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Last updated: 20 March 2026
Older stories about the Association of British Insurers (ABI) “tackling high premiums” often reference a 2016 report, Lifting the Bonnet on Car Insurance, which set out a multi-point plan covering injury claims, Insurance Premium Tax (IPT), young driver safety, safer vehicles and fraud.
A lot has changed since then. Some reforms have already happened, while other ideas are still proposals. Here’s the up-to-date picture that matters for UK van owners and small fleets.
1) Injury claims: the big change is the whiplash tariff
One of the ABI’s long-running themes has been reforming low-value personal injury claims. In England and Wales, the major shift is the whiplash tariff, introduced on 31 May 2021, which sets fixed compensation amounts for road traffic whiplash injuries lasting up to two years.
The system is also subject to statutory reviews (the government has run calls for evidence as part of that process). In practice, injury-claim rules are now more structured than when older “premium reform” articles were written, but injury costs are only one part of the overall premium equation.
2) Insurance Premium Tax (IPT): the rate is stable — and baked into the price
IPT is still a straightforward cost add-on for most motorists and businesses. GOV.UK confirms there are two IPT rates:
- 12% standard rate on most types of insurance (including motor)
- 20% higher rate for travel insurance and certain insurance sold with some goods
So while older ABI commentary argued against further rises, the key point today is simple: IPT is part of what you pay, and when the underlying premium rises, the tax amount rises too.
3) Young driver safety: proposals continue (and some parts are moving)
The ABI continues to support Graduated Driver Licensing (GDL) as a road-safety measure. In Great Britain, the DfT is consulting on introducing a minimum learning period between passing the theory test and taking the practical test. Northern Ireland plans to introduce GDL from 1 October 2026.
For van fleets employing younger drivers, the operational takeaway is to tighten your own controls now (induction, coaching, telematics where appropriate), rather than waiting on regulation.
4) Safer vehicles and tech: helpful, but not a magic premium switch
Safety technology (autonomous emergency braking, collision avoidance) can reduce crash severity in some scenarios, which is good for people and can help claims outcomes. But insurers also consider real claims experience, repair costs, and theft trends — so safety tech should be treated as risk reduction, not a guaranteed premium discount.
5) Fraud: the numbers are bigger than the old 2015 figures
Fraud remains a major focus. The ABI’s 2024 data shows:
- £1.16bn of fraudulent general insurance claims detected in 2024
- 98,400 fraud-related claims uncovered in 2024 (up 12% on 2023)
- Motor insurance was the most targeted area, with 51,700 motor frauds worth £576m detected in 2024
For van owners, fraud doesn’t just affect “other people”: it feeds into the overall cost base that premiums are built on.
What you can do (that genuinely helps)
If you’re trying to keep van insurance costs under control, focus on factors that directly affect risk and claims:
- Secure parking routines and strong van/tool security
- Accurate cover and “class of use” (especially for delivery/hire & reward)
- Reducing collision exposure (phone rules, fatigue management, driver coaching)
- Quick reporting and good evidence (dash cam, photos, telematics data where used)
These steps don’t guarantee lower prices, but they reduce the chances of costly claims and disputes — which is the part you can control.
Sources
- ABI — Lifting the Bonnet on Car Insurance (Oct 2016 PDF)
- GOV.UK — Insurance Premium Tax guidance (rates: 12% standard, 20% higher)
- Legislation.gov.uk — Whiplash Injury Regulations 2021 (in force 31 May 2021)
- GOV.UK (MoJ) — Whiplash tariff guidance (5 Aug 2025) and implementation date
- GOV.UK — Statutory review of the whiplash tariff (call for evidence)
- ABI — Fraudulent insurance claims continue to top £1bn (17 Nov 2025; 2024 detected fraud)
- Insurance Business UK — Motor fraud breakdown (51,700 motor scams; £576m) referencing ABI data
- ABI — Graduated Driver Licensing explainer
- GOV.UK — Consultation: introducing a minimum learning period for learner drivers (Jan 2026)
- NI Department for Infrastructure — GDL to be introduced 1 Oct 2026 (Jan 2026)
VanCompare Editorial Team
The VanCompare Editorial Team produces clear, practical guidance on UK van insurance and related topics. We work with FCA authorised insurance providers and use insurer information where relevant to explain cover in plain English and help drivers make informed decisions.
Where relevant, our content is checked against publicly available UK guidance and information from sources such as the FCA and GOV.UK to help keep it accurate and up to date.
This content is for general information only and is not financial advice.
