The insurance group, Allianz, which provides van insurance, has stated that fraudulent claims made from van insurance policies have caused the cost of the premiums to increase.

Andrew Torrance, chief executive officer for Allianz, stated that the credit crunch is to blame for the increase as businesses work to try and find ways to find money from any available source.

He also warned that of these trends were to continue, the end of cheap van insurance could be drawing upon drivers, as if one insurance firm raises their insurance premiums, others are likely to do the same and raise their prices signalling even tougher times for van drivers.

Another factor in the pricing strategy involves the amount of competition a firm received from online aggregators. Insurance firms are said to make their profits from the renewals, of policy holders returning in the second and third year, however with convenience of comparison websites, van drivers are found to be making fewer renewals with their current van insurance provider.