The quarterly pricing study found that under-25s are the biggest losers, with the average costs of a new policy increasing by 4.5% in the three months to 31 July, taking annual premiums to £3,297.
Average best-buy prices across the market as a whole grew by 2.7% during the period, taking the average increase for the year to 11%. Under-25s have seen an average annual increase of 7.2%.
However, van drivers who opt for ‘carriage of own goods’ cover – which is appropriate for workers such as builders, plumbers, carpenters and shopkeepers who commute to work – are escaping the worst of the price rises. They pay average annual premiums of £891 compared to £1,294 for those who opt for ‘social, domestic and pleasure’ cover.
In addition, annual premiums for ‘carriage of own goods’ cover are increasing slower than the rest of the market – by 9.7% for the past year while ‘social, domestic and pleasure’ cover has increased by 17%.
“The van insurance market is seeing double digit price rises in line with the car insurance market as a whole, with van drivers paying higher premiums than motorists,” Head of Business Development Helen Cassley said. “When people are using their vans for work, as more and more people are doing, it adds substantially to the costs of doing business.
“That means it makes sense for drivers to ensure they source the appropriate insurance for their van as there are substantial savings for those who only need ‘carriage of own goods’ cover. Shopping around will also help, as prices vary month on month and between providers.”
For those who choose ‘carriage of own goods’, their cover will also include social, domestic and personal use. Those who choose ‘social, domestic and personal use’ are covered to and from a permanent place of work. A lot of people who choose this cover and have a van will probably have a pastime that suits having a van as either their sole vehicle or as a second vehicle.