The only previous higher annual increase in quoted premiums came in the third quarter of 2017, but there are signs of a slowdown in the pace of increases.
Quoted premiums for van insurance rose 4% in the three months to the end of December 2023, which was significantly lower than the 12.9% rise in the three months to September, and the 9.8% increase in the three months to June.
Data shows that in December 2023, the quoted premium for a new van insurance policy most commonly fell between £500 and £999, with 36% of quotes falling within this range.
Quoted van insurance premiums are being pushed higher by the rising cost of claims which is being driven in turn by the cost of sourcing replacement parts and carrying out repairs, Consumer Intelligence says.
“As we have seen in the motor market, the rising costs of claims in relation to the increased price of sourcing replacement vehicle parts and completing repairs has pushed van insurance premiums higher this year, although the recent quarter's movements suggest that the rate of inflation is now showing signs of slowing,” says Laura Vas, Senior Insight Analyst at Consumer Intelligence.
“Inflation was less extreme for younger drivers, but premiums for the younger end of the market remain considerably higher than the quotes for those more experienced drivers,” adds Vas.
Age differences in the past year
Younger van drivers, under 25, saw the lowest increases in quoted premiums at 24.5% compared with 41.6% for the over-50s, and 36.6% for those aged between 25 and 49.
However, nearly 42% of over-50s van drivers can source a quote for less than £500 compared with 15% of those aged 25 to 49. No under-25s can do so.
Long-term view
The average quoted van insurance premium has nearly trebled, rising by 192.4% since April 2014 when Consumer Intelligence first started collecting data. Quoted premiums are at their highest levels since Consumer Intelligence records began.
Type of cover
Increases in quoted van insurance premiums based on how drivers use their vehicles varied slightly.
Owners using vans for social, domestic and pleasure saw increases in quoted premiums of 37.6% while tradespeople experienced rises of 35.3% in 2023.
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