Fleet News

New insurance policy takes risk out of RVs

A NEW Manchester-based company has teamed up with Cornhill Insurance to launch a residual value insurance policy for daily rental companies. Stewart Wright, Deltapoint's sales director (and former Renault and Daewoo fleet sales manager), said the company will use CAP Motor Research data to underwrite the combined residual values of a basket of year-old cars, with each basket containing between 30 and 40 vehicles, although a rental company can take out multiple policies.

Under the terms of the insurance, car makers supply a batch of cars via Deltapoint to a daily rental company, invoicing the hire firm directly to ensure it can recover VAT on the cars. The policy also requires either the rental company or Deltapoint to sell all cars within a month of their de-fleet date. Deltapoint will then average out the disposal prices, taking into account auction costs, to determine whether there is a residual value surplus or deficit against the insured value.

Rental firms receive all sale proceeds directly from auction houses and keep any surplus but, if there is a deficit, Deltapoint will pursue an insurance claim on its policy-holder's behalf, attempting to have a final pay-out within a month of de-fleet. Deltapoint Associates can be contacted on 0161-932 1147.

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