The road ahead for VW insurance
It’s no secret that the insurance market has been tough the last few months. If you’ve renewed a car, home or van policy lately, you may have been shocked at the quoted price. And if you’re approaching your renewal date, you might be anxiously waiting, wondering just how much it will cost you this time round.
It’s been no different in the world of Volkswagen Campers. Since 2012, the Howden Thatcham Schemes team has been embedded in this community, proudly supporting VW shows of all sizes, and helping clients find great value on their camper cover. The team have worked tirelessly to weather the current storm, and find solutions for our clients.
The good news that we can share is that we’re seeing the green shoots of change emerging; and we want to show you what there is to look forward to, as we enter the prime time for V-Dub travelling.
Why are campervan premiums more expensive?
The headline from the insurance industry in the last few months is how inflation has driven up premiums. But let’s break down what that actually means.
Between 1st October and 31st December 2023, the average motor insurance premium was £627, up by 12% on the previous quarter, and up 34% on the same time in 2022. Payouts for vehicle thefts rose by 35%, longer repair times drove up the cost of replacement vehicles by 47%, and the cost of replacing written-off vehicles has increased as new car costs rise, all compared to the equivalent period in 2022.
However, the largest single factor is repair costs, which jumped 32% in the last months of 2023, to £1.6b of the total £2.54b. This reflects a mixture of cost of labour, energy and also the fact that vehicles are becoming more sophisticated, with the likes of electric vehicles requiring ever more specialist expertise to repair.
The end result is that insurers are paying out more on claims and costs than they’re collecting in premiums. For last year, insurers will have paid out £1.14 in claims and operating costs for every £1 received in premiums. As a VDub owner, your premium may have risen to reflect the inflationary pressures affecting the entire insurance market.
Where are we now?
Essentially, these cost pressures created a perfect storm of inflation, market turbulence, and more limited capacity. But our specialist team has been striving to find better options for our clients.
As a broker, one of our main strengths is our relationships with insurers; finding solutions that work for them, but that also mean we can provide the best to clients. We always work hard to nurture these, and during this period in particular, we’ve worked incredibly hard to bring a wider variety of schemes to the table, to help you find quotes at more competitive rates.
And through out this time, our presence at camper events has never wavered. We’ve relished speaking with the Camper clan at events such as Campermart, VW Festival, and Run the Ring, and have many more booked in the coming months.
So, as we continue to monitor the market, we can see positive signs that things are starting to improve as the storm begins to settle.
Save on your insurance, not on the service
Our mission is to empower people and work with providers that they know will go the extra mile – as standard. After all, you deserve more when you’re spending your hard-earned money.
Being a specialist broker doesn’t mean we come with a hefty price tag. All it means is that we have the expertise to cover your niche, whatever it may be, and we use put our knowledge into action to help you.
And if you did have to claim, or need any support throughout your policy duration, the team are there when you need them, making the process as smooth as possible and advocating for the best possible outcome for you. In these scenarios, having someone by your side is worth its weight in gold.
So, if you are looking for van cover that offers great value for money, give our friendly team a ring or visit your local branch.
