Insurance Post: 'Rogue Firms Drive Increase in Six-Figure Credit Hire Claims'
The following are extracts from an article which was published on Insurance Post on 24th October 2019:
‘The value of credit hire claims is increasing by approximately up to £100
each year as “outlier” companies leave insurers increasingly dealing with
claims in excess of £100,000, lawyers have cautioned.
Last week Keoghs successfully defended Aviva in a case involving a £400,000
credit hire claim. The credit hire firm that had arranged the replacement vehicle,
Direct Accident Management, is not a member of the Credit Hire Organisation.
With approximately 500,000 credit hire claims in the UK every year, Keoghs
estimates that a rise in the value of credit hire claims cost insurers an extra £50m in 2018.’
‘Members of the Credit Hire Organisation are not responsible for ramping up credit hire costs, the body told Post.
A spokesperson for the CHO said: “The number of accidents every year is
coming down in number every year. In terms of credit hire elements, the truth is
that credit hire companies operate at very thin margins and under the terms of
the recently signed GTA, the charges made to credit hire companies has fallen by
“So it seems odd that in an environment where credit hire fees have come down
by 5% and there are fewer accidents that there’s such discrepancy.’
Subscribers to Insurance Post are able to read the full article, including more quotes from The CHO, by clicking here.