Van insurance costs

rising

Citroen Dispatch, 2016, load

VAN insurance costs are continuing to race ahead with average annual bill hitting £967, new figuresfrom insurance market research experts Consumer Intelligence show.

Its quarterly Van Insurance Index found under-25s are the biggest losers with average costs increasing by 4.5 per cent in the past three months taking annual premiums to £3,297.

Average costs across the market as a whole have grown by 2.7 per cent since April taking the average increase for the year to 11 per cent. Under-25s have seen annual increases of 7.2 per cent.

However, van drivers who opt for "carriage of own goods" cover - appropriate for workers such as builders, plumbers, carpenters and shopkeepers who commute to work - are escaping the worst of the price rises.

They pay average annual premiums of £891 compared to £1,294 for those who opt for social, domestic and pleasur" cover.

Annual premiums for carriage of own goods cover are increasing slower than the rest of the market - by two per cent in the past three months and 9.7 per cent for the past year while social, domestic and pleasure cover has increased by 5.8 per cent since April and 17 per cent in the past year.

Ian Hughes, chief executive of Consumer Intelligence, said:The van insurance market is seeing double digit price rises in line with the car insurance market as a whole with van drivers paying higher premiums than motorists.

"When people are using their vans for work as more and more people are doing it adds substantially to the costs of doing business.

"That means it makes sense for drivers to ensure they source the appropriate insurance for their van as there are substantial savings for those who only need carriage of own goods cover. Shopping around will also help as prices vary month on month and between providers."

For those who choose carriage of own goods policies their cover will also include social, domestic and personal use.

Those who choose social, domestic and personal use are covered to and from a permanent place of work. A lot of people who choose this cover and have a van will probably have a pastime that suits having a van as either their sole vehicle or as a second vehicle.

Detailed analysis shows average premiums for over-50s are up by nine per cent in the year to July to £351 with prices rising 1.1 per cent in the past three months.

Those aged 25 to 49 have seen prices rise by 12.4 per cent in the past year to an average of £568.

LATEST MOTORING NEWS

IT was boxy, dumpy and undeniably a bit frumpy - but the Skoda Yeti was loved...

Read more View article

THE noughties seemed to be the decade for the comebacks with bands that had...

Read more View article

FOR more than 25 years the red Type R badge has marked out high-performance...

Read more View article

LATEST NEWS

Google+