What’s driving the van insurance premium drop?
- insurance brokers accessing competitive markets for commercial vehicle policies; and
- reforms to motor insurance that have reduced the cost of third party claims.
MORE good news for trades and small van fleet operators: not only is the cost of fuel staying reasonably stable but van insurance premiums have gone down too.
And let’s face it, any opportunity to pay less on your van insurance has to be welcome.
So what’s gone on?
If you’re a small businesses you should have seen van insurance premiums reduce by a record 10% in the first quarter of 2015 compared to the same time last year.
The reduction is reported to be the biggest drop for business vans in the last five years according to the British Insurance Brokers’ Association’s (BIBA) and Acturis Insurance Price Index that tracks £5billion of actual premiums paid annually via insurance brokers since 2010.
What’s more there’s also been a 6% reduction in the combined cost of general insurance for an SME comprising their commercial package and commercial vehicle policies.
Graeme Trudgill, BIBA’s executive director, said:
“This is positive news for the white van man. Brokers are working really hard for customers, which has led to increased competition. Brokers have also capitalised on the reforms to motor insurance that have occurred during recent years such as the 40% reduction to uninsured driving and the legal changes to reduce the impact of personal injury referral fees.
“Small businesses can find it difficult and time consuming to find the right cover, but brokers know the market well and are able to work on behalf of customers to get the right cover at the best price.”
If you’re looking for an insurance broker, check out a BIBA broker at www.biba.org.uk.