Van insurance premiums rise – but rate of increase is slowing

The average quoted price of van insurance rose by 33.2% in the year to March 2024 – but the rate of increase is slowing.

That was according to Consumer Intelligence’s Van Insurance Price Index, which showed that the latest annual increase was lower than the 35.9% recorded last year.

And in the last three months, quoted premiums rose by 3.3%, which is the lowest quarterly increase across the last five quarters.

Laura Vas, senior insight analyst at Consumer Intelligence, said: “The recent two quarters movements suggest that the rate of inflation is showing signs of slowing.”

Inflation

However, the average quoted van insurance premium has risen by 202% in the 10 years since April 2014, when Consumer Intelligence first started collecting van data. 

Quoted premiums for the under-25s also doubled by 100%, but increased by 224% for those aged between 25 and 49 and by 217% for the over-50s.

Consumer Intelligence felt that the rising cost of claims and repairs, fuelled by increased prices for replacement parts, continues to drive inflation in quoted premiums.

“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,” Vas said.

“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.”