The 2012 Van Insurance Conundrum – 1

If you were a commercial vehicle insurance provider, how would you interpret the latest UK car-sales figures when trying to apply some sort of logic to calculate next year’s business vehicle insurance premiums?

There is a hint of an underlying trend emerging in the Society of Motor Manufacturers and Traders’ (SMMT) latest figures, but with so many other instances occurring that will affect UK drivers from the outset in 2012 – none of which those of us looking for cheap van insurance nor those seeking to provide it can control – what surprises are we going to find when it’s our turn to renew our van insurance next year?

Firstly, let’s take a look at the figures themselves, based on car sales, year on year, January to November. The domestic market has seen disappointing returns; no 16% is quite a slump – not just a disappointment, but a substantial let-down. Given the doom and gloom of the double-dip recession we seem to be talking ourselves into globally, that’s not so much of a surprise. However, actual vehicle sales were up 5,000 units on the target figure, thanks largely to fresh investment in new vehicles from the private sector. That’s a good sign for the economy, and business in general, but the subsequent result may kick any lingering hope of next year’s van insurance being as cheap as this term’s right into touch.

Where van insurance providers are going to get a mixed message from these results is in the fact that sales overall only dropped by 4.5%, due to a sizeable hike in sales – 8% – in the commercial, or fleet, sector. And that really is the mark of confidence that will interest the commercial vehicle insurance bigwigs as they start calculating targets and realistic budgets for 2012. All of this will have an impact on your van insurance renewal quote when the time comes around, next year.

In addition to the uncertainty of future sales figures, there is London (anyone north of Watford has just turned off – wake up; I know you’re sick of hearing it, but what happens in the capital does have a knock-on effect nationwide due to the pure concentration of the marketplace, there).

Two things could possibly happen as a result of the LEZ – London Low Emission Zone – which comes into effect 3rd January. At £100/day for non-conformists, the sum raised should be enough to pay for the Olympic stadia over and over again. Read on for further possible implications of the LEZ on van insurance […]