Insurance costs for van drivers in the UK have shot up in recent months, following a period of stability over the course of the last year. Premiums have risen by 2.2 percent in three months, with the average UK premium now £1,515.
For reference, that rise is faster than the UK rate of inflation. Data from analytics company Consumer Intelligence also shows that premiums are up 37 percent since 2014.
It’s worse still for large section of van drivers. Those aged between 25 and 49 who use their van for business have seen an increase of 46.9 percent since 2014. And those aged over 50 are paying 45 percent more.
Younger drivers who use their van for work have faced a much smaller increase of 1.2 percent.
So, what’s to blame? It’s partly a reset of the Ogden rate, plus patterns in insurance claims. Indeed, we’ve reported on increases in van-related crimes and thefts in recent months.
“Pricing fluctuations are based on claims experience and we’ve observed no other seismic events within the van market,” said John Blevins, pricing manager at Consumer Intelligence.
“The recent increases are hardly surprising following the government’s reset of the Ogden rate in August.”
Young van drivers cut some slack
It’s not all bad news, though. For young van drivers who are using their van for non-work purposes, there have been big savings over the last year. Social, domestic and pleasure (SDP) premiums for 17-24 year-olds have shrunk by an average of 11.6 percent. Still, that doesn’t make the average premium cheap, at £4,112.
The 25-49-year-old and over-50 categories pay £840 and £509 for non-business use respectively. The average SDP policy, in spite of the recent cuts for young drivers, has risen by 41.6 percent since 2014.