ILC ARTICLE

Basic Hire Rate (BHR) tracking – where are we now? 


Article supplied by Whichrate 

As the business world navigated the pandemic in 2020, one of the many problems presented to insurers was a distinct lack of hire vehicles available coupled with uncertainty over what vehicle hire rates would look like from month-to-month. 

As a result, this made planning and reserving for claims a challenge.  

Whichrate realised that the vast amount of data collected daily could be utilised to help its clients in this area. 

David Gardner, Director at Whichrate said, “As there is a natural lag between RTA and the claim being settled, having a monthly update on live rate fluctuations compared to pre-pandemic trends, proved to be invaluable. Not only on a national level but by regions too.” 

Having analysed the 2023 Basic Hire Rate (BHR) market, Whichrate reports a steep deflation. From the tens of thousands of reports produced by Whichrate in 2023, it identifies that just six ABI vehicle codes made up 50% of the searches made.  

Whichrate also reports: 

  • Whilst there were some modest price increases in December 2023, which is the seasonal norm, for the top six ABI codes it was five per cent 
  • Overall Q4 2023 finished 24% lower than Q3 2023 
  • 2023 rates were 22% lower than 2022 with rates often matching pre-covid levels 

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