Rise of electric vehicles could lead to increased total loss claims
Increased repair costs and the move to electric vehicles could result in an increased number of write off’s and potential problems for fleet operators, such as financial shortfalls and delays on replacement vehicles.
Recent market news shows the increased repair costs are partly driven by difficulty obtaining parts post-brexit and for the most part there are few simple repairs now. The issue is made worst if it is an electric vehicle (EV). The battery is hugely expensive and is likely to produce a large repair bill and could even result in a swift write-off.
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Fleet GAP Insurance can protect fleet operators from a financial shortfall in the event of a vehicle write-off through paying the greater of either, clearing the outstanding finance/lease balance or paying an additional 25% on top of the motor insurer's valuation of the vehicle.
Fleet GAP can also provide a temporary replacement vehicle in the event of a total loss, something many insurers do not provide once the vehicle has been written off. This added provision reduces the downtime for the client and keeps their business moving whilst they source a replacement.
The benefits are clear from looking at a recent Fleet GAP claim paid on a Volvo XC60, written off due to a flood. The policy paid out over £8,000 including the cost of a temporary vehicle costing close to £2000.
Fleet GAP is an annually renewable policy and is designed to sit alongside the main fleet insurance to provide added protection in the event of a vehicle write-off.
Our renewal retention rate on Fleet GAP is 90% and new business conversation rate is at 30%. This product can provide added value to your fleet quotations and aid in customer retention.