Van Insurance Premiums Fall Further; Now Down -14% Y-o-Y and -25% Below Peak

Van insurance premiums continued their sustained downward trajectory in early 2026, falling by -2.3% over the three months to the end of February, according to the Pearson Ham Group’s Market Pricing Business (acquired by Defaqto, Jan 2026) latest Quarterly Van Insurance Price Index.

The March 2026 Index shows that average Top-5 quoted prices have now declined by -6.7% over the past six months and are almost -14% lower than a year ago. Since the market peak in October 2024, van premiums have reduced by around -25%, marking a significant correction in rates over the past 16 months.

Despite a flat December, competitive intensity persisted into the New Year, with prices continuing to edge down in January and February. The result is a consistent easing cycle that has now been in place since mid-2024.

Beneath the headline averages, competitive strategies continue to diverge sharply. Over the past 12 months, year-on-year pricing changes across major providers range from around -7% to as much as -34%.

While most insurers have reduced rates, one provider has recorded back-to-back monthly increases in the last two months, highlighting that the market is far from uniform in its response to current trading conditions.

This dispersion underscores how differently insurers are positioning themselves. Some continue to pursue volume through assertive rate cuts, while others appear to be moderating their approach as margins stabilise.

“We are now well into a sustained softening phase in the van insurance cycle. A cumulative reduction of around 25% since October 2024 is not a marginal adjustment. It represents a fundamental repricing of the market.

“What is particularly striking is the level of divergence beneath the average. Some insurers have cut deeply, with year-on-year movements exceeding 30%, while others are retrenching or even nudging rates back up. That spread tells us this is no longer simply about following the market down; it is about strategic positioning and targeted growth.

Segment analysis also reveals variation. Year-on-year reductions by driver age range between approximately -13% and -17%.

Drivers aged Under 26 have seen the largest reductions, at roughly -17%, while those aged 61-70 have experienced smaller, though still material, decreases of around -13%.

This suggests that competitive pressure remains most pronounced in segments historically associated with higher premiums, with insurers continuing to recalibrate risk-adjusted pricing across age bands.

When viewed against the wider motor market, the van segment has softened more rapidly over the past year. The 12-month index comparison shows van premiums declining at a steeper rate than private motor.

“The headline -14% year-on-year movement only tells part of the story. When we break the data down, we see meaningful differences by driver age. Younger drivers have seen the largest year-on-year falls, while older cohorts have experienced more moderate reductions. At the same time, one provider has recorded consecutive monthly increases, showing that pricing momentum is beginning to fragment.

“This is where granular, continuous tracking is critical. Insurers and brokers need to understand not just that the market is falling, but how quickly, where, and for whom. The ability to interpret these nuances will shape underwriting performance over the next 12 to 18 months.”

With van premiums now materially below both last year’s levels and the October 2024 peak, the market appears to be moving into a more mature phase of the softening cycle. The pace of reductions has moderated but competitive pressure remains evident, particularly relative to private motor. For insurers, the challenge now is balancing growth ambitions with underwriting discipline in an environment where headline averages mask significant underlying variation.