Vehicle Repair Costs Rising
Increased repair costs could potentially result in an increased number of write off’s and potential problems for fleet operators, such as financial shortfalls and sourcing vehicles during downtime.
Recent 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. Click here to read the full article from Fleet News.
Fleet GAP Insurance can give fleet operators added protection in the event of a vehicle write off by paying the greater of either clearing the outstanding finance/lease balance when the motor insurer's settlement is insufficient or paying an additional 25% of the motor insurer's settlement figure. The product will also provide a temporary replacement vehicle to keep 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 provision of a temporary vehicle costing close to £2000.