Many factors play into how much you pay for your fleet insurance policy. The premium largely depends on the level of cover you choose to take out, the types of vehicle you want to insure and information on the drivers that you have in your policy. Of course, the more motors you insure, the more you will tend to pay. Insurers gauge their level of risk by asking you a series of questions on the vehicles you want to include on the policy. The information you have to provide typically includes:
- how many vehicles you have in your fleet
- what type of vehicles they are
- how old they are
- the condition of the vehicles
- how often the vehicles are in use
- what they are used for
- where they are kept overnight.
If you opt for a comprehensive level of cover, you typically have insurance for your drivers as well. If this is the case, the insurance company usually wants detailed information about the drivers on your policy to create a bespoke quote. Factors related to the drivers, which may affect your premiums include:
- whether you want an Any Driver policy or a Named Driver policy
- the number of drivers on the policy
- the age of the drivers
- any previous driving convictions of any of the drivers.
If you want to name drivers on your policy, you have to provide information about each employee that may drive your vehicles, including their age and claims history.
Lowering Fleet Insurance Premiums
Vehicle insurance is notoriously expensive, and fleet insurance is no different. That said, putting in some time and effort in certain areas can have significant effects on fleet insurance premiums. The most effective way for a fleet manager to secure a better deal is to cultivate a strong safety culture within the company, as insurers can offer reduced prices for fleets they consider to be of lower risk. Safety measures to consider include:
Monitoring your claims history
You can request a copy of your claims record from your broker so that you can analyse your company’s claims history and look for any patterns. If there’s one type commonly appearing, or multiple claims by one driver, consider providing your employees with extra training.
Securing vehicles overnight
If you can show that your vehicles are secure when they’re not in use, you may be able to reduce your premiums. Consult your insurer to find out what measures they look on favourably when it comes to reducing the risk of vehicle theft or vandalism damage.
Restricting your fleet to named drivers
One of the most effective ways to reduce your premium is to name the drivers. An ‘Any Driver’ fleet policy offers fantastic flexibility but will typically bump up your premium as the insurer has no information on how risky the drivers are. Insurers consider drivers under 25 higher risk.
Conducting regular maintenance
Encourage your drivers to carry out daily checks on the oil, brake pads and tyre pressure. Keep a service record to identify any issues early on and to keep your vehicles in the best possible condition.
Drivers Paying Excess
Some companies choose to make drivers responsible for paying their excess fees as an incentive to drive safely. An alternative option is to introduce a bonus for staff who don’t need to make a claim, which can encourage safer driving habits.
Adding trackers
Using a tracker can help reduce your premiums, as you will always know where your vehicles are, which encourages drivers to use them responsibly. A black box allows the insurer to assess how safely your employees drive, which can work favourably for your premiums.
Regular training
All your drivers should have regular safe driving courses. Training courses can help your employees drive in a fuel-efficient manner, learn how to drive safely in different weather conditions and spot hazards.
Reducing Unnecessary Features
Reducing the features of cover included on the policy. If any elements aren’t relevant to a company’s specific business use, it can be worth removing these features for a reduced price.
Choosing to pay annually rather than monthly
Most long-term payment plans tend to work out more expensive.
Establish a Long-Term Provider Relationship
Establishing a strong relationship with your fleet insurance provider. This can save you more money in the long run than chopping and changing supplier. Insurers can become actively involved in your business risk management, working with you to implement measures that can mitigate risks to the insured vehicles as well as your drivers’ risk to other road users.
