Van drivers ‘facing premium hikes’ in constricted market

Insurance broker warns of ‘impending chaos’ in market following Setanta liquidation

Broker insuremyvan.ie suggest insurers offer a nine or 15 month policy to get some drivers off the same date

Broker insuremyvan.ie suggest insurers offer a nine or 15 month policy to get some drivers off the same date

 

About 60,000 van drivers who held policies with the now defunct Setanta Insurance face premium increases in a constricted market as they share a common renewal date, according to insuremyvan.ie.

The insurance broker warned of “impending chaos” in the industry for van drivers as approximately 25-30 per cent of drivers who use their vehicles for commercial use were insured with Setanta Insurance.

“As a result of Setanta’s sudden liquidation last year, all of these policy holders now have the same renewal date of April 17th,” said insuremyvan.ie managing director Jonathan Hehir.

“With insurers having all increased prices fairly substantially, it’s really tough for van drivers to access cost-effective policies,” he said.

“Setanta under-priced policies – hence their demise – but now because all other insurers charge more, and most have actually increased their rates even further recently, the market has really constricted in terms of price and van drivers are looking at serious increases in premiums.”

He suggested that insurers offer a nine or 15 month policy to get some drivers off the same date but added: “We have had little joy so far.

“What is more because everyone is looking to renew at the same time van drivers who choose to organise the insurance themselves have the unenviable task of ringing around seven or eight different insurers – joining phone queues with pretty long wait times.”