Van insurance premiums for London tradesmen have surged to nearly twice the national average, with new data showing 2025 costs topping £1,139.81 per year in the capital, compared to £575.05 across the rest of the UK (Quotezone).
For self-employed drivers working in plumbing, carpentry, mechanics, or delivery, van insurance is now one of the most expensive overheads — particularly in London, where theft rates, traffic congestion and limited secure parking inflate risk profiles.
Younger tradesmen are especially affected. Those aged 17–24 now pay an average of £2,020.34 annually for van insurance in London, pricing some out of work entirely. Sten Saar CEO of Zego stated:
“Premiums are punishing the very people who keep the city running — the carpenters, electricians, mechanics,” said a commercial insurance expert. “The cost of staying on the road is becoming unsustainable for many.”
Electric Vans: Cleaner to Drive, Costlier to Insure
A major cost driver is the rising number of electric vans on London’s roads, spurred on by ULEZ expansion and green grant schemes. Yet these vehicles come with steeper insurance costs:
- Electric van insurance (2025): £1,040.56
- Diesel van insurance (2025): £753.39
- Difference: £287.17 (≈38%)
The higher premiums stem from more expensive repairs, longer parts wait times and fewer specialist garages — an issue The Guardian has previously linked to inflated EV claim costs of up to 25% more than diesel counterparts.
Mechanics Pay the Most
New data from London Business News and Vanarama shows that mechanics face the highest van insurance costs among trades:
| TradeElectric VanDiesel Van | ||
| Mechanics (highest) | £1,159.91 | £837.28 |
| Builders, Plumbers | £1,004.29 | £722.77 |
Insurers cite risk of theft (due to tools and parts in the vehicle), frequent short stops, and high mileage as justification for the higher rates.
Top 5 Van Insurance Providers for Tradesmen in 2025
For tradesmen seeking better value, some providers stand out for offering flexible, commercial-specific cover. Here are the five best van insurance companies for self-employed drivers in 2025:
1. Direct Line for Business
Well-established and reliable, with tailored policies for sole traders and SMEs.
✔ Named driver discounts
✔ Strong claims reputation
✔ Ideal for established trades with multiple vans
2. Admiral Van
Offers generous multi-vehicle discounts and flexible cover options.
✔ Good for dual van/car use
✔ Fast online quotes
✔ Great for families or small fleets
3. Zego
A newer, tech-driven provider built for commercial drivers.
✔ Designed for self-employed tradespeople
✔ Transparent pricing with no broker fees
✔ Includes Zego Sense – a telematics app that rewards safe drivers with cheaper renewals
✔ Great for younger drivers or those looking to prove they’re low risk
Zego earns its place on the list by combining smart pricing with tools that actively help drivers lower future costs. Its Sense app gives tradesmen the chance to take control of their premiums — and for many in London, that’s a game-changer.
4. AXA
Strong option for those with valuable tools or needing extra protection.
✔ Tool cover and legal assistance
✔ UK-based customer support
✔ Customisable add-ons
5. Churchill
Simple, no-frills cover with competitive base rates.
✔ Trusted brand
✔ Good for lower-risk trades
✔ Straightforward claims and renewal process
Why London Tradesmen Pay More
- Urban Crime: London has some of the UK’s highest van theft and break-in rates.
- Traffic Congestion: Stop-start driving and narrow roads mean higher accident risk.
- Commercial Use: Vans used to transport tools or materials are classed as high risk.
- Lack of Secure Parking: Few garages or off-street options, especially for younger workers in flats.
Ways to Reduce Van Insurance Premiums in London
Even with prices rising, tradesmen can take steps to reduce what they pay:
Use Telematics
Smart insurance options like Zego’s Sense or Admiral’s LittleBox track your driving — braking, speed, cornering — and reward careful driving with lower renewals.
Compare Quotes
Sites like Quotezone and GoCompare can save drivers up to £590 by finding lesser-known providers.
Pay Annually
Monthly payments come with added interest. Paying upfront can reduce your overall cost by up to 20%.
Park Securely
Even off-street parking or CCTV-monitored spaces reduce theft risk and lower your risk profile.
Choose Your Van Wisely
Lower-insurance-group vans, like the Vauxhall Vivaro or Ford Transit Courier, are significantly cheaper to insure than larger or modified models.
Conclusion: Insurance Is Now a Barrier to Entry
For many London tradesmen , especially those just starting out van insurance is fast becoming one of their biggest costs of doing business. With premiums pushing past £1,000, and some topping £2,000, there’s a growing concern the city may become unaffordable for the very workers it depends on
“London can’t function without its tradesmen. But unless something changes, fewer young people will be able to afford to become one.”