Motor Fleet Insurance:  How can I reduce the costs?

Motor fleet insurance is designed for businesses that have the use of several vehicles, more than 2 to be exact. It allows businesses to place multiple vehicles under one policy. Fleets can include all types of vehicle, whether that be cars, vans, HGVS, taxis or minibuses.

Every year the number of vehicles on the roads is on the rise. This means there has been an increase in potential dangers business drivers are facing whilst at work. Research suggests that the UK has the highest level of injury claims in Europe, despite this, one third of UK business drivers are thought to be driving without the correct insurance to cover them for business purposes. Without a fleet insurance policy, businesses could face running into thousands of pounds worth of damages, should a vehicle be involved in an accident. Not only could this leave businesses out of pocket, it could also ruin its reputation. Thankfully, there are positive steps your business could take to reduce the cost of fleet insurance and in turn, minimise the financial impact a road accident can have on your company.

Review your existing fleet insurance policy

With the number of staff constantly fluctuating, it is not surprising that keeping track of who is covered on your fleet insurance policy can be difficult. It is therefore important to keep your fleet insurance details up to date, ensuring your policy covers all drivers as well as all vehicles, new or old.  Imagine an accident occurred involving a driver that was not added to your existing policy in error – the consequences could be devastating for your business. Equally, reviewing your current policy with a broker such as will ensure you are not paying for any unnecessary costs, for example, insuring an old vehicle against collision when in fact it is no longer being used. Vehicles also decrease in value the older they become, so it is important to check vehicle details too.

Invest in Technology

Installing certain technology such as front facing cameras, has been proven to have a positive impact on driving behaviour, meaning drivers are generally being safer on the roads, using more controlled driving techniques. Businesses such as trucking firms, are not only installing this technology for safety reasons, they have also been proven to help cut the costs of fleet insurance. This is because insurance companies recognise that such technology can be used to provide more accurate ‘risk-scoring’, a point which is taken on board when considering your fleet insurance premium. If the risk score is low, your insurance premium will be cheaper.

Reduce the time taken to report incidents

If a third-party claim is made, the costs can rise considerably, however, the quicker the claim is reported the quicker the insurer can reduce the time it takes to settle a claim, therefore costs are kept to a minimum.

Ensure all vehicles have a good level of security

If your vehicles are secured they are less likely to be involved in an incident. It is therefore wise to ensure vehicles are secured, overnight especially. Devices such as Cybit trackers can be placed within a vehicle to track its location if it should be stolen. Insurance companies see such devices as having a positive impact on level of security and therefore insurance premiums may be reduced.

Provide Training

Certain insurance companies may offer driver training programmes through a number of their partners. This may decrease your fleet insurance premium as the drivers will be considered safer on the roads.

Manage young drivers

Research suggests that young drivers, typically between the ages of 17-20, are twice as likely to be involved in an accident and therefore make a claim when compared to any other driver. Studies also suggest that these claims are 10 times more likely to involve severe bodily injury. Because of these statistics, insurance companies tend to hike up the prices of new or young drivers as they carry more risk. It should therefore be a priority of any business to look closely at their policies for young drivers, perhaps offering further training or setting an age benchmark.