Van insurance costs rise in 2016

Van insurance costs rocket 11.7% in a year

Van insurance costs rise in 2016The cost of insuring a van has vastly outstripped inflation, rising by 11.7% in the 12 months to October 2016.

That’s according to Consumer Intelligence, which reveals the average van insurance policy is now priced at £1,591 – double the typical ‘best-buy premium’ for insuring a car.

Unsurprisingly, under-25s pay the most to insure their vans: a whopping £4,770 a year. However, costs for this age-group have risen by a relatively modest 3.6% – still above inflation, but lower than for van drivers overall.

Rising costs haven’t harmed van sales in the UK, though. The Society of Motor Manufacturers and Traders says that 318,664 new vans have left showrooms so far this year – an all-time high. 

Ian Hughes, chief executive of Consumer Intelligence, said: “Van drivers are paying double the average car insurance premium of £788, and with more people using their vans for work that adds to the costs of doing business.”

Consumer Intelligence suggests that drivers opt for ‘carriage of own goods’ cover to save money. This is suitable for ‘workers such as builders, plumbers, carpenters and shopkeepers who commute to work’ and has an average premium of £1,364.

By contrast, drivers who choose ‘social, domestic and pleasure’ insurance are stumping up £2,529, with premiums up by 15% in the past year.

Clarifying the difference between the two types of cover, Mr Hughes said: “Carriage of own goods cover can also include social, domestic and personal use. Drivers opting for social domestic and pleasure use generally have pastimes or hobbies that suit having a van as either their sole vehicle or as a second vehicle.”

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