Consumer Intelligence reveals reduction in insurance premiums

Consumer Intelligence reveals reduction in insurance premiums

Analysis from Consumer Intelligence has shown that Van insurance price rises, are going into reverse with annual premiums dropping 1.7% in a year to an average £1,240.

Drivers, who are still using vans for work, are reportedly still feeling the full benefit of the price cuts with average annual bills falling 0.9% in the year, while drivers who use vans as a substitute for a car, have seen prices drop by 5.5% in the year to July.

Average annual premiums for ‘carriage of own goods’ policies, taken out by business users, are at £1,254 compared with £1,183 for customers who insure under social, domestic and pleasure.

However, average annual bills are still 35.2% higher than they were in April 2014, when Consumer Intelligence first started collecting the data.

The past year has reportedly seen the biggest price reductions for younger drivers as those aged 17 to 24 are seeing prices 12.4% lower than a year ago, while over-50s have only had price cuts of 0.4%. Those aged between 25 and 49 are seeing slightly higher bills with premiums up 0.8%, however, under-25s have seen an average of £4,017 compared with £823 for those aged 25 to 49 and £578 for the over-50s.

Increased competition across the market and no tax rises, coupled with the prospect of changes to the Ogden rate governing compensation for major personal injury claims to the benefit of insurers, is said to be driving down prices in line with the car insurance market.

John Blevins, Consumer Intelligence Pricing Expert, said: “Insurers are able to reduce prices as there are no major issues driving premiums currently and it’s simply the cost and frequency of claims that is having an impact.

“Drivers using vans for work are more likely to make bigger claims as it’s not just damage to bodywork but lost business and damaged equipment they will be claiming for.

“There are some minor issues of fraudulent claims across the market which potentially has more impact on business users.”

PAST THREE MONTHS -0.2% -2.4% +0.7% -2.2%
PAST SIX MONTHS -1.8% -5.5% -1.3% -0.3%
PAST YEAR -1.7% -12.4% +0.8% -0.4%
SINCE APRIL 2104 +35.2% +14.9% +40.3% +38.5%

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