Van owners insurance is more expensive than it should be due to leaving it too late.
One in two van owners miss out, on average, £265 ($343) of savings on insurance.
Van insurance overpayment
According to Confused.com, 55% of van drivers buy their car insurance 48 hours or less before their renewal date. Furthermore, 26% are shopping for insurance on the last day. On average, this can cost them over £1,000.
However, if bought around three weeks prior, there can be savings upwards of £200. According to the comparison site’s data, the best day to buy insurance is 22 days ahead of renewal. Van owners insurance could in fact be £265, or 32%, cheaper if planned correctly.
This is more common in van owners insurance than in car insurance. Only 38% of car drivers shop within the last 48 hours before their renewal date and 40% leave it to the last day.
Amanda Stretton, motoring editor at Confused.com, said: “A worrying number of van owners are leaving buying their insurance to the last minute – a mistake that is costing them upwards of £200, on average. According to our data, van owners should consider shopping for insurance around three weeks before their renewal date in order to optimise savings.”
Why is van owners insurance renewed so late?
However, the main question is why are van owners leaving it so late? Is it a lack of awareness, stressful lifestyle or lack of time? This is also during a time where more consumers are using price comparison websites.
Speaking to LII, Stretton, added: “Worryingly, so many van drivers are leaving buying their insurance to the last minute, which is a very costly habit. While everyone will have their own reasons for this, it could be down to the fact they do not know the value of shopping around earlier, and how this could in fact save them hundreds of pounds. And this is why we encourage van drivers to shop around for their insurance around three-weeks before their renewal date in order to make the biggest savings.”
This is coming at a time where motorists in the UK are currently paying on an average £53, or 6%, less for car insurance compared to a year ago.
Car insurance premiums in the UK currently cost £774, versus £827 in the same period last year.
Inner London recorded the biggest annual average premium reduction. In this region, the average premium dropped 9% to £1169 from £1283.
Just one in five customers believe that their insurance firm recognised and rewarded their loyalty, a new research from customer benefits and loyalty firm Collinson has revealed.
Only one in five (19%) respondent said they felt valued by their insurer while more than 35% complained that they received offers or loyalty schemes which are of no use for them.
Nearly 34% of the respondents said they received a volley of useless communications from their insurers while 31% said that they were sent totally un-personalised communications.