Van insurance premiums have stabilised over the past three months but remain almost 10% lower than a year ago and around 18.5% below their level at the start of 2025, according to Defaqto's latest Quarterly Van Insurance Price Index.
The June 2026 data showed that while recent monthly movements have been negligible, the longer-term picture is one of substantial premium reduction. Prices rose 0.2% in March and a further 0.2% in April before falling 0.4% in May, leaving average competitive prices broadly unchanged across the quarter.
Over the past six months, average quoted prices have fallen 2.4%, according to the report, a clear slowdown in the pace of rate reduction compared with the previous six months.
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Stephen Kennedy, director at Defaqto, said that the results are a significant movement in the market.
"Van insurance premiums may have flattened over the latest quarter, but the bigger story is the extent of the correction that has already taken place," he said. "The market has repriced materially, and insurers now face the challenge of maintaining competitiveness while protecting underwriting discipline."
The scale of the repricing is all the more notable given the structural expansion of the UK van fleet. There are now just over 4.8 million vans on UK roads, a figure driven by the sustained growth of e-commerce and last-mile delivery.
Van traffic has also seen the fastest growth in miles travelled of any motor vehicle over the past 25 years, rising 82% to 58.5 billion vehicle miles in 2024. That scale of usage creates a large and growing premium pool, but also elevated claims exposure.
Fleet electrification adds further complexity. According to the Society of Motor Manufacturers and Traders, electric vans accounted for 9.4% of the market in late 2025, a growing share that is beginning to challenge pricing as insurers grapple with higher repair costs and specialist parts requirements associated with electric powertrains.
The van market has softened considerably faster than private motor over the past year. Defaqto's data shows van pricing down 10% year-on-year, compared with just 2% for private motor over the same period.
That divergence is particularly striking given the profitability pressures building across the broader motor market. EY forecast in December 2025 that the UK motor insurance market would only break even in 2025 before moving into loss in 2026, projecting net combined ratios of 101% and 111% respectively, meaning insurers would pay out £1.11 in claims and expenses for every £1 of premium collected in 2026.
Claims costs have also not kept pace with falling premiums. ABI data for Q1 2026 showed the average accidental damage motor claim rising to £3,699, up 8% on the previous quarter, as higher parts prices and increasing vehicle complexity pushed up repair costs. Repair costs accounted for 64% of total motor claims in Q3 2025, totalling £1.9 billion.
Consumer Intelligence's Van Insurance Price Index for March 2026 showed average van cover had edged up to £1,674, some £38 higher than three months earlier, suggesting the downward pricing cycle may be beginning to turn, though the figure remains 6% below the same period a year earlier.
Defaqto's analysis showed premium reductions are far from uniform. By vehicle usage, year-on-year reductions range from 6% to 10%.
Regionally, Northern Ireland has seen the smallest reduction at 6%, while the East of England, North West, Scotland and Wales have recorded the largest falls at 11%. Driver age remains a significant differentiating factor, with reductions ranging from 8% to 12% year-on-year. Drivers aged under 26 have seen the largest drops, and those aged over 70 the smallest.
"The spread of reductions across driver age, region and vehicle usage shows that insurers are continuing to make targeted pricing decisions rather than moving uniformly," said Samuel Pomplis, market insights consultant at Defaqto. "For brokers and insurers, the key issue now is understanding where prices have stabilised and where competitive pressure remains. The headline average is important, but the underlying segment-level data will be critical for pricing, underwriting and customer strategy over the coming months."
The stabilisation of van premiums in Q2 2026 coincides with mounting industry concern about whether the current pricing cycle is sustainable.
With claims inflation running ahead of premium movements and the broader motor market forecast to move into loss, pressure on underwriting margins is likely to intensify.
