London, UK – 19 May 2026 – Keoghs, the legal solutions arm of Davies, today announced key findings from its annual credit hire benchmarking review 2026. Credit hire outcomes improved measurably during 2025, with reductions in both hire duration and overall spend. However, new benchmarking data shows these gains remain fragile, driven more by operational proactivity than by any fundamental shift in underlying cost.

According to credit hire benchmarking data from Keoghs, average hire duration fell in 2025 to 32 days (from 34 days in 2024), a reduction of almost 6% across settled accident year claims. Over the same period, average hire costs reduced by over 9%, from £2,906 to £2,640. The data indicates that these improvements were achieved primarily through tighter duration control rather than rate deflation.

Early intervention drives materially better outcomes

Proactive hire period management delivered the strongest results. Total loss claims not handled under the General Terms Agreement (GTA) in 2025 saw average hire duration reduce to 41 days (from 46 days in 2024), almost an 11% improvement – linked to faster engineering input and earlier valuation decisions. The findings reinforce the growing performance gap between front‑end claim management and late‑stage negotiation.

However, inflationary pressure continued to erode the protection offered by existing frameworks. Standard GTA vehicle classes have now increased by approximately 29% in compounded rate uplifts since pre‑2022, with multiple increases through 2024 and 2025 resetting baseline hire costs. As a result, legacy protocols offered diminishing insulation against inflation during 2025.

Targeted non‑GTA strategies outperform blanket approaches

The data also highlights a divergence in savings performance. Non‑GTA claims outperformed GTA claims in 2025, achieving a saving rate of 46% compared to 43% under the GTA. This suggests that selective, evidence‑led challenge proved more effective than reliance on blanket frameworks.

Rate challenge emerged as the dominant savings lever, accounting for 86% of non‑GTA savings in 2025, with only 14% attributable to duration reductions. Data‑led rate evidence consistently outperformed procedural negotiation strategies.

Litigation increases, but recovery outcomes remain limited

Litigation volumes increased across both GTA and non‑GTA claims in 2025, with maturing litigation rates reaching approximately 10% for GTA and 13% for non‑GTA claims. Despite this increased activity, fewer than 10% of litigated cases achieved a successful impecuniosity outcome, limiting recovery potential. This indicates that recovery is structurally limited by low impecuniosity success rates rather than a lack of litigation activity. As a result, value is best maximised through selective litigation, early financial investigation and cost discipline, rather than increased litigation volume.

Damian Ward, Head of Proposition – Motor (Legal) and Counter-Fraud at Keogh’s said: “The data highlights a clear warning for insurers. While proactive hire management helped drive improved outcomes in 2025, inflationary pressure and repeated GTA rate increases mean those improvements are not locked in. Without continued focus on front‑end speed, evidential rate challenge and selective strategy, credit hire costs could quickly revert or rise further.”

Delay‑driven inflation emerges as the dominant threat

Looking ahead, the benchmarking data warns that external disruption has overtaken demand as the primary market risk. While average hire duration across 2025 reduced, the findings highlight how fuel and energy inflation, shipping and logistics disruption and parts delays increasingly extended repair times in late 2025, placing renewed upward pressure on hire duration. These risks are amplified by a higher cost base, meaning delays have a far greater cost impact once embedded.