Van insurance drivers who have had to pay out to repair damage to their vehicles caused by badly maintained roads may be happy to learn of a recent government announcement.

Earlier this week, the Department for Transport revealed it had set aside around £66 million for local councils to invest in making life easier for van drivers.

Transport minister Paul Clerk said the money will be spent on improvements such as resurfacing, bridge maintenance, street lighting and flood protection.

Mr Clark added: “High quality local road networks are vital to communities - connecting people with work, shops, services, families and friends.”

Councils are scheduled to receive the first £32 million in April and the rest is due to be handed over in the same month next year.

This new money means that hopefully there will be a reduction in claims, thus creating cheaper van insurance rates.

Commercial van insurance news also positive

Meanwhile, many banks and firms have suffered huge losses due to the credit crunch, but one insurer is a lot more optimistic.

Lloyds of London is arguably the largest and most prestigious insurance institution in the world and is confident in its van insurance sector.

Whilst it is generally accepted that the number of vehicles requiring road risk insurance cover will drop in 2009, as already shown by falling new vehicle sales and reduced business output across the commercial spectrum, it is anticipated that van insurance premiums will increase substantially in the forthcoming months.

Therefore, not only are road risk premiums set to increase, but also there is predicted to be a rise in excess of 10% in the premiums for most commercial risks.

This possibility is proving to be very popular for private equity firms, and other investors, who are funding their returns retreating in other financial divisions. A hardening insurance market is always good news for investors, and provides the extra underwriting capital required for expansion.

Lloyds syndicates are experiencing a revival of interest and corporate investment. Overseas investment is also being encouraged as a result of the weak pound which is an extra bonus for foreign investors.

It is widely believed within Lloyds that a hike in premium rates combined with the dollar strengthening against the pound will lead to more capacity for the organisation in both 2009 and 2010.

A spokesman for Staveley Head Limited, who have several truck insurance and van insurance schemes underwritten by Lloyd's syndicates, said: “This is good news all round for both Lloyd's of London and the commercial vehicle insurance market as a whole. 2009 should see rates harden, and insurers return to an underwriting profit.”