What we have seen in June renewals
June renewals in the motor vehicle market remained segmented, largely driven by claims performance. Fleets demonstrating low claims frequency and severity are achieving rate reductions of up to 5%, reflecting continued insurer appetite for well-managed risks.
Conversely, accounts with higher claims activity are experiencing rate increases, as insurers respond to sustained pressure from repair cost inflation, parts availability, and liability trends. This has resulted in a more disciplined underwriting approach, with greater emphasis placed on driver performance, risk management practices, and claims history.
Despite this divergence, overall market conditions remain competitive. Policyholders are encouraged to leverage the current environment by strengthening fleet risk controls, reviewing excess structures to align with claims experience, and engaging with financially secure insurers. Opportunities also exist to negotiate broader coverage enhancements and value-added services, particularly for fleets that can demonstrate robust governance and loss mitigation strategies.
Premium pricing trends
Pricing is flat to -5% for the best fleets and +5% to +15% for poor-performing fleets or complex heavy vehicle/EV exposures.
Insurer behaviour
Insurers are attracted to scale but are considered around repair severity, parts delays and high-frequency claims.
Claims trends
Claims remain driven by repair cost inflation, ADAS recalibration, EV and hybrid vehicle complexity, parts supply, hire car costs, driver behaviour and repair delays. Claims that have historically been seen as low severity, such as windscreen claims or low speed impacts, are seeing substantial repair costs incurred due to the extent of vehicle technology requiring repair.
Theft in most parts of Australia has largely stabilised or declined. Victoria however has experienced a significant increase in vehicle thefts, with claim numbers up 25% and claims costs rising 37%. This increase in theft activity has been driven by electronic theft via key cloning, signal amplification and onboard diagnostics programming, with keyless entry vehicles particularly vulnerable.
Legal and regulatory developments
Consumer law and repairer network issues may influence claims outcomes. Fuel security and geopolitical energy disruption may affect operating costs and fleet utilisation.
The updated Heavy Vehicle National Law (HVNL) and new Heavy Vehicle Accreditation (HVA) take effect on 1 August 2026.
AI and technology impact
Telematics, dashcams, route data, automated claims triage and repair analytics increasingly separate good fleets from poor fleets. Policyholders that can supply complete evidence following an accident to allocate claims to a responsible third party, or even avoid 50/50 settlements, will benefit from a reduced claims experience.
What policyholders should do now
Update asset registers, confirm insured values, strengthen theft controls, review hire contracts and ensure insurer claims processes suit motor vehicle losses. Policyholders who proactively invest in risk mitigation, engage early with their risk advisors and insurers and manage their contractual exposures will be positioned to achieve the best outcomes in the current market.
At a minimum, Bellrock recommends implementing the following measures to reduce claims activity and support premium optimisation:
- GPS tracking to ensure drivers remain on route and to assist with locating stolen vehicles.
- Camera monitoring to assist with recovery of costs from third parties.
- Driver fatigue and distraction management systems to mitigate safety risks.
- Telematics, enhancing fleet efficiency and operational insights.
- Comprehensive driver management – including recruitment, assessment, induction and training.
Specific guidance on driver health and safety obligations can be found here.
For battery-powered vehicles, policyholders should proactively manage fire exposure through appropriate fire-suppression measures, compliant charging and storage procedures, and staff training on battery-related hazards.
For hire and rental organisations, Bellrock strongly encourages rigorous verification of hire customer insurance, including obtaining and reviewing certificates of currency.
Continue reading our full range of market updates:
- Insurance Market Overview: July 2026
- Claims
- Workplace Risk
- Corporate and Multinational Risk
- Construction, Property and Development
- Financial Lines
