London Van Drivers Pay More for Insurance
A new study has looked at how the cost of van insurance varies around the country.
A new study into the varying costs of insuring a van around the country has shown that there is an unsurprising spike in the amount LCV owners can expect to pay if they live in the capital.
Business Vans reports that East London in particular is the most expensive region of the UK for insurance, with the average cost of coverage per year hitting almost £1,971 in 2016. This is according to figures collated by The Van Insurer. They show that some serious savings are being made by those in parts of the UK that are a little more out of the way.
The Insurance Lottery
Big cities tend to invite insurance price rises for vans, with Liverpool being the first location outside of the south to appear on the list with its average annual premium price of £1,469. Manchester is a little cheaper, with an average of £1,300, but even this is a far cry from the most affordable end of the van insurance spectrum.
In terms of inexpensive LCV insurance, it is the Isle of Man that wins out over anywhere else in Britain, with typical costs sitting at just over £360 a year; this is a fraction of what many drivers and fleet operators on the mainland can expect to pay.
A similar story is true of Jersey, where insurance costs just £436 on average. Other remote isolated places like the Outer Hebrides are represented in the ten cheapest places to insure a van, although outliers like Exeter are also present, showing that it is possible to save money in urban centres as long as they are somewhat compact rather than sprawling like the capital.
This like-for-like comparison of insurance paints an interesting and accurate picture of one of the key costs associated with van ownership. And there are a number of factors at play in determining the cost of insurance aside from the merely geographical.
Compact is Cheaper
Report spokesperson David Hort explained that although drivers would face an insurance cost lottery based on where they live and where the van is registered, this expense can be tempered over time thanks to the impact of no-claims bonuses that most insurers offer. For those who are just beginning their careers, age can be another mitigating factor, although it's one about which little can be done.
England and Northern Ireland are typically the most expensive places to procure cover, while Scotland has the cheapest average cost of £610 per year. Wales is sandwiched in the middle, with premiums sitting at £729.
The type of van being insured will have a big impact on insurance costs, with smaller, more compact models being a cheaper option, while large powerful LCVs are more expensive to protect. The age of the van itself is less relevant, but saving money by buying a used LCV to take into account the cost of insurance may be a good idea, especially in the case of younger drivers, who are facing the steepest premiums at the moment.