Van drivers' motor premiums drop

Van drivers are benefiting from a slowdown in insurance price rises with costs dropping 0.4% in a year and a more significant 1% reduction has been observed in the past three months, despite the Ogden rate change. The average premium price is £1,781.

This is according to a study conducted by data analytics company Consumer Intelligence.
Young drivers have seen the biggest fall in their premiums, with a 9.3% decrease in the past year. Yet they still pay the highest average price, at £4,673.

Over the same period, over 50s experienced a 2.4% price increase, as their average premiums reach £581. Van drivers aged 25-49 now pay £843 on average, a rise of just 0.3% in the last 12 months.

The company said that premiums have soared across the market by 34.4% over the past five years, a rise primarily driven by increased claims costs. The value of claims is increasing as more technologically advanced vehicles require higher repair costs, exacerbated amid Brexit uncertainty by the need to import parts for vehicles manufactured overseas.

Product manager at Consumer Intelligence, John Blevins said: “Whilst claims costs continue to be one of the main drivers for premium changes in this market over the long-term, we are seeing premiums trending down over the last 12 months.

“It appears that the Ogden rate reset hasn’t had quite the impact some in the industry predicted. The price reductions over the last quarter have actually confounded many forecasts.”

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