The latest Consumer Intelligence Van Insurance Price Index — the definitive benchmark for van insurance price movements in the UK — reports a significant rise in van insurance premiums over the past year.

Compiled from real customer quotes on price comparison websites, the index reveals a 24.7% increase in premiums in the 12 months leading to the end of June 2024. Despite this substantial annual rise in van insurance costs, the pace of growth has slowed, with a modest 2.7% rise in the last quarter — the lowest quarterly increase in more than a year.

For van drivers under 25, quoted premiums have decreased by 1.4% in the last three months. However, over the past year, their premiums still saw an 11.1% rise, although that’s significantly lower than the 28.8% increase for drivers over 50 and the 26.1% rise for those aged 25 to 49.

Most van drivers received insurance quotes between £750 and £999, with 16.4% of quotes falling within this range. Unsurprisingly, most other quotes sat either side of that range, with 15.5% being quoted between £500 and £749 and 14% facing prices of £1,000 to £1,249. Notably, 16% of drivers were quoted premiums of £2,500 or more.

Direct insurers have become more competitive, providing 37% of the top five quotes on price comparison sites in June 2024, up from 28% a year ago. “Across the price comparison websites, intermediaries have seen higher levels of inflation across the last twelve months than direct insurers. As a result, there has been an uplift in the presence of direct providers in the top five quotes,” says Laura Vas, Senior Insight Analyst at Consumer Intelligence.

Since the inception of the Consumer Intelligence index in April 2014, quoted van insurance premiums have risen by an average of 210.3%. For under-25s, premiums have nearly doubled, with a 96.8% increase, while premiums for those aged 25 to 49 have risen by 235.9% and for those over 50 by 223.7%.

Despite the lower rate of increase for younger drivers, only 28.5% of under-25s were able to obtain quotes under £1,500, compared to 89.3% of drivers aged 25 to 49 and 97.5% of those over 50. For premiums under £750, just 5.7% of under-25s received such quotes, versus 35.7% of those aged 25 to 49, and 64% of over-50s.

The use of the van also affected premiums. Owners using vans for social, domestic, and pleasure purposes saw a 26.5% rise, while tradespeople experienced a 24.1% increase. Since the index began, social and domestic use premiums have surged by 266.3% and for tradespeople by 187.4%.

The data underscores the shifting dynamics in the van insurance market, highlighting a trend toward slower premium increases and greater competitiveness among direct insurers.

Phil Huff
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