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An extra £150 per claim doesn’t even scratch the surface for claims, it merely offset the small car park dings and wheel kerb damage claims.
Also still smaller than most private insurance excesses.
Remember that there have been significant insurance premiums increases this year and Motability pick up the tab for all sorts of drivers, all from the £77.05pw( PIP)
Young drivers
Drivers with several claims
Drivers living in high claim areas.
Drivers driving high insurance group cars
Also the increasing use of writing EV ‘s off in the event of a crash. Many articles on this and the consensus seems to be that insurance companies do not wish to entertain future , perhaps very high claims in the event of a vehicle fire due to undiscovered battery damage. They are happy to leave that to other insurers if the car is put back on the road.
Resale values have plummeted so someone must pay and it won’t be a profit making company, ie Motability.
Even with these higher AP’s, I doubt Motability will post a profit for many years.
Everything had rocketed up in price after the NI hike and relatively significant increase in minimum wage. This even effects employers pensions contributions, so again someone must pay, ie the end consumer.
Privately leased vehicles are also much more expensive although they have the luxury of charging more per month, something Motability cannot do at present.
Not all electrics qualify for the grant.
Only two at present qualify for the full £3750, both Fords.
Just google for the .gov ev grant site to see the list of qualifying cars.
Also think it’s better for Motability to keep any grant given and funnel towards providing grants for adaptations and WAV’s.
Did you notice the schemes
Find a car filter re AP’s for standard vehicles
They have put the bands at £250 intervals but now included bands up to £15,500.
Perhaps in anticipation of Q4 AP increases…!!!!
From what I can gather, it looks like more reliance on the last mobility PIP question or equivalent childrens dla etc, rather than any points from anxiety , planning a journey etc.
Many people could claim to have anxiety or inability to plan a journey by public tansport but that really shouldn’t qualify them for a state paid car. They can obtain a car through other means.
Preparing for adverse comments……
Keto
Could it also be that the government is forcing Motability to push EV’s to increase the government transition figure as Motability leases account for 1 in every 5 new car registrations in the UK.
The government could if they wished to, bring the vat exemption in line with that given to privately bought vehicles for disabled people. Its very restrictive.
1. Vehicle must be significantly adapted for the recipients disability. Minor adaptions do not qualify for Vat exemption.
2. The exemption can only be requested once every 3 years.
The government would gain perhaps on average £6k plus for every non significantly adapted vehicle. Say 160,000 per year ( from the overall 220,000 leases each year)forc every non significantly adapted vehicles would give Mrs Reeves some £1 billion in extra vat receipts every year.
Yes
My observations as well.
I think most insurance companies are too quick to write off cars as its easier and no comebacks. The policyholders simply pick up the increased costs. Direct line is probably no differant.
Motability employ over a 1000 staff and as you say , all the increases must be paid from somewhere. I would expect the majority of their staff are on or near minimum wage. That in addition to Direct Line Staff, garage mechanics and staff, Kwik fit staff, RAC staff and all the items and services they purchase from othsr compqnies.
Not sure everyone were awarecof the implications of increasing the minimum wage, plus associated increased employer pension contributions and national insurance. It actually increases the cost of every service and every item we purchase.
Many used car buyers don’t/ won’t buy second hand batteries.
There arecjust too many expensive associated EV items which can and do fail. In addition, not many sensible priced repair facilities exist at present.
Options do not mean you have the rights, both parties need to agree.
ie , you request , they agree or not
The normal lease is 36 months, with the possibility of e tending it. Its not a right.
Cars lose a lot of money from years 3 through 5 and a
So more expensive servicing and tyres. If Motability encounter higher losses, then as a private company , they cannot be expected to absorb them.
It would appear its a derivative of the insurance black box which has been tried and tested for many years
I’m sure that the box will only connect to the smart phonethro near field communications or bluetooth and only return gathered data to Motability. So if if a differant vehicle, it won’t report
Perhaps, if the driving score reduces due to one of the drivers with another Drive Smart 30 person also in the car, then they must, if requested, state who was actually driving or be subject to some form of exclusion.
Failure to do so would result in forfeiturecof the Motability vehicle as DLM would remove the insurance.
No differant to an intended notice of prosecution arriving at the registered keepers address and requesting the name of the person who was driving at the time of the alledged offence / infringement.
Moral of the new rule will be…..
Pick you nominated drivers with care, especially those who you suspect are erratic drivers…..
Think it may be the thin edge of the wedge.
Ultimate goal to prevent unacceptable use of scheme cars and ensure only authorised people are driving the vehicles.
Compulsary Drive Smart technology applies only if someone under 30 is a named driver or the recipient. It however will require all drivers of the car to sign up to the app, not just the under 30’s.
Insurance excess increase only applies to all new leases from Oct 2025.
