Insurance premiums set to rocket

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Changes to the Ogden rate in March of this year are driving injury insurance costs higher than ever. Richard Simpson looks at what operators can do to limit the damage.

Coach and bus operators have grown accustomed to operating in a world where the cost of doing business is relatively modest. Despite the worst predictions of the ‘Remain’ lobby, fuel prices have remained low since the Brexit vote and wage increases have been restrained. While the ‘ticket’ price of imported replacement vehicles has gone up, much of the sting has been taken from this by interest rates remaining at an historic low, meaning that the actual cost of vehicle acquisition is still relatively static when finance costs are taken into account.However, there is one major fixed cost which is destined to rise sharply: insurance. For operators, it’s going to be a case not of ‘if’, but ‘when and how bad’ the increases are.[…]

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