Commercial vehicle rates rise for first time in two years

Commercial vehicle rates increased for the first time in two years, according to the Biba and Acturis Insurance Price Index.

The index, which tracks three “baskets” of insurance from £5bn of premium each year, showed that SME and mid-market rates were relatively flat in the second quarter of the year.

The SME basket, which tracks price changes in a package and commercial vehicle policies, found a 0.2% increase in commercial vehicle policies - the first rise Q3 2012.

However commercial property and liability insurance rates fell as competition remained intense.  

Acturis Co-CEO said: “The small increase to commercial vehicle policies is likely to be the result of some insurers withdrawing from the market, but this is countered by continued intense competition in the property and liability elements of the index. We will continue to monitor this during the next quarter to see if this trend settles or continues.”

The index also revealed that home and motor premiums fell by 4.9% in Q2 2014 compared to Q2 2013. With inflation of 1.9% factored in, Biba said this meant customers saved nearly 7% on their insurance compared with last year.

Within the basket, motor premiums fell by 5.6% and home premiums by 4.2%.

Biba executive director Graeme Trudgill said: “Overall this is great news for customers and shows that the government and industry initiatives are working to reduce the cost of motor insurance. We look forward to seeing further plans coming from the government such as the young driver Green Paper from the Department for Transport.”

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