Good news for all of you van drivers out there, insurers are slamming on the breaks when it comes to their prices!
According to recent intelligence, van drivers are set to reap the rewards with average insurance premiums on the downfall. Despite this though, it was found that drivers are still paying 20.3% more in comparison to a year ago.
Of course, on average, insurance premiums tend to be more expensive for vans in comparison to cars. Vans tend to be much more technologically advanced and insurers claim that payouts are often higher too. This is because the insurance companies may also have to cover the cost of lost business as well. For example, if the van owners are unable to work after an incident.
New analysis by market experts Consumer Intelligence though claims that insurers are slowing down their price rises. Hooray! But, despite this, in comparison to a year ago, premiums are a lot higher at £1,202.
Their quarterly Van Insurance Index found that prices have both slowed within the past six months. And, in the past 3 months, premiums have also dropped by 3.5%. Nearly half of this fall has been within the past month too.
Insurers have been able to reverse these recent rises due to the Government U-turn on the discount or ‘Ogden rate’. And, confirmation of a rate of between 0% and 1% could mean even more cuts! However, the rise in larger claims means premiums are still rising year-on-year. This is partly due to drivers owning more technologically advanced vans, as well as fraud and increased repair costs.
In terms of who is facing the biggest insurance rises though, the over fifties van drivers are facing the brunt of it. On average, their prices have rose by 26.7% to an average of £561. They weren’t the only ones though, premiums for those under the age of twenty five also rose by around 13.5%. They paid the highest premium prices of around £3,561.
When it came to looking at different types of cover though, it was found that there was virtually no price difference between ‘Carriage of Own Goods’ and “Social, Domestic and Pleasure’ cover. Historically, the price difference between the two has been driven by insurers rating customers using their vans for work as a better risk. This is because insurers feel that they are more likely to be careful with their van. However, research has found that there is now almost nothing in the price, with premiums rising 20.2% for “Carriage of Own Good’ and 19.5% for ‘Social, Domestic and Pleasure’ cover.
Consumer Intelligence pricing expert John Blevins described: “The market is returning to normal now the Ogden effect is wearing off and it is possible we could see more cuts once the new rate is decided.”
“But the other market fundamentals remain the same with the weak pound increasing the cost of repairs when parts have to be brought in from overseas, and more advanced technology in vans driving up the cost of claims.”
“The rise in Carriage of Own Goods premiums shows there are rising claim costs from customers using vans for their business, which may suggest some signs of a rise in fraudulent claims.”
For all of you lot out on the road though, insurance prices aren’t the only things that need to be considered. Recent changes to motorway laws could also see you face a hefty fine if you’re not careful. Take a look at how you can avoid this here.
Not only that, but you also might wan to avoid some of these roads. As the most dangerous roads in the UK, these are the roads you’re most likely to have an accident on. Find out what these are here.
So what do you think of this? Could you benefit? Let us know in the comments below.