Increased claims costs reported by commercial motor sector

More than three-quarters (78%) of commercial motor brokers saw an increase in complex losses and 91% had seen claims costs rise in the last quarter (July – Sept 2023).

The figures, from the latest Direct Commercial Barometer, underscore the essential role of strong partnerships between insurers, brokers and commercial motor operators to help reduce incurred costs, says Direct Commercial.

The insurer in the commercial motor sector is urging fleet managers and drivers to proactively report road traffic collision incidents to their insurer and initiate claims early, preferably from the roadside.

This, it says, will help alleviate the impact of persistent inflationary challenges, surging costs, and delays in repair on commercial motor operators.

Carl Cripps, from Direct Commercial, said: “The results from the Direct Commercial Barometer highlight a new, pressing need to minimise the escalating claims costs many are witnessing.

“One of the most effective ways that commercial motor managers and drivers can achieve this through swift reporting of incidents from the roadside.

“We encourage all operators to contact their insurance brokers to access expert guidance to mitigate costs.”

Direct Commercial's figures comes after the insurance industry has hit back at claims that fleets are being unfairly hit with high premiums for electric vehicles (EVs).

Direct Commercial says that if a road traffic collision occurs drivers should report the collision to your insurer immediately from the accident scene.

They should also be proactive at the scene – drivers should take down a phone number, name and vehicle registration of the third party involved and take plenty of photos, if it is safe to do so.

Furthermore, it says that fleets should make their insurer aware if dash-cams were there. Swift notification that this kind of evidence exists can be vital in assisting with liability and help protect against fraud.