Van insurance premium increases starting to stabilise

Go.Compare van insurance has today released a new Van Insurance Price Index, which shows that the average comprehensive van insurance policy is now £461*.

The new data shows that, since the start of 2023, the median cost of a comprehensive van insurance policy has increased by 25%, rising from £368 in Q1 2023 to £461 in Q2 2024. But despite this overall increase, the latest numbers show that the price has been gradually stabilising during 2024, and is now, on average, £5 lower than it was at the end of 2023.

Van insurance is available at three different levels of cover - comprehensive, third party only, and third party, fire and theft (TPFT). This latest Index from Go.Compare found that the cheapest policy type is currently TPFT, at a median annual cost of £397, with comprehensive and third party only policies both sitting at £461 and £433 respectively.

Although comprehensive van insurance is £64 more expensive than TPFT, it does offer significantly more cover, for example, a TPFT policy will not cover you or your van if you’re involved in an accident.

The Index also revealed that the cost of van insurance will depend on how a policyholder uses their van – for example, a van that’s used for social purposes, or carriage of own goods, will generally cost less to insure than vans that are used for business purposes. The Go.Compare Index revealed that vans used for social use only cost around £409 to insure, while for carriage of own goods the median price was £505.** But vans used for haulage cost £1,271 to insure, and carrying goods for hire or reward is even higher at £1,557.

The reason behind this jump can be attributed to mileage - if you use your van for business, you’re probably driving more than if it was for personal use. And as you’re on the road more often, you’re more likely to get involved in an accident and claim on your insurance.

Across the UK regions, van drivers in London can expect to pay more than average for their insurance, with an average cost of £829, while those situated in Wales may pay significantly less at an average of £372 for their insurance.***

Commenting on the index, insurance spokesman, Tom Banks, said: “As with car insurance, van insurance premiums have been on the up for over a year now but this latest Index is promising and shows that prices could be starting to stabilise. However, the ABI has also reported that the cost of repairs, replacement vehicles, and theft are all still on the rise, so it’s possible that the price of van insurance could increase further in the future for van drivers.

“There is a wide range of factors that make up the cost of an insurance policy and the Index highlights just how important location is – that said, while you may not be able to justify moving to Wales to pay less than your London counterparts, there are some other things you can do to keep the cost of your insurance down.

“This includes:

• Limiting your mileage where possible: This is because, statistically, the more you drive the more likely you are to have an accident. So if you drive 10,000 miles a year, your insurance will probably be more expensive than someone who drives only 6,000 miles. Make sure you estimate your annual mileage as accurately as you can – if you overestimate your mileage you could end up paying more, while underestimating your mileage could invalidate your policy.
• Improving your van’s security: Fitting your van with an alarm, a tracker and an immobiliser can help bring the cost of your insurance down.
• Compare quotes: Don’t settle for the first price you’re given – make sure you price up your cover with a range of insurance companies.”

For more information, and to read Go.Compare’s report on the “Cost of van insurance”, please visit:  https://www.gocompare.com/van-insurance/how-much-does-van-insurance-cost/.