Why is average repair cost so important?

Typically, 20% of Fleet drivers will be involved in a road traffic accident every year.  The knock-on effect of these incidents involves a lot of time and money for drivers, fleet managers, insurers and other people linked to the event.

Usually the largest element of cost is the damage repair itself and this is the first reason why Average Repair Cost should be an important focus for the policyholder.

Incredibly, for normal fleet cars and vans, the Average Repair Cost can be as high as £1,500 or as low as £800 according to a number of interesting factors:

  1. Who is responsible for estimating the damage?
  2. Who checks how the estimate was prepared?
  3. Who is ultimately responsible for paying the bill?
  4. How is Average Repair Cost calculated?
  5. What repair method is being used?
  6. What quality of repair is required?
  7. Whose repair network is involved?
  8. What terms are in place with the repairers?
  9. Does the final invoice match the estimated cost?

Insurers calculate fleet premiums based on what they have to pay out plus what it costs them to manage the claims so Average Repair Cost is intrinsically linked to fleet insurance costs.

So, if your average repair cost is towards the top of the scale, you may wish to ask yourself why that is the case and what can be done to lower it.  The answers may be surprising to you.

If you don’t know your average repair cost and realise that you should know, why not bring in RVM Assist for a free analysis of your last 12 months claims on a confidential basis?

You can find us at www.rvmassist.co.ukor call us on 0113 224 8800 and ask for Angela or Diana.

At RVM our integrated approach allows us to help fleets to implement effective safety policies, analyse trends and identify high risk drivers. Our Driver Training program is targeted, timely and appropriate. The result is lower accident rates, improved driver safety, and reduced costs

Back to News

Fleets
MORE

Leasing Companies
MORE

Insurance Brokers
MORE

Telematics Companies
MORE

Why Choose Rvm?

Simplicity

Time Saved

Convenience

Consistency

Predictability

Accountability

Transparency

Reliability

More reasons to Choose RVM