Van insurance premiums settle after sharp falls
Van insurance premiums have come down by nearly 10% in a year, according to Defaqto’s latest Quarterly Van Insurance Price Index.
Meanwhile, prices are now about 18% lower than they were at the start of 2025.
However, figures from the latest quarter suggest that van insurance premiums have now stabilised, with 0.2% falls in March and April followed by 0.4% increase in May.
Prices over the last six months have fallen by just 2.4%, signalling a clear slowdown in the pace of rate reduction.
Significant movement
Stephen Kennedy, director at Defaqto, said: “Van insurance premiums may have flattened over the latest quarter, but the bigger story is the extent of the correction that has already taken place.
“Average quoted prices are almost 10% lower than a year ago and around 18.5% below where they stood at the start of 2025. That is a significant movement in any market, and it shows how strongly insurers have competed for van business over the past 18 months.
“The fact that prices were unchanged over the past three months should not be mistaken for a lack of market movement. Rather, it suggests the most aggressive phase of rate reduction may have passed. The market has repriced materially, and insurers now face the challenge of maintaining competitiveness while protecting underwriting discipline.”
