How to Reduce the cost of Fleet Insurance

Negotiating the insurance premiums for fleet vehicles can be a costly process. There are however several things you can do to help bring those premiums down for your multi vehicle fleet policies. These tips will apply to all sorts of fleet vehicles, from company fleets through to large courier courier fleets.

If you are responsible for your companies fleet of vehicles, then you will be well aware of how much the premiums can be. Luckily, there is scope for fleet managers to look at reducing their fleet insurance costs when the time comes to renew their cover. These real-world tips can see some great savings across the whole fleet if you take the time to implement them.

Here are three of the best ways to save money off fleet vehicle insurance. 

Ask for your fleet claims performance

One excellent initial way to help get a better quote from your current insurer is to ask them for your fleet’s authenticated claims experience.

This is a document that shows data from the whole of your fleet such as exposure and the number of claims made over the last few years. Where this can work a treat is that it will alert your current insurer to the fact you may be looking to move elsewhere. This will therefore encourage them to give you a better deal to stick with them.

Make sure you have the right type of cover

Another area to consider is what is included in your current insurance premium. Most companies will have a few extras in their fleet insurance that soon bump the overall cost up. Things like windscreen cover are a great example of this.

Take the time to consider not only if you really need these extras and if so, could you get it cheaper elsewhere? By doing this, you will soon drive your costs down.

Look at where your vehicles are based

In general terms, your insurance costs will be cheaper if the vehicles are not primarily used in a city like London. Some companies make the mistake of telling their insurers that their fleet is based in the city they operate from, even if the cars are not actually present or driven there! If this is the case, let your insurer know the details of your drivers and their postcodes to drive your costs down.

Compare Providers

Of course, one superb way to find better value fleet insurance is to shop around between insurers. Although it can take up a little time, it really is essential that you compare fleet insurance if you really wish to bring down the cost of a policy.

Improve security

A key way of reducing fleet vehicle insurance costs is to improve the security of the vehicle itself. Modern vehicles will doubtless have standard safety features, but after-market locks, tracking systems, and telemetry devices can have a big impact on lowering insurance costs.

If you operate a courier fleet, these additional features are essential in improving the integrity of your vehicles. Check out our courier fleet insurance page for more on this area.

Also, improve the security of the premises the vehicles are stored in when not in use. At the very least the vehicles should be kept behind a locked gate. Secure fencing, CCTV and alarm systems, and storing vehicles inside whenever possible can make them less of a theft risk. 

Driver selection

Being discerning with the drivers you allow into your vehicles can also lower your insurance costs. Drivers over 25 are almost always cheaper to insure. As are drivers who have clean licences versus those who have a number of endorsements, and experience driving your fleet’s vehicle type.

It may also be worth investing in a range of driver training activities to improve your drivers’ skills. Demonstrating to your insurance provider that your drivers are trained to handle the vehicles safely in all circumstances, they should respond in kind by offering lower premiums to insure them. 

Re-evaluate payments

Your insurance will automatically lower if you raise your voluntary excess – namely the amount you pay if the vehicle is involved in an accident. Although it’s potentially risky, it’s a tried and tested way of lowering insurance costs if you weight up the probabilities of an accident. 

Choosing to pay your policy annually can also save you money. It’s a larger upfront cost, but once it’s paid there’s nothing more to worry about. Though this can be more practical for smaller vehicle fleets, depending on the circumstances it may be worthwhile to consider for large fleets too.

Have you purchased the correct type of cover for your needs?

It may sound like a very simple concept, but in all honesty fleet insurance can get rather confusing. If you own a small / medium sized fleet, you may want to consider getting fully comprehensive rather than a third party only cover.

The reason for this is the fact that the cost difference between the two types of insurance isn’t that big at all really.

Also, although we always recommend being prepared with your insurance, it is important to differentiate from being prepared for accidents and being prepared for an absolute apocalypse.

Do you need windscreen cover? Check your claims history, how many windscreen claims have you made in the last two years? And how much money could you save by avoiding it all together.

Fleet managers seeking to reduce their running costs in 2021 will be pleased to know that by reducing insurance premiums for the vehicles they operate, they can make substantial savings. In the following sections, we’ll study three simple measures managers can take to ensure the price they pay for insurance remains as low as possible.

Parking vehicles securely overnight

After the vehicles of your fleet have finished their runs for the day and are no longer on the road, it’s crucial that they are stored safely during the night. This might seem obvious, but vehicles that aren’t parked in a secure place at night under lock and key can have a significant impact on insurance costs, with insurers hiking premiums for firms that don’t store their fleet safely.

Whether you need to adapt your premises or source a secure parking option, safeguarding your fleet overnight is a move worth making to reduce how much you pay for insurance.

Installing alarms and trackers

Fitting immobilisers and alarms throughout your fleet will not only reduce the chance of your vehicles being swiped overnight, but it will also decrease the quotes you receive for your insurance renewal.

Installing dedicated trackers onboard your fleet vehicles is another easy way of reducing insurance costs. Your ability to track fleet vehicles if they are stolen will be taken into consideration when most insurers quote, so ensure they are made aware when devices are fitted to cut the size of your quotes.

Fitting dash cams

Finally, the use of CCTV in vehicles has seen a substantial rise recently, due to the advantages it gives to motorists and enterprise owners that operate a fleet. Dash cams are an ideal solution to provide insurers with inarguable evidence when vehicles are involved in accidents. When an incident occurs, vehicle owners can find the event on the dash cam’s recorded footage and send it to their insurance provider. This kind of evidence is ideal when supplying insurers with details of an accident so they can rule out any fault on your part when you make a claim.

If you’re looking to compare commercial insurance providers, take a look at Total Insurance today.