Although insurance is a necessary part of business, there are ways to reduce the cost of policies. Whether you’re a business who is looking to insure HGVs, minibuses, taxis, vans or simply company cars, everyone wants to save. Below we break down 5 factors to consider that can cut down the cost of fleet insurance.
Make sure vehicles are stored safely
Another factor that really affects the price of fleet insurance is where the vehicles are stored when not in use. Vehicles properly locked away in secure locations (e.g. garages or company car parks) typically have lower insurance premiums as the risk of criminal damage is much lower. If you don’t have anywhere to safely store the vehicles away from the general public, consider investing in this as it can save you a lot of money in the long run.
Install safety features
The more safety features your vehicles have, the cheaper the insurance premium. Safety features include add-ons such as alarms, immobilisers, vehicle trackers and more. Vehicle trackers are especially useful as not only do they tell you where a stolen vehicle is, they can be used to monitor how well your drivers are operating on the road. Safer drivers lead to cheaper insurance.
Properly vet your drivers
The type of drivers you hire can really affect the price of insurance. Factors such as age and experience are used to determine your premium. Make sure you are hiring drivers with clean licences – no points, no convictions on their personal insurance policies, etc. Enforcing minimum standards for driving on job applications can help you to comb through those who could cause potential issues that would increase your premium.
If you already employ a driver with previous convictions, do NOT hide details of these from your insurance provider. If the driver is in an accident, this can cause complications further down the line and can even mean your insurance provider cannot provide compensation. Further driver training can help to mitigate this issue.
Whether or not you use cameras in vehicles can ultimately change the outcome of a claim – it’s very clear evidence of what happened in an accident. As a result, this can bring your insurance premium down. It’s more about safety than surveillance of your drivers.
Analyse potential risks and areas for improvement – fleet insurance experts can help with this by carrying out a risk assessment. Make employees aware that you will be monitoring how they drive and potentially investing in further training for them if their driving standards are not up to scratch. Regular assessments can help you to continuously review how you can reduce your premiums year on year.
There are several actions you can put in place to reduce your fleet insurance premiums. Looking into the above points can help you to save money moving forward and put your business in a better financial position. Remember, it is not about cutting corners and underinsuring yourself, but more about saving money!