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Insuring Hire Vehicles Becoming Significantly more Difficult

Date: 27.06.2013

2013 seems to be the year insurance companies want to say no to Transfers onto Vans.

Ireland seems to be the country that large organisations and public bodies seem to relish in inflexibility, it now seems the insurance companies want to get in on the act. It was  never easy for private home-owners to get insurance transfer onto vans but typically it could be done. Certain insurance companies, most notably FBD were fantastic and provided these transfers for free, however this seems to be no longer the case. Even our favourite insurers of the past seem to have tightened up to a huge extent.


This problem does not only affect our customers but it effects us directly. Last year the two main players in the van rental insurance market packed their bags and left our fair Isle, never to be seen again. Much like their banking brethren they limped back to the UK nursing horrendous losses while facing up to irate shareholders. This outcome did not go unnoticed. A group of forward thinking independents in the car and truck rental industry did try to get a scheme off the ground and despite stellar efforts on their parts it was impossible to find an underwriter who would touch the Irish market. After a couple of months of limbo a new entrant came into the market but on far stricter and more expensive terms that what had come before.

One major differences are that we can no longer provide cover to customers going on trips to the UK or Europe. We can still provide cover for Northern Ireland. The second major difference is the class of vehicles the we can insure. Only vehicles that can be driven on a category "B" car licence can be covered. This rules out coverage on our larger medium size trucks and above.


So where does this leave us? Well basically we are finding that our insurance costs are still rising at around 20% per annum, this has resulted in a corresponding increase in our insurance prices. This is not optimal for us and coupled with the tightening on transfers by private users insurance companies mean that we are finding that more customers are in need of our insurance facility. The rising costs that we are presented with are perhaps to do with an increase in the propensity for people to sue in the poor economic climate and a legal profession chasing low end work that previously did not interest them.


With that said I have decided to break down quickly the pros and cons of taking cover from us to help you make a more informed choice.

Advantages of Taking cover from A Vehicle rental Company:

  • Leaves your own insurance cover on your primary vehicle
  • Simplifies the vehicle rental process and results in a single transaction
  • Does not affect your own insurance policy in the even of an accident
  • Sometimes the insurer will transfer for free.


Disadvantages of taking insurance from a rental company:

  • The excess amount can be up to 1600 Euro, drive carefully!
  • Higher amount of hold on credit card.
  • There is always a charge for purchased insurance.


We are actively working on trying to find a solution to these rising insurance costs, however the outlook is bleak considering the environment we find ourselves operating in. That said, please feel free to contact me or any of our staff members if you have any concerns about vehicle cover.


John Murphy.

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