UK Insurance News

The UK’s biggest motor insurers are getting ready to do battle with the Home Office over plans to increase charges for the removal of broken down vehicles from the roadside.

The Home Office want to replace the current charges of £105 per removal, £12 per day storage and £50 for disposal, with 23 bands of charges ranging from £145 up to £8400.

The fee is paid to vehicle recovery companies who, will remove vehicles on police instruction, that are broken down, abandoned, illegally or dangerously parked.

The Insurance Forum representing twenty five of the country’s top motor insurers, including Norwich Union, Zurich and Allianz, are preparing to take the government to court if the proposals become law. The group are also represented by ABI, Highways Agency and vehicle recovery companies.

The ABI says that vehicle recovery already costs the industry £50million a year and have recommended their own scheme with lower charges and a flat rate of £150 for all vehicles under 3.5 tonnes. The ABI has also submitted documents supporting their claims that the Home Office is over estimating the cost of vehicle removal.

Since the Home Office published its proposals, The Insurance Forum have received 66 applications from other motor insurers eager to join the group and do battle with the government. Joint chairman of the forum Michael Eagles said;

“It is still hoped that the Home Office will review its proposals and produce a charging regime that more accurately reflects the marketplace.”