Van insurance premiums in the UK continued to fall in late 2025, with average prices down by 4.4% over the three months to November, according to Pearson Ham Group’s Van Insurance Price Index.
Overall, van premiums are now 7.6% lower than six months ago and 19% below the same period a year earlier, extending a downward trend that has been in place since mid-2024 and amounting to an accumulated reduction of nearly 26% from the market peak.
The decline has not been evenly distributed across the market, with insurers taking divergent approaches to pricing. Pearson Ham’s analysis shows that, over the latest quarter, changes in average premiums among major van insurers ranged from a 6% cut to a 33% decrease, indicating that some carriers have moved more aggressively than others in response to competitive and market conditions.
Stephen Kennedy (pictured above), director at Pearson Ham Group, said “a year and a half of sustained easing has reshaped the competitive landscape in van insurance,” noting that prices have fallen month after month since June 2024.
He said some carriers are pushing rate reductions “aggressively, while others are holding back,” and that this divergence has become “a defining feature of the market” and helps explain why individual performance can differ from industry averages.
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Pearson Ham introduced its Van Insurance Price Tracker earlier this year to monitor these shifts, using daily data on the most competitive quotes across the market. Its initial release showed average top-five quoted premiums falling 3.3% between June and August, 7.7% over six months and more than 20% year-on-year, pointing to intensified competition and signalling growing pressure on insurers’ margins in a line often viewed as more stable than private motor.
The downturn in pricing has been broad-based across customer groups and regions. All UK regions recorded substantial annual reductions, with the North East seeing the smallest year-on-year fall at about 17%, while London posted the largest decline at 21% down compared to last year.
Age remains an important driver of how far premiums have fallen. Younger van drivers under 26 have seen average prices drop by roughly 22% year-on-year, the sharpest decline among age cohorts, while drivers aged 61 to 70 recorded smaller savings with premiums down around 16% over the same period.
Premiums have also declined across van usage types, including business use for carriage of own goods, haulage operations and social or commuting purposes. Across these categories, prices have fallen by approximately 15% to 20% over the past 12 months, although the haulage segment – a relatively small part of the van market – saw one of the more modest annual reductions and a slight month-on-month uptick in November.
Annual mileage appears to have had limited impact on the overall pattern of reductions. Pearson Ham’s index shows that vans across mileage bands experienced similar price movements, with year-on-year decreases generally in the 18% to 20% range.
Sam Pompilis, market insights consultant at Pearson Ham Group, said the firm’s tracker provides a daily, granular view across factors such as driver age, region, usage and product tier.
“We’re seeing notably consistent year-on-year reductions across mileage bands, smaller cuts for haulage, and the sharpest falls among younger drivers,” he said, adding that this segmentation is intended to help insurers and brokers “understand where pricing is moving and why, so they can respond with precision.”
