Insurance hike in 1994
Page 10
If you've noticed an error in this article please click here to report it so we can fix it.
by Grant Prior • Insurance firms will increase their premiums for hauliers by up to 20% in the New Year. The jump follows steep rises in the number and cost of claims.
Eagle Star is announcing its increases in January following a 20% hike earlier this year. Commercial vehicles head Roger Thrift says: "It is likely premiums will be increased in line with last year's figure," Commercial Union will up its rates in January followed by Norwich Union and General Accident in the spring. Soaring premiums are being blamed on changes to the way claims are handled. The traditional "knock-for-knock" system, where insurers bear the cost of repairing vehicles they insure, is disappearing.
Norwich Union says: "It used to be when a truck hit a car, the car was damaged more and the commercial vehicle insurer got off relatively lightly. That is not the case any more."
The brunt of the premium rises will be borne by truckers with third-party fire and theft cover who used to benefit most from the knock-for-knock scheme.
Insurance rates for large fleet operators will continue to be assessed on an individual basis based on their claims records.
Small hauliers are livid about the rises. Essex based Mann-Trans director Derek Davis says; "This is another blow below the belt. "I've just renewed my policy for 13 trucks and it's gone up from £18,500 to £22,000. Enough is enough,"