The BVRLA has formed an insurance taskforce to tackle the crisis which has developed as the costs associated with motor accident claims and related motor insurance costs reach unsustainable levels.
The increasing cost of compulsory motor insurance currently creates the greatest risk for the profitability and sustainability of our industry and the vehicle rental industry is calling on the Government to take urgent, decisive action that will bring relief in the short and long term. These increase costs, which according to our research show that the average cost of motor insurance has more than doubled for the vehicle rental sector in the last four years is hampering the sectors ability to provide an efficient low cost mobility solution.
The UK’s motor insurance crisis has taken time to unravel, with opportunities for exploitation of the current system by claimants, service providers, and even motor insurers producing multiple symptoms and contributing to a new lexicon; claims management companies, compensation culture, crash for cash, referral fee income, etc.
The BVRLA has called for the Government to introduce a number of measures which will help reverse this upward trend and mitigate these disproportionate costs which unlike the insurance sector the vehicle rental sector simply has to absorb.
Short term objectives
- Increase the usage of the BVRLA RISC database so the whole industry is alerted to high risk customers.
- Lobby Government to introduce a threshold for personal injury claims resulting from road traffic accidents that requires;
- objective evidence of injury documented by an independent medical practitioner, and that the injury is not predominantly:
i. a sprain,
ii. a strain, or
iii. a whiplash associated disorder injury, and
- the injury would entitle the claimant to recover damages of greater than 2.5% of the Judicial Studies Guidelines amount for the most serious personal injury, unless a permanent and serious impairment has been sustained.
Long term objectives
The BVRLA is lobbying Government to introduce regulation requiring all UK motor insurers to provide coverage within the mandatory third party motor insurance policy for the rental of a similar substitute motor vehicle in the event the insured’s vehicle is unavailable due to accidental damage caused by a third party.
BVRLA Guide to Insurance Risk Management
The BVRLA has produced a Guide to Insurance Risk Management which aims to help equip BVRLA members with vital business information, which ranges from being able to identify potential fraudsters through to taking necessary actions to reduce the risk of renting to someone who may be involved in fraudulent activity or even staged accidents.
It also aims to help members demonstrate to motor insurance companies the positive steps they are taking to ensure the risk posed is a low one and why this should be reflected in their premiums. The guide can be accessed here.