The latest from MCE;
MCE is trialling a new approach to Third Party Interventions (TPI’s) with ambitions to save around £8m in costs annually. Principally, the cost savings will come from reducing MCE’s exposure to Credit Hire costs.
MCE’s Julian Edwards explains “Credit Hire provides an effective way to provide the non-fault Driver with a replacement vehicle for the duration of time when their vehicle is in for repairs. That’s a legitimate requirement. But some of the rates that we see being charged are unreasonable, the vehicles being used are over specced, and the hire durations too long. It’s an industry-wide issue that needs to be addressed.”
MCE have access to data that allows them, in real time, to find the best rate available for a hire vehicle in a given postcode. A new communications process with non-fault third parties means that MCE offer to supply an appropriate vehicle without the need for the third party to enter into a credit agreement, and at a better day rate, which MCE agree to settle directly.
“It’s win-win. As a business, we are saving money by taking this stance. But for the insured, and for the injured Third Party, we are intervening immediately and finding ways to keep the claim costs down for them, prevent the need to enter into a credit arrangement over a vehicle, and actually looking to reduce the time frames for vehicle repair or replacement, so a faster settlement process. That’s what insured motorists want from the insurance industry.”