Quoted van insurance premiums rose 6.9% in the year to the end of November, but there are signs that price increases are slowing.
Prices dropped 0.7% in the past six months for drivers using vans for work and rose just 1.1% in the past 12 months for under-25s, according to the latest Consumer Intelligence Van Insurance Price Index. Quoted premiums for the market as a whole increased by 1.2% in the past three months and by 0.3% in the past six months.
In November 2024, the quoted premium for a new van insurance policy most commonly fell between £500 and £749 or between £750 and £999, with 17% of quotes in each price range.
Laura Vas, senior insight analyst at Consumer Intelligence, said: “Over the past three months, while some competitive providers raised rates, app-based provider Zego launched a telematics product, Zego Sense. These brands consistently ranked among the top five quotes for van drivers, helping to moderate inflation in affordable quotes.
“Quoted premiums for both types of usage rose at similar rates in the first half of the year, but in the last six months, Carriage of Own Goods (used for work) has seen price falls of 0.7%, while quoted premiums for Social, Domestic, and Pleasure usage rose 3.2%,” added Vas.
The data also reveals wide-ranging variations across different age groups in the past year.
Quoted premiums rose the most for those aged 25 to 49, increasing by 8.4% in the year to the end of November. The over-50s experienced increases of 4.7% during the same period, while under-25s saw quoted premiums rise by just 1.1%.
Only 6% of under-25s could source a quote from price comparison websites for less than £750 in November. However, 40% were able to find a quote for less than £1,500, an improvement from 33% in November 2023.
By contrast, 43% of 25- to 49-year-olds obtained a van insurance quote for less than £750, slightly down from 45% in November 2023. Around 39% of over-50s were able to find a quote for less than £500, virtually unchanged from 40% the previous year.
The data also shows the long-term rise in quoted van insurance premiums.
Since Consumer Intelligence began tracking the market in April 2014, average premiums have increased by 206%.
Quoted premiums for under-25s have nearly doubled, rising by 97.5% since the launch of the index. Meanwhile, premiums have increased by 230.9% for those aged 25 to 49 and by 217.1% for the over-50s.
The analysis also investigation the variations in quoted premiums under type of cover.
Van owners using their vehicles for Social, Domestic, and Pleasure purposes saw a rise of 10.2%, while tradespeople experienced rises of 5.8%.
Since Consumer Intelligence began collecting data in 2014, quoted premiums for Social, Domestic, and Pleasure purposes have risen by 271.4%. For tradespeople using vans for Carriage of Own Goods, premiums have increased by 180.8%.
