Van Insurance Premiums Fall 4.4% in Q3 2025, Down 19% Year-on-Year

Pearson Ham Group’s Van Insurance Price Index shows that prices are now -7.6% lower than six months ago and -19% down compared to the same period last year. This steady downward trajectory, ongoing since mid-2024, amounts to nearly a -26% reduction in van premiums from the market’s peak during that period.

The sustained decline in premiums has not been uniform across the market. Pearson Ham’s analysis highlights significant divergence in pricing strategies among insurers, as leading providers responded very differently to the competitive pressure.

In the latest quarter, changes in average premiums by major van insurers ranged from a modest -6% to a steep -33%. While some insurers barely trimmed their rates, others slashed prices by almost one-third in just three months, a remarkable spread that underscores varying business tactics.

“A year and a half of sustained easing has reshaped the competitive landscape in van insurance. Prices have fallen month after month since June 2024, but this overall trend is far from uniform. Some carriers are pushing rate reductions aggressively, while others are holding back. That divergence is now a defining feature of the market and explains why individual insurers’ performance often deviates from the industry average.”

The downturn in premiums is broad-based, with virtually every demographic and usage segment seeing relief in costs. Geographically, all regions experienced significant annual premium decreases, with relatively minimal variation across the country. The North East saw the smallest year-on-year drop, about -17% lower premiums, whereas London recorded the largest fall at -21% down year-on-year.

Driver age has also influenced the scale of the decline. Younger van drivers have enjoyed the biggest savings – those under 26 years old saw average premiums tumble by roughly -22% compared to last year, the sharpest fall among age groups. In contrast, older drivers benefited from smaller reductions; for example, policies for drivers aged 61 to 70 dropped by around -16% year-on-year.

Across different vehicle usage categories, the trend remains consistently downward. Whether vans are used for business (carriage of own goods), for haulage, or for social and commuting purposes, premiums fell by approximately -15% to -20% over the past year.

Notably, the haulage segment (a relatively small portion of the van market) experienced one of the smaller annual declines and even saw a slight uptick in prices during November, bucking the overall downward trend in that single month.

Meanwhile, annual mileage had little effect on the scale of premium reductions. The Index reveals that vans across all mileage bands saw very similar price movements, with year-on-year decreases generally between -18% and -20%.

“Our tracker gives insurers and brokers a daily, granular view across driver age, region, usage and product tier. We’re seeing notably consistent year-on-year reductions across mileage bands, smaller cuts for haulage, and the sharpest falls among younger drivers. This level of segmentation helps market participants understand where pricing is moving and why, so they can respond with precision.”