One thing that we all have in common is the fact that we don’t like paying our insurance each and every month. For so many people it feels like a waste of money, a value that is only realised when a claim is made, when you need it most. Despite not liking the burden of insurance payments the vast majority of us seek the peace of mind that insurance affords us and would never consider not having insurance.
There are some practices that you can implement to limit the amount of money that you are paying towards your business fleet insurance, making it more manageable. Here are some of the essential tips on how to cut costs on your insurance premiums:
Driver training courses assist business fleet Insurance owners effectively manage their drivers and this ultimately has an impact on the costs associated to insuring the fleet. Whether that business be a courier fleet or cleaning contractors the benefits of driver training are there for all to see. The biggest problem for fleet owners to overcome is that employees inevitably treat company vehicles differently than if they were there own as it is unlikely that they will suffer any financial loss as a result of an accident. Driver training in a courier fleet for example would provide those drivers with an increased level of competency, reducing the likelihood of an accident occurring and protecting the business against higher insurance premiums. If it is company policy for drivers to have advanced you may also see underwriters look favourably upon this.
Telematics is currently used in haulage fleets and young drivers but the benefits of installing telematics into your fleet of vehicles will change the way you manage your fleet. In haulage fleets the devices are used to manage driver safety, efficiency, security and productivity. With regulation stating drivers can only be at the wheel for a certain number of hours a day this can easily be monitored. Haulage fleets can also use these devices to monitor speeds at which vehicles are moving, which can help with safety but also fuel efficiency, which in large fleets can significantly reduce costs. This can also apply in other sectors such as courier fleet. In the self drive hire sector telematics are used to monitor vehicle locations and have been instrumental in reducing the risk of theft as well as vehicle recovery.
There are many ways in which telematics can drive down insurance costs for businesses.
Choose Your Fleet with Care
Fleet insurance is heavily influenced by the types of vehicles within the fleet itself. There are some obvious factors to take into consideration such as the engine size and modifications but there are other factors as well. An example of this is that Tesla are known for being tax efficient company cars but they are notoriously difficult to insure. With some models having a ‘ludicrous mode’ that goes from 0-60mph quicker than it took me to right this sentence underwriters and insurance companies are somewhat put off by the risk that presents. Tesla also retain ownership of the battery packs which creates a new problem for the insurer to consider. These factors drive insurance premiums upwards and are factors that should be considered before purchasing.
Driving with due care and attention at all times is the best way to reduce the number of accidents within your fleet of vehicles and keep insurance costs low. Underwriters will always determine risk based on previous years claims experiences.
Whether you buy company car insurance, courier fleet insurance or any other fleet insurance policy there are always ways in which you can reduce your insurance premiums. You shouldn’t need to reduce the level of cover you receive to achieve this. Working closely with your insurance broker to better understand what insurers and underwriters look for is the best place to start and at M&P Insurance Solutions we will take the time to tailor a policy to your specific needs.