Vehicle insurance can be a substantial expense. Due to the added risks for business vehicles and the increased coverage of commercial plans, they tend to cost significantly more than standard policies. There are, however, some ways that you can reduce the price of your premiums:
- opt for a named driver policy
- only insure older drivers with good claims history: if you have one or two employees that are particularly prone to bumps and scrapes, it can be more cost-effective to put them on a separate policy, to prevent them driving up the premiums for your entire fleet
- opt for a lower level of protection, such as third party only, or third party fire & theft
- choose less powerful vehicles
- invest in anti-theft measures: secure your vehicles overnight and install alarms and security lighting where you park the motors
- install vehicle trackers
- invest in staff training programmes: you can arrange this in-house or externally. Many insurers look favourably on companies whose employees undertake regular safe driving courses
- choose vehicles that cost less to insure: it may seem counterintuitive to purchase newer cars as they have a higher value, but modern vehicles typically have more advanced security systems, the latest fuel efficiency advancements and present less of a risk of breaking down increase your excess.
By far, the easiest way to reduce your premiums is to foster a proactive safety culture within your company and among your drivers. It is worthwhile communicating with your insurer to find out what measures you can take to mitigate your costs. Insurance suppliers may offer substantial discounts to businesses that invest in regular, approved safe driving courses for their staff, for example.
Indeed, many insurance providers offer risk assessments as part of a policy, where they may be able to suggest improvements you can implement to reduce your risk level and, subsequently, the price of your premiums. Introducing mandatory daily or weekly vehicle checks can help you monitor your fleet to prevent and identify maintenance issues as soon as possible.
Obtaining a Quote
Obtaining a quote online or over the phone can be quick and straightforward, provided you have the right information to hand. Typically, insurers will request the following information:
- details of your trade, company or business activities
- details of the vehicle or vehicles you want to insure, including modifications, annual mileage, make and model
- the type of license you own
- details of any drivers to be named on the policy, including age, driving experience, and claims history.
Summary
Using a car for work tends to mean more time spent per day in your vehicle, at busier times and often on unfamiliar roads. These factors increase the risk of an accident, and thus the likelihood of making a claim. Business car insurance reflects these higher risks to the insurer and tends to be more expensive as a result.
