Consumer Intelligence has released its latest Van Insurance Price Index which shows that, while the average best-buy premiums for van insurance have increased 14.1% to £1,344 in the year to January 2017, van drivers who use their vans for work can save up to a whopping £264 a year. Vanarama Content Editor Tom Roberts reports.
As if there weren't enough financial pressures on van-driving small business owners, the rising cost of van insurance is adding to it. But the good news is that Consumer Intelligence's quarterly Van Insurance Index has found the biggest price rises are being faced by drivers who use their vehicles as substitutes for cars – average premiums paid under "social, domestic and pleasure" cover have increased 18% compared with 13% in the year to January 2017 for drivers using vans for work.
Work or play?
Average best buy premiums for "carriage of own goods" suitable for workers such as builders, plumbers, carpenters and shopkeepers who commute to work are £1,293 compared with £1,557 for "social, domestic and pleasure". The price difference between "social, domestic and pleasure" and "carriage of own goods" is driven by insurers rating customers using vans for work as a better risk as they are more likely to be careful with their vehicle as it's vital for work.
Average premiums for vans are rising faster than for cars as the cost of claim payouts is higher because insurance may have to cover lost business as a result of owners not being able to work.
Ian Hughes, Chief Executive of Consumer Intelligence, comments: "Van drivers pay higher insurance bills than car drivers and, with more people using their vans for work, that adds to the costs of doing business. Choosing the appropriate cover is vital when keeping costs down and opting for carriage of own goods will reduce premiums. However, the trend is up across all segments of the market underlining the need to shop around as prices will vary month on month and between providers."
Vanarama Insurance Services can help
Yes, there's a plug coming, but this is an area where Vanarama's specialist insurance products can really make a difference – especially because customers can get everything they need to protect their van and business in ONE place.
Our Multi-year Policies, for example, fix your insurance premium* for the entire duration of your lease, and allow it to be paid in affordable monthly installments alongside the rental charge – highly convenient.
So, why not give us a call on 01442 838173? In just a few minutes, we can provide you with a competitive quote for your business' exact needs.
*Vanarama van lease customers only. Subject to no changes in your driving history (e.g. licence points, fault claims, disqualification, etc.), and not changing the nature of the insurance risk you present (e.g. moving house, changing jobs, etc.). While changes introduced by government taxation (such as Insurance Premium Tax) and statutory regulations, or introduced by industry regulators, are excluded.