Finally, some good new for van insurance!
Van insurance is known to be more of a headache than car insurance. Vans are often more technologically advanced and of course as the majority of van owners use their vehicle for work purposes, the insurance needs to cover loss of business if someone loses work. Both these factors mean that insuring your van is usually pricier than insuring your car.
And last year average premiums for vans rose 20.3% in the year to the end of January, making premiums an average £1,202! But there’s some good news for once… over the last six months there has been a slow-down in insurance prices for vans with prices dropping by 3.5%.
It’s due to a change in tack from the government around something called the Odgen rate. If you’re not familiar, this is a figure decided by the government when they calculate what interest they think a compensation pay-out for a serious injury could gain - the lower the interest rate, the greater the compensation. And early last year, the government slashed the rate from 2.5% to 0.75%. The result? The above-mentioned hike in insurance costs.
But now the Odgen rate has been reconsidered, and is set to be between 0% to 1%. This is good news for the insurance industry, and those paying insurance of course!
However it might be best to wait a little bit before splurging all your potential savings… There’s also been a rise in the size of claims due to more advanced technology in vans. Pricing expert John Blevins from Consumer Intelligence, who carried out the research into recent van insurance rates said: “The market is returning to normal now the Ogden effect is wearing off and it is possible we could see more cuts once the new rate is decided.
“But the other market fundamentals remain the same with the weak pound increasing the cost of repairs when parts have to be brought in from overseas, and more advanced technology in vans driving up the cost of claims.”
So, celebrate but maybe not too extravagantly!
And last year average premiums for vans rose 20.3% in the year to the end of January, making premiums an average £1,202! But there’s some good news for once… over the last six months there has been a slow-down in insurance prices for vans with prices dropping by 3.5%.
It’s due to a change in tack from the government around something called the Odgen rate. If you’re not familiar, this is a figure decided by the government when they calculate what interest they think a compensation pay-out for a serious injury could gain - the lower the interest rate, the greater the compensation. And early last year, the government slashed the rate from 2.5% to 0.75%. The result? The above-mentioned hike in insurance costs.
But now the Odgen rate has been reconsidered, and is set to be between 0% to 1%. This is good news for the insurance industry, and those paying insurance of course!
However it might be best to wait a little bit before splurging all your potential savings… There’s also been a rise in the size of claims due to more advanced technology in vans. Pricing expert John Blevins from Consumer Intelligence, who carried out the research into recent van insurance rates said: “The market is returning to normal now the Ogden effect is wearing off and it is possible we could see more cuts once the new rate is decided.
“But the other market fundamentals remain the same with the weak pound increasing the cost of repairs when parts have to be brought in from overseas, and more advanced technology in vans driving up the cost of claims.”
So, celebrate but maybe not too extravagantly!
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