All too often the misconception that insurance premiums must increase year upon year becomes a reality as fleet managers are seemingly faced with a situation outside of their control. What’s more, with the average fleet manager looking at insurance policy premiums that are averaging between 2% and 3% in increases (Peter Loll & Co 2014) such premium changes can be far from insignificant. However there are tangible steps that can be taken to lower fleet insurance and here we explain what they are and how you may be able to implement them.
- Ask for your authenticated claims experience form
This form details your fleet’s performance, typically spanning over the past three years. This form will be required for requesting quotes from other insurance companies.
By asking for this form you are reminding your insurance company to remain on the ball with the policy premium that you are quoted.
- Are you insurers making a profit?
Insurers will be making a set profit from your policy, or they may be just about breaking even. Understanding just how much they either are or aren’t making will give you an idea of negotiation ground. Generally the figure used to be 72.5%, meaning that £72.50 in every £100 went directly to their costs (salaries, overheads, insurance premium tax and so on) however this does differ from policy to policy and from company to company, so do a little research before entering negotiations.
- Do you even have the right cover?
Many fleets opt for the wrong form of cover and in fact the majority would be better choosing fully comprehensive, rather than third party cover.
Other factors to consider is whether you need windscreen cover and whether you should look around for other repairers (as opposed to using the insurer’s nominated company).
- Does your insurer know where your vehicles are based?
Choosing to provide your head quarter address (when this is in a city centre) rather than the address where the vehicles are based can see your premiums rocket. So opt for an out of town company address that reflects your vehicles usual bases. That said if you insurer requests your drivers’ addresses then you are obliged to provide them.
- What is your driver profile?
Whilst the recent legislative change officially outlawed offering females lower premiums the fact remains that such drivers do still tend to result in smaller claims.
Other driver considerations and the associated premiums that they attract are whether your driver has any convictions, their age range and the age of the driver’s partner if they are to be insured also.
- Have you chosen to fit your fleet with telematics?
A select number of insurers will provide a discount for vehicles that are fitted with driver behaviour telematics, so it’s worth researching this option and gathering some quotes to see whether the costs of such equipment would result in significantly decreased premiums.
- Does your company operate a driver training programme?
Operating solid training programmes are a good way of signalling to your insurer that your fleet operators continually improve upon their driving and as such can help drive your premiums down.
- How stringent are your policies?
Stringent policies and procedures that follow up after a driver accident are vital for establishing a proactive culture that fosters responsible driving and can help reduce the frequency of accidents.
- What does your company culture do for your fleet?
A work culture that focusses upon safety is absolutely vital for ensuring that drivers are ever mindful of their and their vehicle’s safety. This should very much work from the very top of the company downwards, all the way from the managing director through to the fleet staff.
- What type of vehicles make up your fleet?
When listing your vehicles you should consider starting with the everyday vehicles first (opting to place your vans at the top, rather than the flashy executive cars that may well put an insurer off quoting completely).
If you want help with your fleet insurance then why not contact us today ?