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  • Van insurance premium split

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  • van insurance premium split

    How the amount you pay is divided

    Trying to understand why your van insurance premium costs what it costs can be confusing - especially when it goes up and down. It's important to us that you know where your money is going. So we've broken it down to make it as simple and clear as possible.


    Claims - 59.3%

    Naturally, you'd expect the biggest chunk of your premium to go on paying out on claims - and you'd be exactly right. On average, 59% of all van premiums go into paying claims. That's the single reason you buy insurance at the end of the day. So we put paying claims at the heart of what we do.

    van claims 59.3%

    Profit - 4.3%

    To exist, every business needs to make a profit, of course - and we're no different. But the profit we make might be less than you'd think. The average van insurance premium delivers just 4% of profit. That profit means we can keep on protecting you and your van, year after year.

    van profit 4.3%

    Insurance Premium Tax - 10.9%

    You might not know this, but the Government adds tax to your insurance premium. It's called Insurance Premium Tax, or IPT for short. Unfortunately, we have no control over this part of your premuim. But we do work hard to persuade the Government that 10% is enough to tax you on your premuim.

    van insurance premium tax 10.9%

    Expenses (inc commission) - 19.3%

    Every business needs to pay to 'keep the lights on', of course. That's why around 19% of your premium goes towards our employees' salaries and the cost of our offices. But we also invest it in the most innovative technologies to make your experience with us as smooth and simple as possible.

    van expenses 19.3%

    Reinsurance/Industry Levies - 6.3%

    Like all insurers, we pay into various industry funds that have been set up to protect you. For instance, the Financial Services Compensation Scheme. It protects you against an insurer going bust. On average, we pay in around 6% of all van premiums to these industry funds to keep you safe.

    van Reinsurance/Industry levies 6.3%

    *Calculations based on 2015, 2016 AXA van Insurance Policies. *IPT is 12% on top of your premium but it makes up 10.7% of the overall cost to you. Percentages rounded to the nearest whole number.


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