Postscript...

Commenting on the Motor Insurance Taskforce’s report, which among other areas, examined the impact of replacement vehicles on the cost of motor insurance, Anthony Hughes, Chair and CEO of the Credit Hire Organisation, the trade body for the credit hire industry, which provides mobility for consumers while their vehicle is off the road, said:

“We were pleased to be able to brief the taskforce team directly on the role played by our members in providing mobility to consumers following an accident, and in particular to demonstrate how our work with insurers to negotiate a revised GTA (a voluntary protocol which seeks to reduce frictional costs in credit hire claims) will further improve the customer journey and bring down costs. This important work has been acknowledged by ministers in the report and gives added impetus to our efforts to complete the renegotiation in the early part of next year.

"It is clear from the evidence that the biggest impact on motor premiums is the costs of repair. Repair data* shows that third-party repair bills in the UK rose from £1,848 in 2018 to £4,802 by mid 2025, and it’s likely to increase next year. Costs have increased as a result of vehicles becoming ever more technically advanced."

I thought this was worth sharing, especially the final paragraph which I have highlighted. Critics of the credit hire industry often lambast the credit hire industry for average hire periods extending and bulls increasing as if they expect the rental industry not to suffer from the same macro-economic effects as others in the accident sector.  

It goes without saying (although nobody is saying it) that if repair costs have increased because vehicles have become more technically advanced, then so will repair periods, effectively increasing the length and cost of hire. Important to keep that soundbite in mind when responding to the inevitable interest from journalists in the next month or two.

In addition, it’s also important to remember that rental companies are customers in relation to the acquisition of their fleet. They will buy the same technically advanced vehicles which are causing repair costs to increase. That means the cost of acquisition of those more advanced vehicles by rental companies is higher and that feeds through to increased hire charges.

Just saying…