TRADESMEN HIT BY VAN INSURANCE RISES – BUT HERE’S HOW TO PAY LESS

Van drivers across the UK have been hit with rising insurance costs over the past year – but new data suggests there are ways to keep costs down.

According to analysis from van insurance provider Zego, based on thousands of real-world quotes and data from the Consumer Intelligence Van Insurance Price Index, van insurance premiums rose by 6.9% in the 12 months to November 2024. However, there are signs that prices are starting to level off, offering some hope for drivers.

WHO’S PAYING MORE?

Insurance costs have increased across the board, but some groups have been hit harder than others:

• Middle-aged drivers (25-49) saw the biggest increase, with premiums rising 8.4% over the year.
• Over-50s faced a 4.7% increase, although they still typically enjoy lower premiums.
• Young van drivers (under-25s) saw a smaller 1.1% rise, but they continue to face the highest overall costs.

The study found that only 6% of under-25s could find a policy for less than £750. Meanwhile, 40% managed to secure a quote under £1,500, an improvement from 33% in 2023.

WORK VERSUS PERSONAL USE – WHO PAYS MORE?

Van insurance costs vary depending on whether the vehicle is used for business or personal reasons:

• Tradespeople using vans for work (Carriage of Own Goods) saw a small price drop of 0.7% in the last six months.
• Drivers using vans for social and personal use (Social, Domestic & Pleasure) were hit with a 3.2% price hike, showing that insurers still see them as a higher risk.

Zego’s telematics-based insurance, which tracks driver behaviour, is playing a role in keeping some costs down by rewarding safer driving.

HOW VAN DRIVERS CAN CUT INSURANCE COSTS

With van insurance remaining at record-high levels, drivers need to be savvy when renewing policies. Here are some ways to cut your costs:

1. Shop Around – Don’t auto-renew! Comparing quotes from different insurers can save hundreds of pounds.
2. Consider a Telematics Policy – Insurers like Zego Sense use smartphone-based tracking to offer lower prices for safer drivers.
3. Increase Your Voluntary Excess – A higher excess can reduce monthly premiums – but make sure you can afford it if you need to claim.
4. Improve Vehicle Security – Parking in a secure location, installing an immobiliser, or using a steering lock can help lower costs.
5. Limit Mileage Where Possible – If you don’t drive many miles, a low-mileage policy could mean a cheaper premium.
6. Bundle Insurance Policies – If you have multiple vehicles or other insurance needs, some providers offer discounts for bundling policies together.

WHAT’S NEXT FOR VAN INSURANCE?

While prices remain high, the latest data suggests that steeper hikes may be slowing. As more insurers introduce technology-driven policies, drivers who prove they’re low-risk could start to see more competitive pricing in the near future.

For now, van drivers shouldn’t accept the first renewal quote they receive. Shopping around, improving security, and considering usage-based insurance could make all the difference.