Fleet Insurance is by far one of the most expensive forms of insurance out there. Having said that, it doesn’t need to be!
Fleet cover is typically expensive due to poorly managed fleets and un-vetted drivers. A combination of these 2 things lead to drastically increased insurance premiums. An example of this recently was when a courier company had found a cheap courier fleet insurance policy at £40,000. In their first year they made £250,000 worth of claims and then were surprised when their renewal from every company they went to was £180,000 for the year. That’s an increase of £140,000.
Why did it increase so much?
The increase was caused by the amount of claims; the claims were due to the drivers who were un-vetted and not trained correctly.
Many fleet operators need to get a handle on their drivers as ultimately, once they have left the depot, they are in charge of how they operate the vehicle and carry out their day-to-day work.
There are a few steps you can take though to help reduce your fleet insurance costs, help your drivers do their job correctly before it gets to the stage of dismissal of poor drivers.
This will begin with a risk assessment and you insurer will help you with this. They will work with your to analyse your risk and highlight areas of improvement.
Make your drivers aware that you will monitor accidents and take action if required right up to dismissal for repeat offences. You will need to provide training but of passing such training, there is no excuse for constant offences.
Many insurers offer programs designed to train drivers. This will typically include defensive driver training that will help your drivers avoid collisions.
Not all insurers will give a discount straight away but a cleaner claims record will always go a long way!
It is imperative to manage your fleet. Drivers aged between 17 – 20 are twice as likely to have an accident and generate a claim. As well as that, the claims caused by those between 17 and 20 are likely to cost 3 times more than the average and involve bodily injuries.
Look closely at the policies, if you allow young drivers, consider restricting personal use especially at night when most accidents happen.
Many Insurers will allow you to combine your policies in order to save money. An insurance all under one roof is also easier to manage.
Equip your vehicles with Camera Technology
Forward facing cameras provide valuable when collisions are involved. An accident caught on camera can easily be settled as there is no extensive investigation required. They also extremely effective in reducing crash-for-cash claims. Fraudulent claims currently cost the industry circa £350m a year. Costs that the insurers are passing onto clients.
Renewal Policies Early after Proper Review
Review your policy before renewal and don’t add extras that your don’t require. Windscreens can be quite cheap to replace these days so paying your insurers to potentially replace say 20 windscreens a year when you will only replace 10, it works out to be cheaper to just take on that risk yourself.
Provide Good Vehicle Security
Vehicles that are fitted with hidden trackers allow vehicles to be found and recovered in the even they are stolen. If you van is courier vehicle is stolen and you can provide pinpoint accuracy to its where location early on. There is greater chance of being able to recover the vehicle AND its contents.
A good telematics systems enables you to monitor how your vehicles are being driven. They will also show if drivers ‘rag’ the vehicles causing increase wear and tear, which push up vehicle maintenance costs.
They will also provide you the speed the vehicle was travelling at so that if speed related accidents happen, you can get to the bottom of them quickly and efficiently.
Encourage Drivers to be Honest
Accidents happen for a reason, if the cause of the accident was yourself or driver, just come forward and say so. Accidents that cause long investigations through drivers not admitting when at fault often end up being the most expensive.