Insurance set to rise
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by Nikki Daly • Hauliers face soaring premiums or being refused cover as the major insurers try to recoup massive losses sustained over the last three years, warns a transport broker.
Insurers Guardian and the Royal and Sun Alliance have advised brokers that they are not interested in taking on any more fleet business unless it is linked to a property. This points to an attempt to stem pay-outs, which have been as much as £ 1.20 for every .£1 received in premium payments.
If this attitude is reflected across the entire insurance market then hauliers could indeed be in for a severely rough time," says FMW Corporate Risks director Peter Blanc, He says hauliers will be the first to suffer because the size of their vehicles and claim volumes make them the worst motor ing risk. "Those operating on the Continent will be hit hardest because they have the highest premiums-5% of £4,000 a vehicle is a substantial rise," he warns.
One factor driving the tougher approach is an increase in third-party claims for every possible injury or loss. Even a simple shunt by a truck can result in a multi-thousandpound claim, if the third party suffers whiplash, for example.
Blanc says that in times of rising premiums, hauliers should look for three-year policies. It is important to maintain a good track record of low claims, and investing in driver training can also pay off. Some insurance firms, such as Eagle Star, reward hauliers investing in driver training with lower premiums.