Insurance premiums for young drivers hits £3000

Young van drivers are now paying more than £3000 for annual insurance cover, a report by Consumer Intelligence has shown.

Consumer Intelligence blames the Insurance Premium Tax (IPT) for rising policy quotes overall, which was bumped up from 6.0 per cent to 9.5 last year, and will go up to 10 per cent from October 2016. However, van drivers can count themselves lucky in the grand scheme of things, as car insurance policies have risen by 13 per cent on average, according to the same report.

The average van premium across all age groups rose by 6.1 per cent, now £954, and although the premium for ‘carriage of own goods’ (COG) type insurance has risen by more (8.8 per cent), Consumer Intelligence says that it is this policy that could save van drivers a significant amount of cash.

“It makes sense for drivers to ensure they source the appropriate insurance for their van. Those who only need carriage of own goods cover can make substantial savings. It also makes sense to shop around as prices will vary month on month and between providers,” says Consumer Intelligence Chief Executive Ian Hughes.

Carriage of own goods policies include social, domestic and personal use, which is often enough for many van owners – meaning that workers who use a van mainly to commute to work can save hundreds, depending on age. The average COG policy is now £859, some £100 cheaper than the average commercial vehicle policy.