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Last updated: 19 March 2026

Van insurance felt relentlessly expensive for a long stretch — but the latest market data suggests some relief. Quoted van insurance premiums fell 8.9% year-on-year to the end of November 2025, with a further 3.0% drop over the final three months, as insurers competed more aggressively for business.

That doesn’t mean cover is “cheap”. Repair and theft costs still put pressure on motor insurance overall. The ABI reported motor insurers paid out £11.9bn in claims in 2025, driven largely by the cost of repairing increasingly complex vehicles, even while average premiums were lower year-on-year.

What the latest van insurance index shows

Consumer Intelligence’s latest update highlights a broad-based easing across segments:

• Under-25s and 25–49s saw the steepest annual falls (around 9–10%), with over-50s also down year-on-year.
• In November 2025, the most common quoted premium bands were £500–£749 and £750–£999 (based on their quotes dataset).

Important caveat: these are quoted prices (not necessarily what everyone pays), and your own premium will depend on your van, postcode, mileage, driving history and how you use the vehicle.

The biggest “cost lever”: getting the right type of cover for how you use the van

A common reason people overpay (or end up underinsured) is selecting the wrong usage class. When you get quotes, be clear whether you need:

• Social, Domestic & Pleasure (SDP) only
• Carriage of Own Goods (typical trades use — carrying your own tools/materials)
• Hire & Reward (carrying goods for payment, e.g., courier work)

If you pick the wrong one, you can end up with the wrong protection at claim time — or pay more than necessary.

Practical ways to bring your premium down without cutting corners

These steps won’t suit everyone, but they’re the most common levers that can help:

• Increase security: alarms/immobilisers, steering locks, secure overnight parking, and tool security (some insurers ask about this).
• Choose your excess carefully: a higher voluntary excess can reduce premiums, but only set it at a level you could actually afford after an incident.
• Be realistic on mileage: don’t overstate annual mileage “to be safe” if you’re nowhere near it.
• Name drivers correctly: adding an experienced driver can help in some cases; fronting can cause serious problems — be accurate.
• Avoid unnecessary add-ons: only include extras you genuinely need (breakdown, legal expenses, replacement vehicle, etc.).
• Compare renewal vs new quotes: pricing can vary between providers and month to month, so it’s worth checking the market rather than auto-renewing.

Why prices can still feel high even when indexes fall

Even as premiums ease, claim costs remain elevated. The ABI has repeatedly pointed to high repair costs (parts, labour, technology, and longer repair times) as major drivers of motor claims costs.

That’s one reason shopping around and tightening up your risk details (security, accurate usage, correct mileage) still matters.

Sources

1. Consumer Intelligence — “Van Insurance Premiums Fall 8.9% As Market Deflation Accelerates” (18 Dec 2025): View source
2. ABI — “£11.9 billion paid out in 2025 to support motorists across 2.5 million claims” (11 Feb 2026): View source
3. ABI — “Three straight quarters of falling motor premiums” (12 Nov 2025): View source