Rise in cost of van insurance

Date: Friday, May 11, 2018   |   Author: Sean Keywood

Average van insurance prices rose by 13.3% in the year to March, according to market analysis firm Consumer Intelligence.

The rise meant average premiums had reached £1,190.

However, the picture had improved towards the end of the survey period, with premiums having dropped by 4.7% in the last six months of the year.

During the past four years, since Consumer Intelligence started monitoring prices, they have risen by 35.5%.

Consumer Intelligence says the cost of claims is keeping prices high with the increased use of on-board technology making vans more expensive to repair after damage while the cost of importing parts has also climbed due to the weakness of the pound.

Claims for whiplash injuries and fraudulent claims are also adding to the pricing pressure.

Consumer Intelligence argues government actions could help keep premiums down, including confirmation of a new Ogden rate between 0% and 1% from the current minus 0.75% and using the Civil Liabilities Bill to set limits on whiplash claims.

Consumer Intelligence pricing expert John Blevins said: “Since our records began prices are up 35.5% overall with government action including the Ogden changes and tax rises adding to increased claims and fraud costs.

“Currently it is rising claims costs that are driving premiums and it looks unfortunately as if prices will continue to increase.

“Some insurers have been passing on the savings from the Ogden Rate review and when the new rate is confirmed there may be some more benefits for van drivers.

“The sooner the government pushes through the Civil Liability Bill the better off drivers will be.”

 



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