New Insurance To Cover End Of Lease Charges

Friday, 2. October 2009

Finally, it’s happened, a company has brought out an insurance policy to cover the ever growing end of contract refurbishment charges for cars and vans that will be returned to the leasing company at the end of the lease. The cost of the policy will range between £290 and £350 for a standard family sized car and it will cover vehicle damage over and above fair wear and tear up to £1,500. This may seem like a good idea but I think it will simply encourage drivers to not look after their cars. The company is called Fleet Management Group and offers policies to consumers as well as fleet customers. Whilst it worries me that the leasing companies are ripping off customers I’m not sure that this is the solution, we need to challenge the charges and stop what I consider to be an illegal activity. Incidentally, Manheim the auction house and collection company announced that the average refurbishment cost, over and above normal wear and tear, has increased from £265 to £290 so one has to ask, if you run a fleet of vehicles, will the insurance actually save your company money. My solution would be at best charge staff for refurbishment costs or at worst sack them! I’ll get my coat then! By Graham Hill