Van insurance costs hit three-year high

Date: Thursday, October 26, 2017   |   Author: James Dallas

The cost of van insurance in September was up by a third year-on-year to an average £1,214, according to market analyst Consumer Intelligence, to hit the highest level since April 2014.

Consumer Intelligence blamed Government-driven insurance premium tax rises and the cut in the Ogden rate governing pay outs for personal injury claims for the 31.7% price hike in annual premiums.

It added that increased claims and fraud costs, combined with the weak pound  pushing up repair costs, had also contributed to price rises.

There was relief for drivers opting for Carriage of Own Goods cover – suitable for those relying on their vans for work – however, with premiums leveling out to an average £1,186.

Consumer intelligence said plans to reverse the Ogden rate change, which would reduce insurers’ compensation payments to victims, were helping to slow cost increases but warned prices were still climbing 2% month-on-month overall.

John Blevins, Consumer Intelligence pricing expert said: “We are still not seeing a return to the steadier 1% month-on-month price rises before the Ogden rate adjustment in March.
“With the value of the pound remaining low, the cost to repair vehicles is rising, particularly where parts have to be brought in from overseas. The cost of claims is also increasing as vans now have more advanced technology onboard.”

 

 



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