RISING COST OF INSURANCE HITTING RALLYING FIRMS
Machines like Skodaru are not being covered by insurers
Rally insurance has become increasingly expensive, unattainable and “too much of a risk” for cars to be hired out, according to a number of leading UK rally preparation firms.
The price of insurance has risen over the last 12 months and, in some cases, it simply has not been available. That is an issue preparer TEG Sport experienced earlier this month.
John Marshall had been set to hire out one of the company’s Skodarus – a Skoda Fabia R5 shell with Subaru Impreza transmission – for the Knockhill Stages Rally, but was unable to secure fire damage cover.
TEG Sport owner Stuart Newby told Motorsport News: “I was going to start lending the development Skodaru out to potential buyers, [but] the one thing I stated is that they can use it but only if it is insured for accident and fire [damage].
“We phoned several insurance companies but they wouldn’t cover any risk of fire, for example if a turbo or power steering pump caught fire. They would only offer cover for fire if it was caused by the car crashing first. So, on that note, it wasn’t worth the risk of me lending a car without it being properly covered. The risks were too high.
“I think during the course of the year there’s been some massive claims going in for all the R5 and WRC [cars] and insurers are running away from it.”
Melvyn Evans Motorsport has experienced similar problems in the last year and has had to turn away customers because it cannot guarantee it can get insurance. This has led team owner Melvyn Evans to consider if he will hire cars out next year.
“It’s become worse, I don’t know why,” he said. “[Maybe] some people are claiming they’ve not made money, I don’t know. But over the last year it’s got a lot more difficult. Before I’ve had three or four hire cars here [and] we could reduce it back to maybe one or two and just see what happens but if I can’t get insurance I’ll sell them.”
Welsh Championship and
BTRDA competitor Dylan Davies, who regularly hires out Subaru Imprezas and Ford Escort Mk2s, said the spike in premiums of late is “near on making our job impossible” to hire cars out.
“Obviously customers want the cheapest insurance out there, which also has to match up to our needs,” he said. “One of this year’s hires ended up with the insurance costs being the same as a full weekend’s rallying. It’s not good for rallying in general, not just us as a business.”