Commercial vehicles insurance premiums drop
Finally there is some good news for SMEs who have seen overheads rise and continue to rise over the past few years. Insurance premiums for commercial vehicles have reduced by up to 10% during the first quarter of this year.
The biggest drop in such premiums for the past five years leads to a 6% overall reduction in the cost of general insurance, which also includes business insurance for SMEs.
These figures, issued by BIBA (British Insurance Brokers’ Association), are based on the Acturis Insurance Price Index that tracks actual insurance premiums paid annually via brokers, adding up to £5 billion since 2010. The reductions are primarily being driven by insurance brokers such as Asprey Harris accessing competitive markets for commercial vehicle policies and reforms to motor insurance that have reduced the cost of third party claims.
Graeme Trudgill, BIBA’s Executive Director, said: “This is positive news for the white van man and small businesses generally. Brokers are working really hard for customers which has led to increased competition. Brokers have also capitalised on the reforms to motor insurance that have occurred during recent years such as the 40% reduction to uninsured driving and the legal changes to reduce the impact of personal injury referral fees.
“Small businesses can find it difficult and time consuming to find the right cover, but brokers know the market well and are able to work on behalf of customers to get the right cover at the best price.”