Van insurance premiums in the UK declined by 5.0% in the year to the end of August, though recent data suggests the pace of reductions may be slowing.
The latest Consumer Intelligence Van Insurance Price Index reports that in the three months to the end of August, quoted premiums dropped by 1.3%, with direct insurer brands largely holding or raising prices while intermediary insurers reduced rates.
Drivers aged 25 to 49 and those using vans for work saw the largest decreases. Quoted premiums for 25 to 49-year-olds fell by 5.7%, while those using vans for work experienced a 5.6% drop over the same period. Under-25s saw a 4.4% decrease, and the over-50s recorded a 2.6% fall in quoted premiums.
Consumer Intelligence data from August shows that the most common quoted premium for a new van insurance policy was between £500 and £749, accounting for 20% of quotes. Another 18% of quotes fell within the £750 to £999 range.
“Van insurance new business quotes continue to fall building on the trend which started this year,” said Laura Vas, senior insight analyst at Consumer Intelligence. She noted that two direct insurer brands remain competitive leaders, though their share has declined as they have maintained or increased prices in the past three months.
“Many providers, particularly brands from intermediary insurer groups, have reduced their rates offering some van drivers more affordable quotes compared to three months ago,” Vas said.
The data also highlights differences by age group. Around 42% of under-25s can now obtain a quote for less than £1,500, up from 38% last year. For those aged 25 to 49, 49% secured quotes below £750 in August, while 38% of over-50s were able to source a quote for less than £500.
Since Consumer Intelligence began tracking van insurance premiums in April 2014, average quoted premiums have increased by more than 200%. Premiums for under-25s have nearly doubled, while those for drivers aged 25 to 49 have risen by over 230%. This long-term perspective provides context for the recent downward trend, showing that despite the current decrease, premiums remain significantly higher than a decade ago.
The market has also seen the emergence of telematics-based van insurance products which have helped moderate inflation in affordable quotes. These app-based offerings have consistently ranked among the top five for van drivers, indicating a shift in how insurers are using technology to manage pricing and risk.
Tradespeople experienced the largest annual drop in quoted premiums, down 5.6% in the year to the end of August and 1.0% in the past three months. Drivers using vans for Social, Domestic, and Pleasure purposes saw premiums fall by 3.0% over the past year and 1.9% in the last quarter.
Long-term data shows that since tracking began, quoted premiums for Social, Domestic, and Pleasure use have risen by 249.1%. Owners using vans for Carriage of Own Goods have seen premiums increase by 163.6%.
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