Motor Claims Inflation
The top four causes of claims inflation were said by respondents
to be fraud, personal injury, credit hire and increased repair
costs for technology incorporated into vehicles
respectively.
Repair Costs
Increased repair costs were a repeat theme within the top ten
responses of the reason for claims inflation. The increasingly
sophisticated technology incorporated into modern vehicles has
raised both the cost of parts and the cost of labour, particularly
as a lack of competition in the market for skilled workers keeps
prices high.
The potential impact that Brexit could have on the cost of
imported parts could compound this problem further. Further, delays
in delivery could have knock-on effects on credit hire claims.
