This month it was disappointing to hear that Drive Assist UK had gone into administration and that as a result 259 members of staff lost their jobs. Drive Assist UK is a Staffordshire-based company that was established in 1992. For the past twenty years the firm has provided accident management facilities for insurers, brokers, accident management companies and accident repair centres.
The collapse of the firm came after it had a significant loss of contracts throughout the year resulting in a pre-tax loss of £233.4million. One source stated that ‘originally Drive Assist UK had been able to secure contracts as it offered insurers large commissions on referrals, and a few years ago it could afford to do this as there were higher accident frequency rates as well as higher average hire times.’ However, evidence suggests that hire duration periods have fallen, there are fewer cars on the road due to the increase in fuel prices and as a result accident frequency has shrunk.
This is a difficult time for the industry and the downfall of Drive Assist UK is going to leave many motorists in a quandary over the festive period. Individuals involved in car accidents often need replacement vehicles and the fact that Drive Assist UK has gone into administration means that there is now one less company offering short-term car hire to people following accidents.
If you have been involved in a Road Traffic Accident and would like free legal advice from a qualified solicitor please feel free to contact us on 0808 159 7886.