The latest consumer data displays that van insurance costs have risen by around 16% in the last 12 months, though quotes are getting slightly cheaper as 2023 progresses.
According to insurance researchers Consumer Intelligence, the average van insurance quote now stands at £1,129 – a price rise caused by the impact of inflation on parts, labour and replacement vehicles, as well as the fact that there is now more traffic on the road after the pandemic lull.
The research company also concludes that insurance prices are on the rise thanks to new regulations introduced by the Financial Conduct Authority (FCA). Insurers are no longer allowed to quote higher prices to new customers, and this has reportedly had the knock-on effect of raising costs for everyone.
Some van drivers may feel the price hike pinch more than others – drivers over 50 are now quoted £691 on average, while drivers under 25 have to fork out £3,153 on average for a year of coverage.
“With the cost of living crisis and claims costs increasing, insurers are raising premiums to cover costs, with overall market premiums up 31% year-on-year,” says Harriet Devonald, product manager at Consumer Intelligence.
However, the good news is that insurance prices are on their way back down, after peaking in September last year. Since that peak, the average van insurance quote is around 3% cheaper, and as supply issues continue to ease, the price could decline further in the coming months.
