months to September, and the 9.8% increase in the three months to June.
In December 2023, van drivers most commonly received new business quotes between £500 and £749 and £750 and £999; with 36% of quotes falling within this range.
Quoted premiums are at their highest levels since Consumer Intelligence records began in 2014 – and have nearly trebled in the last decade, rising by 192.4%.
Laura Vas, senior insight analyst at Consumer Intelligence, said: “As we have seen in the motor market, the rising costs of claims in relation to the increased price of sourcing replacement vehicle parts repairs has pushed van insurance premiums higher this year, although the recent quarter’s movements suggest that the rate of inflation is now 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.
The data also reveals vast discrepancies in the rises across different age groups in the past year.
Younger van drivers, under-25, saw the lowest increases in quoted premiums at 24.5% compared with 41.6% for the over-50s, and 36.6% for those aged between 25 and 49.
However, nearly 42% of over-50s van drivers can source a quote for less than £500 compared with 15% of those aged 25 to 49. No under-25s can do so.
Van premium increases also saw slight variations based on how drivers use their vehicles.
Owners using vans for social, domestic and pleasure saw increases in quoted premiums of 37.6% while tradespeople experienced rises of 35.3% in 2023.
