Tips for Reducing Fleet Insurance Costs
The past few years have been turbulent for many organisations, and the motor trade is no exception. Spiralling fuel costs, supply chain disruptions and rapid inflation are a few of many issues that have affected the sector. Furthermore, the average cost of motor insurance rose 17.4% last year, according to Insurance Business UK, and may yet rise further amid inflationary pressures. Hiked premiums could be cause for concern for organisations with employees who drive regularly. However, by leveraging simple risk-mitigation strategies, organisations may be able to lower the cost of fleet cover. Consider the following tips:
- Create strict policies—Organisations should create detailed policies relating to vehicle use, including maintenance procedures and what to do in the event of accidents. Every safety incident—no matter how small—should be thoroughly investigated. Furthermore, organisations should update risk assessments at regular intervals.
- Introduce safe driving schemes—When drivers have a safety-first mindset, the likelihood of accidents may decrease, improving an organisation’s claims history. With this in mind, employers should take steps to improve driver safety. Specifically, organisations could create a detailed company guide that outlines safe driving practices and expectations.
- Utilise telematics—Once driver expectations are firmly established, organisations could employ telematics to track driving habits—including speed and braking—in real time. Organisations can use this information to address drivers who don’t meet required standards and help determine training needs, thereby improving overall fleet performance. Furthermore, organisations can leverage this data when negotiating insurance premiums.
Finally, organisations must check that a candidate’s driving licence is clean before employing drivers. Any points or convictions on personal policies can affect fleet cover.
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