Insurance for Vans – More Expensive?
All UK fleet companies and individuals with used vans that are renewing their motor insurance policies in the third quarter of the year could face an increase in premiums. Currently some ninety-one percent of underwriters are predicting a rise in amounts of insurance premiums for vans and trucks. This seems to be in stark contrast to predictions for the second quarter of the year in which virtually every underwriter stated that there should be no change in rates for this type of cover for vans and HGVs. This, however, no longer seems to be the case. As the economic downturn has worsened recently in the United Kingdom, fleet companies have cut back on their vans and other vehicles by spending less on insurance, among others, and therefore pushing up rates in order for insurers to remain profitable or stay afloat. This dramatic change in forecasts for motor insurance in the case of vans and trucks is symptomatic of a ‘hardening’ market when insurers are willing to drive up premiums. These rises are intended to continue for at least the rest of 2009 with a view to returning the market to profitability and prevent even more significant increases in 2010. Despite the pessimistic predictions, new entrants to the market as well as the desire to retain market share in the segment of vans and HGVs means that overall rate rises are predicted to be modest.