Van insurance premiums head north

Good news: van insurance premiums are down 0.9% year-on-year to £1,299; bad news: they’re up 1.2% in the three months to December.

According to Consumer Intelligence’s van insurance index, average premiums are 36.5% higher than in April 2014 when the data analytics firm began tracking prices. The company is of the view that while premiums fell in the past year, a further increase is likely to be the trend.

Here are the figures in terms of demographics:

• Van drivers aged 50 and above – average premiums up 1.6% in the past year to £609, also up 2.5% in the past three months;
• Those under 25 – down 5.9% in the year to £3,679, up 2.5% in the past three months;
• Drivers aged between 25 and 49 – down 0.3% in the year to £918, up 0.4% in the past three months.

“The price rises in the past three months are signalling a turn in the market after a sustained period of premium reductions,” noted Consumer Intelligence pricing expert John Blevins.

“Insurers have passed on price cuts where they can but claims costs are dictating premium rises with the increased cost of importing spare parts a major factor when repairing vans following accidents.”

Consumer Intelligence said the most popular makes and models are manufactured overseas and that technologically advanced vans cost more to repair – resulting in the higher costs that in turn push premiums to accelerate.

“That is likely to remain the case this year with claims frequency and cost the big drivers for any further rises in premiums,” said Blevins.