10 tips to cut the cost of your fleet insurance

As a business you’ll know the pressures that exist to find ways to cut costs, and fleet costs can amount to one of the highest cost centres for many.

To reduce your fleet insurance premiums, you need to find ways to reduce risk and there are several ways to do this…

1. Risk management

It all starts with risk management. To enable you to cut the cost of your fleet insurance you can speak to your insurer and between you analyse your claims history to highlight any areas for improvement. By focusing on improvement in these areas you will also in turn reduce your risk and can achieve maximum profit due to minimised errors.

It is important to also communicate to your drivers that you are monitoring accidents and will take action where necessary. Having set KPIs in this area provides something measurable to work towards and improve upon.

2. Choice of vehicles

Fleet insurance costs can be determined by the make, model, age, and engine size of the fleet cars that you choose to implement within your fleet. Consider security and safety features such as AEB, electric or hybrid vehicles, and vehicles with low CO2 emissions to help reduce your premiums.

AEB, for example, leads to a 38% reduction in rear end crashes at low speed.

3. Ensure your vehicles are properly maintained

To reduce accident frequency regular vehicle maintenance is key. Keeping vehicles safe and roadworthy is half of the battle so your drivers should be carrying out daily checks on tyre pressures, oil and brake performance as well as keeping a record of when servicing is due.

4. Overnight storage of vehicles

Unfortunately alarms alone do not protect against an experienced thief, so immobilisers are recommended in addition to this as well as keeping as many as possible of your fleet vehicles in a garage or compound overnight or when not in use. Sometimes it is even worthwhile providing a storage area in a different postcode area to discourage theft or vandalism and take advantage of reduced premiums.

5. Driver training

Driver training should be an integral part of your fleet management programme in terms of reducing risk and lowering the cost of fuel, maintenance and insurance premiums.

By working closely with your insurer, you can ask if they offer driver training programmes and/or provide discounts for actively investing in defensive driver training programmes. Although some insurers may not do this you will certainly benefit from an improved claims record which will be recognised and considered when your premiums are reviewed.

Investing in driver training in many cases sees a drop in insurance premiums of as much as 5-15% and a 20-22% drop in accident rate, which is well worth considering. When you consider that one in every three accidents on the road involve a company vehicle then investing in your driver’s safety also has a large part to play here.

6. Motivate and reward your drivers

Motivating your drivers to perform well is an effective method of reducing risk and accident frequency to impact positively on your fleet insurance costs. Focusing on the positive and rewarding achieves good results and by implementing a recognition scheme you can encourage all drivers to make improvements in their driver behaviour.

Rather than rewarding drivers for short spells of irregular excellence it is also advised to encourage a long-term culture of safe driving.

7. Driver selection

It is vital that your recruiters understand the nature of the driving task expected for the appointed role.

Good hiring decisions will mean that you end up with the best drivers operating your vehicles and representing your business. It will be much more cost effective and safe to identify weaknesses in character or driving ability before a driver has been recruited. Remember that most fleets will recruit their problems through their drivers and adopting a thorough recruitment process will help to identify potential issues early on.

8. Invest in vehicle security

By installing certain security measures, you can command a lower premium with most insurers. Not only will this help with insurance but also the lost of a vehicle or tools and materials will result in lost revenue and potential lost business. Read our advice on ensuring your commercial van security.

9. Use camera technology

By installing a forward-facing dash cam for your fleet vehicles, it is proof to insurers that you are taking a positive step towards risk management. With the use of a dash cam you have no uncertainty when it comes to proving liability and you will also experience a much faster claims process.

Cameras also act as a strong deterrent against poor driver behaviour. Knowing that they are being constantly monitored with camera evidence, drivers become much more conscious of their driving behaviour and improvements are often seen.

10. Fast track claims

Whilst incidents cannot be eliminated, they can be well managed, saving you money on your fleet insurance. By having a claims procedure in place and submitting an incident report form quickly any damaged vehicles can be repaired quickly and put back out on the road as soon as possible with minimum downtime accrued to the business. By providing your insurer with key information as soon as possible you will give them the best chance to defend your position and keep third party costs to a minimum.

For more information on keeping your fleet car insurance premiums down click here.

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