According to The Van Insurer, 89% of van drivers could be charged more than £5,000 to drive in London from 2021.
Sadiq Khan, Mayor of London, revealed plans last month to expand the capital’s ultra-low emission zone (ULEZ) to include the North Circular and South Circular roads from 2021.
Drivers within the expanded zone using vans that don’t meet the new emission standards will pay a daily ULEZ charge of £12.50, 24 hours a day, 365 days a year. This is in addition to the daily congestion charge, which starts from £10.00 per day.
‘Non-compliant’ vehicles include diesel vans that do not meet Euro 6 standards; those that are approximately six years or older in 2021, and petrol vans that do not meet Euro 4 standards, roughly the equivalent to being fifteen years or older in 2021.
Last year, The Van Insurer processed quotes for 24,093 van drivers in London and the South East; 89% (21,415) of the policies quoted for were for non-compliant petrol and diesel models. Diesel vans that will be deemed non-compliant under the new rules, made up 87% of the policies quoted, with non compliant petrol vans accounting for the remaining 2%.
The average non-compliant van driver, with 21 days holiday per year and working 239 days in London, can expect to pay £5,377.50 per year to drive in the capital, according to the research.
Jade Isabelle, Commercial Director at The Van Insurer, said: “For our tradespeople customers, their van is an essential tool for their business and the majority clearly fall outside the new compliance standards.
“However, while many of our quotes are for older vehicles, we’re processing more quotes for compliant vehicles. Between 2016 and 2018, we noticed an increase of 8% in the London and South East, so drivers are getting the message and looking to reduce costs.”