In the past, repairers used to panel beat damaged parts on vehicles, but these days, because of various factors, repairers replace damaged parts rather than repair. If a vehicle is still under warranty, Insurer’s are obliged to authorize the replacement of new parts only.
Motor vehicle values depreciate rapidly, but on the other hand the repair costs escalate at an alarming rate.
To maintain a balance between affordable insurance premiums and not being able to offer motor insurance at all, Insurers have no alternative, but to reduce Claim Free Groups when an accident claim occurs, resulting in increased premiums.
Other major factors contributing to increased premiums are the economic climate, adverse weather conditions, crime and fraud.