Young van drivers facing insurance bill of £3,683, while average van insurance cost is now £1,116

  • Van insurance up 2.3% over last six months following early lockdown dip
  • Cost of van insurance for under-25s is falling, while older drivers are paying more
  • Private van insurance is cheaper than business van insurance

Average cost of van insurance revealed

According to research by Consumer Intelligence, the average cost of annual van insurance in the UK is £1,116. But although this is just 0.1% higher than this time last year, it seems the difference between business and private van use is also the difference between prices going up and prices down.

For while private van users – those who run a van as an alternative to a regular car – have seen average premium prices fall 2.7% to £1,059, those who use their van for business have faced an average premium increase of 1.1%, resulting in a higher average annual cost of £1,135.

What’s more, your age is has an even bigger impact on insurance cost rises than it did before. And perhaps not in the way you might think.

>> The Parkers guide to business van insurance – and why you need it

Van insurance costs for younger drivers are going down

You might be surprised to learn that van insurance for drivers aged under 25 is actually going down in cost.

Over the last 12 months, Consumer Intelligence claims that average premiums for this age group have fallen a chunky 14.4%.

But that doesn’t mean it’s cheap – the average annual van insurance premium for under-25s is now £3,683. Ouch.

Until there are more young driver insurance options for vans that use the telematics black boxes (now common for young driver car insurance policies) it seems it’s unlikely this huge figure will be changing dramatically anytime soon.

Van insurance costs for older drivers are going up

At the same time, average van insurance costs for the 25-49 age group rose 4.4%, while those in the over-50 category have seen a 4.5% increase.

The actual annual price is much more reasonable for these age levels, however, with those aged 25-49 paying an average of £783, and the over-50s paying £509 on average.

Has van insurance been getting more expensive for a long time?

Consumer Intelligence claims to have been tracking van insurance prices since April 2014, and since that time says there’s been a 37.4% increase in average premium prices.

Again, older van drivers have taken the brunt of this climb, with prices increases 52.3% and 53.1% for the 25-49 and over-50 groups.

Premiums for van drivers aged under 25 have fallen 12.5% over the same period of time.

What impact has COVID-19 had on van insurance?

When the initial coronavirus lockdown kicked off in 2020, van insurance prices fell, reflecting the fact that many people were driving fewer miles.

But according to Consumer Intelligence, in the last six months, prices have climbed 2.3% - back to just slightly higher than they were before the lockdown.

Again, this probably reflects current mileages – which may also explain why private van insurance has remained down. Except for essential journeys, you shouldn’t be driving your private van much at all at the moment, whereas anyone with a working van probably can’t work from home and is back out there at the coalface by now.

How can I make my van insurance cheaper?

The same with anything, really: shop around. The easiest way to do this is with price comparison website – and Parkers’ sister firm mustard.co.uk is one of the best.

Also read:

>> What is private van insurance?

>> What is business van insurance?

>> More about van insurance on Parkers