How can van drivers avoid rising insurance costs?

Van insurance costs are rising with policy premiums in the UK facing an average price rise of 14.1% in the past year – that means premiums of around ￡1,344. With figures like that, it’s no wonder van drivers are looking to beat the rise, and Vanarama is right there to help with our premium-freezing Multi-Year Insurance policies. Vanarama Content Editor Tom Roberts reports.

It’s no secret that the increase in van insurance costs is piling the pressure on self-employed workers. And while the cost of living rises, it would be nice to think there are products out there that work to your advantage – like our ground-breaking Multi-Year Insurance policies, which freeze your annual insurance premium across the entire term of your lease agreement.

Insurance premium rises continue to hit the UK market. In April 2017, the Association of British Insurers (ABI) recorded an 8% increase in motor premiums in the 1st quarter of 2017, while the motor insurer ERS stated that it expects motor insurance premiums to rise by 20% for a standard vehicle by January 2018. That’s huge, and represents an average increase of nearly ￡70 to the cost of insurance – that’s just over half a weekly shop for the average 2.4-children family!

We can FREEZE your insurance premium price!

It’s not hard to understand why we decided to work with our underwriters to create Multi-Year Insurance policies. With this unique product, we can exclusively offer Vanarama customers a premium guarantee on van insurance policies, but what does that mean? Simply, the annual cost of your insurance will not change from the day you buy it across the duration of your lease*.

You could come to us right now to lease a van for three years, for example, and get a Multi-Year Insurance policy with a premium that doesn’t change year-to-year – this means:

• No rising costs*
• No nasty surprises
• Just total control and no distractions

You focus on building your business, we’ll make sure you get the best deal and keep you protected. This specialist insurance product is only available to Vanarama leasing customers, and can only be purchased by giving us a call on 01442 838173 and speaking to one of our friendly specialists.

How fast are insurance costs rising?

Research from Consumer Intelligence has shown that the average cost of van insurance is increasing at a faster rate than car insurance due, primarily, to the higher cost of claim pay outs (and for the equally-important reason that insurance may have to cover lost business as a result of owners not being able to work). Van owners using their vehicle for work usually face lower average costs than those using them for pleasure because workers are generally more careful with their van as they’re more reliant on it.

Ian Hughes, Chief Executive of Consumer Intelligence, said: “Van drivers pay higher insurance bills than car drivers, and with more people using their vans for work that adds to the costs of doing business. Choosing the appropriate cover is vital when keeping costs down and opting for carriage of own goods will reduce premiums. However, the trend is up across all segments of the market underlining the need to shop around as prices will vary month on month and between providers.”

*Vanarama van lease customers only. Subject to no changes in your driving history (e.g. licence points, fault claims, disqualification, etc.), and the nature of the insurance risk you present (e.g. moving house, changing jobs, etc.). While changes introduced by government taxation (such as Insurance Premium Tax) and statutory regulations or introduced by industry regulators, are excluded.