Van insurance premiums have started to fall after rising 1.6% in the year to February, according to the latest Consumer Intelligence Van Insurance Price Index. A 0.8% drop in quoted premiums over the past three months suggests increased competition is driving rates down.
Drivers using vans for work saw premiums fall by 0.7% in the past six months, while under-25s recorded a 0.9% decline over the past year.
In February, 19% of new van insurance quotes ranged between £500 and £749, highlighting a shift in pricing dynamics.
“Over the past three months, many competitive providers reduced rates, particularly brands from the Markerstudy and Aviva groups, leading to them gaining share and keeping premiums competitive at the top of the price comparison website results pages,” said Laura Vas, senior insight analyst at Consumer Intelligence.
Vas also noted that Zego and its telematics brand, Zego Sense, have expanded their footprint on price comparison websites, while Admiral Group increased premiums, offsetting some reductions made by competitors.
Older van drivers saw the highest increase in quoted premiums, with over-50s facing a 3.6% rise over the past year. Those aged 25 to 49 saw premiums increase by 1.6%, while under-25s experienced a 0.9% drop.
The cost burden remains heavier for younger drivers. Just 12% of under-25s secured quotes under £750 in February, compared to 70% of over-50s and 48% of those aged 25 to 49. However, the proportion of under-25s receiving quotes below £1,500 improved to 44%, up from 37% a year ago.
According to CompareNI’s data in February, Northern Ireland has the lowest average van insurance premiums for drivers aged 17 to 24 years in the UK, while the North East is the most expensive region for young drivers.
Since Consumer Intelligence began tracking van insurance premiums in 2014, prices have surged 203.7%. Quoted premiums for under-25s have doubled, rising by 101.2%, while those for drivers aged 25 to 49 and over-50s have climbed 225.3% and 221.7%, respectively.
The impact of rising premiums varies by usage. Van owners using their vehicles for Social, Domestic, and Pleasure (SDP) saw a 5.5% increase in quoted premiums over the past year. In contrast, tradespeople using vans for Carriage of Own Goods recorded only a 0.4% rise.
Over the last six months, premiums for Carriage of Own Goods policies fell by 0.7%, while those for SDP users increased by 4%.
Long-term data shows a stark rise in costs, with SDP premiums surging 274.3% since 2014 and Carriage of Own Goods policies increasing 177.4%.
The latest figures suggest that while competition is putting downward pressure on prices, long-term trends indicate van insurance remains significantly more expensive than a decade ago.
