New regulations giving van drivers GIPP?
New data shows that some van drivers have seen a 10% jump in premiums in 2022
New data from GoCompare Van Insurance has revealed that van insurance premiums have risen by an average of 5.3% in 2022, since new insurance rules were introduced in January this year – with drivers of certain makes of van seeing increases of around 10%.
General Insurance Pricing Practice (GIPP) regulations were introduced in January 2022 by the FCA to stop insurers offering new car, home, van and bike customers a better deal than those who automatically renew. Previously known as the “loyalty penalty”, it was estimated by GoCompare that the practice of offering a new driver a better deal than those who renew, cost motorists £1.2bn a year in higher car insurance premiums. **
But new data from the comparison site shows that all van drivers have seen an increase in their premiums across the board, despite the new rules only applying to domestic policies. The data has also revealed that:
- Customers using their van for social use have seen the largest increase, with premiums increasing for these drivers by an average of 9% year on year. The average premium for van insurance for social use has gone from £1,028 in April 21 to £1,120 in April 2022.
- Van drivers aged below 26 have seen higher increases than some of the other age groups, with the average premium for a driver aged 17-25 now at £2365, up 7.9% from April 21 (£2192).
- But it’s drivers aged over 60 who have seen the biggest increase over the last 12 months, with average premiums in April 22 standing at £660 (up 9% YOY, £606 in April 21).
And when it comes to vehicle types, those with Vauxhall, Renault or Peugeot vans saw the largest increase in premiums, with Peugeot drivers seeing a 10% increase year on year. At the other end of the scale, drivers of Ford and Volkswagen (VW) vans saw increases below the average with a 4.3% jump for Ford drivers and just 3.6% for VW drivers.
Ryan Fulthorpe, motoring expert at GoCompare said: “While GIPP was applied to domestic insurance policies, it’s evident that all van drivers – business, social and domestic drivers - have been impacted since January.
“While we know that some of these price increases will have been caused by external variables such as labour shortages, the cost of parts increasing and inflation, these increases represent a significant jump for van drivers.
"And these increases show why it’s so important to shop around and compare prices and cover levels before you buy a policy. Insurers use many different factors to calculate their prices, which can include vehicle make, model and age, customer age, driving experience, changes to repair costs they identify through claims, addresses and postcode, to name but a few. But just because insurers offer competitive prices one year, it doesn't guarantee that the insurer will offer a similar price at renewal. There are still many other insurance companies who will all provide different and potentially more competitive quotes, so while your current insurance company could offer you one price, it’s still important to shop around and see the other prices that are out there.”
More information about the new rules and how you can save on your van insurance can be found at: https://www.gocompare.com/van-insurance/
Notes to editors
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Notes to editors
*Based on quote data between April 21-April 22.
GoCompare is a comparison website that enables people to compare the costs and features of a wide variety of insurance policies, financial products and energy tariffs.
It does not charge people to use its services and does not accept advertising or sponsored listings, so all product comparisons are unbiased. GoCompare makes its money through fees paid by the providers of products that appear on its various comparison services when a customer buys through the site.
When it launched in 2006, it was the first comparison site to focus on displaying policy details rather than just listing prices, with the aim of helping people to make better-informed decisions when buying their insurance. It is this approach to comparing products that secured the company an invitation to join the British Insurance Brokers’ Association (BIBA) in 2008, and it is still the only comparison site to be a member of this organisation.
GoCompare has remained dedicated to helping people choose the most appropriate products rather than just the cheapest and works with Defaqto, the independent financial researcher, to integrate additional policy information into a number of its insurance comparison services. This allows people to compare up to an extra 30 features of cover.
GoCompare is part of Future Plc and is authorised and regulated by the Financial Conduct Authority (FCA).