Motorists, vehicle repair professionals and hired car companies have been put on alert that motor insurance claims costs may increase in the not-too-distant future.

The warning has come from the insurance industry, as the soon to be implemented levy on hired cars which took effect since 15th October 2025.

“This levy will significantly impact the costs of settling motor claims, because it is expected to increase loss of use expenses by approximately 28%, further adding to the financial strain already faced by insurers and policyholders alike” stated President of the General Insurance Association of Barbados (GIAB), Andrea Walton.

The President explained that since learning of the levy, the GIAB, as the organisation representing the industry, had reached out to the Ministry of Finance on multiple occasions seeking dialogue and clarification but has not received a response to date.

Insurers continue to face major challenges due to the limited availability of car parts, which often results in vehicles being written off or experiencing lengthy repair delays lasting several months. In many cases, companies are forced to pay high freight charges to import parts expeditiously for individual repairs — a situation that is becoming increasingly untenable.

Walton reiterated that the industry remains committed to working with all stakeholders to find solutions that ensure fair treatment of policyholders while maintaining the stability and sustainability of the motor insurance sector.