Insurance leaps
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• Insurance premiums for commercial vehicles are being increased by up to 25%, and there are indications that further increases are on the cards before the end of the year.
The Association of British Insurers says that the insurance companies lost a record 2367 million on motor insurance policies last year, as a result of increase ' claims, so premiums have beet. raised this year.
The effect of the premium increase is being felt most strongly in the lighter end of the market, where premiums for small vans and pick-ups have been raised by between 20% and 25%, says RHA Insurance Services. HGV insurance premiums have also been increased by between 10% and 15%.
Peter Taylor, for RHA Insurance Services says, "For many insurance companies their commercial vehicle accounts were worse than their private car accounts," and he warns that most insurance companies seem to be increasing their insurance every six months.
The British Insurance Brokers Association says that the premium increases are a fact of life which operators will find difficult to avoid. The insurance market is very competitive in spite of these increases so there is little variation in rates.
Increasingly, insurance companies are restricting their cover to third party or fully comprehensive policies because they are losing money on third party, fire and theft policies, warns BIBA.