New GTA reforms to reduce claims costs and improve mobility for motorists

The Credit Hire Organisation (CHO) and motor insurers have unveiled major reforms to the General Terms of Agreement (GTA) to cut claims costs and improve mobility support for motorists affected by accidents.   

Key changes include:   

1. An annual independent vehicle hire rate review driven by market data   
2. Compulsory arbitration where cases are not agreed and settled within a set number of days following submission of a clean payment pack  
3. A new set of late payment penalties
4. Clearer rules on the areas of argument/dispute in the arbitration process 

The reforms are expected to significantly reduce the volume of credit hire cases reaching County Court, with Hughes estimating up to 100,000 cases could be diverted annually. This would relieve pressure on the civil justice system and speed up claims resolution.   

CHO CEO Anthony Hughes said, “For the past 18 months we have been working with both insurers and the ABI [Association of British Insurers] to conclude significant revisions and improvements to the GTA. Our strategic objective has been clear from day one; reduce or ideally remove frictional costs and put consumers at the heart of the accident management process.”  

Pete Highfield, representing the GTA Strategy Board, said, “We want the real winner to be the consumer by making the post-accident journey as good as we can and to avoid dragging policyholders through the courts.” 

The changes align with the Motor Insurance Taskforce’s (MIT) objectives to control credit hire costs. 

The CHO has also written to Transport Secretary Louise Haigh, outlining how these reforms will create a more efficient claims process with lower costs for motorists.   

Supporting motorists   

The CHO represents the UK’s credit hire sector. For over four decades, the CHO has provided essential mobility solutions to accident victims, ensuring they can continue their daily lives while their vehicles are repaired. The revised GTA builds on this legacy, aiming to make post-accident journeys smoother for consumers.   

Image: Canva 

Josie Geistfeld Josie is an editor for Claims Media. She welcomes feedback, comments, and opinion at josie.geistfeld@barkerbrooks.co.uk