The cost of van insurance for under 25s has dropped by 16.9% in the last year, according to Consumer Intelligence, a data-gathering insight provider for financial services companies.

Young van drivers and those who employ them are still spending an average of £2,762 per policy, but 2020/21 has seen premium prices falling.

Typically a young van driver will pay three and a half times as much for their van insurance than 25 to 49-year-olds but the last year has, uncharacteristically, seen a drop in prices.

Older drivers' van insurance has gone up

Conversely, van drivers aged 25 to 49 and over 50 have seen the cost of their van insurance increase by 2.3% and 2% respectively.

This has meant a modest reduction of 0.6% in the average price of van insurance which now stands at £985 per policy.

SDP or business use? – It makes a difference

Business users are paying an average of £1,002 for their van insurance while those who drive a van on a Social, Domestics and Pleasure only policy (SDP) pay an average of £936.

Over the last 12 months, business users have seen prices rise by 0.7% while the price of SDP policies increased by 4.5%.

But, don't be tempted to buy an SDP policy if you will be using your van for business purposes. If you are involved in an accident while out working, your SDP cover might be invalidated and your insurance company may refuse to pay out.

The COVID effect on van users

It is still a little unclear what effect the coronavirus pandemic has had on the van insurance market.

Many firms had to change their business models with the closing of retail and restaurant premises, and the number of individuals and businesses who started home delivery services grew rapidly as the lockdowns stopped us going out to shops and restaurants.

In February 2021, iVan reported on SMMT figures which showed that the number of new van registrations was fluctuating according to size and type but that a surge in the market for second-hand vans had occurred.

Auctioneers said that the uncertainty of the pandemic had meant that tradespeople and SMEs were delaying buying new vans because of concerns about financing deals in the future.

Get the best van insurance policy with iVan

Whether you choose to buy or lease a new van, or whether you go for new or second hand, one thing remains the same about your van insurance, it pays to shop around.

Talk to the specialists about getting the best van insurance policy for your needs, whether you need any driver van insurance, young driver van insurance or you are just trying to find the cheapest van insurance deal that's available, contact iVan today.