Bellrock handles motor vehicle claims for employees as well as directors and officers of companies. Experience has shown that motor vehicle claims can be one of the most important but overlooked types of claims we manage. Often, the claims are for motor vehicles used in business that form part of an insured company’s fleet.
Motor vehicle accidents, even minor accidents, can often cause immense stress and inconvenience due to the impact on a customer’s ability to fulfill their usual business activities. Additionally, many corporate vehicles have a blended use being personal and professional, meaning an accident can cause disruption to not only business affairs but also school pick-ups and drops-offs and family weekend activities.
When arranging motor vehicle insurance, it is important to understand each client’s corporate and individual needs in the event of a claim. Many Bellrock clients will consider and include hire car cover despite the extra premium involved to have peace of mind and continuity of transport in the event of an accident whilst providing certainty to our clients’ that their day-to-day lives won’t be greatly impacted in the event their vehicle remains under repair for an extended period.
Typically, motor vehicle insurance policies with hire car cover provide coverage to a fixed limit, e.g. $5,000, and, in the event of a claim will issue a replacement hire vehicle like the one under repair. Depending on the availability of parts, repairs can take up to two months and our claims experience in this space suggest this level of cover is often adequate for most repair timeframes.
However, even if an insured business or individual does not have hire car coverage there are still options available if an insured has a non-fault accident with a third party. Vendors such as Right2Drive and Not My Fault may offer contractual arrangements for drivers not at fault in an accident whereby they will supply a hire vehicle in exchange for the right to recover the costs of the hire car from the third-party at fault for the accident. It should be noted however, that when using such vendors, the recovery will be limited to the reasonable costs incurred in hiring, for the total period of repair, a substitute vehicle that is broadly equivalent to the damaged vehicle.
In short, hire car coverage is an important consideration for any commercial or personal motor vehicle insurance programme.
For more information, please contact your Bellrock Advisor.
