How much does van insurance cost? Young drivers face £2,342 bill

  • Average cost of van insurance is down 3.3% since October 2020 
  • Under-25s have seen a substantial 18.1% reduction, but still face enormous annual bill
  • Business van insurance now cheaper than private van insurance

According to research by data consultancy Consumer Intelligence, the average cost of an annual van insurance premium in the UK is now £977, a slight drop from the £985 amount reported in August 2021.

And while almost all types of van drivers have seen a reduction, it’s young drivers that have benefitted most, with a 18.1% reduction in average cost in the last 12 months.

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Does how I use my van increase my insurance cost?

Private van users – those who run a van as an alternative to a regular car – have seen average premium prices fall 4.8% in the last 12 months to £1,039. For those who use their van for business there’s been a smaller 2.9% reduction, resulting in an average annual cost of £915.

Age continues to have the biggest impact on van insurance cost, however.

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

>> Everything you need to know about private van insurance

Van insurance costs are going down

You might be surprised to learn that van insurance is actually going down in cost.

Biggest drop of all comes for the under-25 age group. Over the last 12 months, Consumer Intelligence claims that average premiums for these younger van drivers have fallen by a chunky 18.1%.

But that doesn’t mean it’s cheap – the average cost for annual van insurance for under-25s is still £2,342. That’s down considerably rom the £3,085 average reported in May 2021 and the £2,792 average of August 2021. But still: ouch.

That’s over three times more than the average for drivers in the 25-49 age group, who are typically paying £761 per year. That’s a 0.8% reduction since October 2020.

Van drivers over 50 face the lowest premiums of all, however, with an average van insurance cost of £600. That’s a fall of 1.2% in the last 12 months.

Until there are more young driver insurance options for vans that use telematics black boxes (now common for young driver car insurance policies) this gap won’t be closing any time soon.

Has van insurance been getting more expensive over time?

Consumer Intelligence says it’s been tracking van insurance prices since April 2014, and that there’s been a 31.9% increase in average premium prices over that time. meaning van insurance is nearly a third more expensive than it used to be.

That’s way above the cumulative rate of inflation since that time, which works out at around 17.5%.

Again, older van drivers have taken the brunt of this climb, with the 25-49 and over-50 groups seeing an average rise of 49.8% and 47.9%, respectively.

Meanwhile, premiums for van drivers aged under 25 have fallen by over fifth (26.8%) since 2014.

Still, it could be worse. According to Consumer Intelligence, van insurance was at its highest in September 2017.

What impact has COVID-19 had on van insurance?

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

But having risen to just over 2020 levels earlier in 2021, prices have now fallen back again.

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 consider upgrading your van security for lower insurance premiums. Our guide to van security has all the latest advice.

Also read:

>> One in four van drivers have experienced tool theft

>> What is private van insurance?

>> What is business van insurance?

>> Van security guide – top tips to avoid van theft

>> More about van insurance on Parkers