Independent Insurance's collapse last month has left dealers and bodyshops with worthless motor trade policies, according to broker Regal Cover. It believes companies face “huge premium increases” to buy replacement policies.
Provisional liquidator PricewaterhouseCooper said premises would remain insured against employee liability claims but commercial claims for fire, theft or other damage would not be met. Independent Insurance is thought to hold motor trade business worth more than £50m.
Lee Cohen, Regal Cover director, said the collapse would have a “catastrophic affect” on the motor industry.
“Independent insured vehicle manufacturers, dealer groups and bodyshops will find themselves out of pocket and without insurance cover,” he said.
“Independent's rates were extremely low compared to the rest of the market. Dealers and repairers now face the prospect of having to immediately pay huge premium increases for new policies.”