Apparently, van drivers will be facing annual insurance price hikes of 29.5%. As if insurance wasn’t expensive enough already!
According to analysis from Consumer Intelligence, this is after new tax increases and compensation rules have sent premiums soaring. This, in turn, is simply ‘piling on the pain’ for self-employed tradespeople who rely on their vans for work.
Consumer Intelligence’s quarterly Van Insurance Index has shown that the average premiums for van drivers are nearly two-and-a-half times higher than that for car drivers. They, instead, pay an average of £666 with van drivers facing average bills of £1,636!
The average premiums for vans are more expensive though due to the cost of claim payouts being higher. This is because insurance may have to cover lost business as a result of owners not being able to work and vans are generally more technologically advanced.
Alongside this, it was also found that drivers using their vehicles as car substitutes will suffer the biggest insurance rises. ‘Social, domestic and pleasure’ insurance cover increased by 33.5%!
Those using their vans for nothing but work though could fare better with insurers claiming that percentages are lower as workers are more likely to be careful with their vehicle as it is vital for work.
And with more and more vans being broken into and tools stolen, insurance is key for tradespeople in order to get their vans fixed and tools replaced quickly so they can get back to work. This is important as, without a van or tools, tradesmen simply cannot work. One plumber even lost so much that he had to call off his own wedding! Take a look at the full report here.
John Blevins, Consumer Intelligence pricing expert said: “The acceleration in insurance costs for van drivers is down to the Ogden changes in March with tax rises and claim costs adding to the pressure.”
“Before the Ogden rules came into effect in March, prices were rising by around 1% a month and then rocketed by 11.4% in April with the Insurance Premium Tax rise in June adding another 2%.”
“Choosing the correct cover is vital and opting for carriage of own goods where appropriate will reduce premiums as will shopping around as prices vary month on month and between providers.”
“But unfortunately, it seems the only way is up.”
So what do you think of this? Could this impact you? Let us know in the comments below.