Fleet operators face huge premium hikes
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• by Melanie Hammond Insurance premiums for haulage fleets are rocketing as fewer insurance companies are issuing quotes and those that do are building in provisions for personal injury claims and medical treatment costs.
Barrie Booth of Boltonbased bulk haulier James Booth says the cheapest quote his insurance broker can find this year is £67,000 with Summit Motors of Lloyds—up 70% on last year's premium of £39,000.
Booth's renewal premium is subject to an increase while a third party settles a claim. The company's insurance broker, Frank Smith of J Standring & Son, confirms that the quote is unusually high. But he warns: "On average we are seeing motor fleet insurance costs rising by around 25%."
According to Smith, this is partly due to lack of competition: 'With many major players merging, there are fewer companies available to quote. Two years ago, I would have had 1415 firms willing to quote for motor fleet insurance. Today ft's more like five, of which only one or two are prepared to look at it seriously."
Other factors driving up insurance premiums include a surge in "American-style" personal injury claims in the UK and new legislation which dictates that the NHS can approach the insurers of the negligent party for medical treatment costs.
A spokesman for Summit Motors says: The motor fleet insurance market has been suffering losses for the past two years and we have had no alternative but to increase the premiums."
Booth says: "We are already struggling with the cost of diesel and this is yet another blow."