The average price of van insurance has risen 13.3 percent in the last 12 months, according to new figures.
Market analysis by Consumer Intelligence found that the average van insurance premium is now £1,190 – an increase of about £40 over previous years.
The news means the cost of van insurance has risen by 35.5 percent in the past four years – an increase Consumer Intelligence blames on the cost of repair. The organisation says prices have been pushed up by the amount of on-board technology currently fitted to vehicles, as well as the weakening of the pound. Vans such as the new Mercedes-Benz Sprinter come loaded with almost as much tech as its cars.
However, the company’s pricing expert, John Blevins, said the rising prices were also partly down to government policy. Blevins blamed the Ogden rate, which is used to calculate the value of whiplash and personal injury claims, as well as tax hikes.
‘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,’ he said. ‘Currently it is rising claims costs that are driving premiums and it looks unfortunately as if prices will continue to increase.’
However, Blevin admitted that a review of the Ogden rate and the introduction of the Civil Liability Bill, which is designed to reform whiplash claims processes, could lead to savings further down the line.
‘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,’ he said. ‘And the sooner the government pushes through the Civil Liability Bill, the better off drivers will be.’