8 ways to lower the cost of fleet insurance

21.10.2020

If you run a fleet of vehicles for your business, you’ll need a suitable insurance policy to safeguard your assets and staff. Fleet insurance is a high cost to your business, and prices can vary widely depending on several factors. With 95% of fleet car claims involving some form of driver error, getting the number of claims down is the best way to save on your insurance. Follow the tips below to reduce accident rates, and get your fleet insurance down.

Set your standards for driving

A driver might be perfectly sensible in their own car, but once they’re handed the keys to a fleet vehicle, standards start to slip. Poor driving can reflect badly on your company, especially if your fleet cars show your company’s logo. Therefore, when you take on a new fleet driver, make sure they know your expectations. Give them standardized procedures for events like breakdowns or minor accidents. Gently reminding drivers that you’ll monitor their use, will make them think twice about rushing through an amber light.  

Carry out regular risk assessments

Many insurance companies have in-house risk assessment and risk management teams that can look at your employee’s driving history and highlight any issues. So ask your insurer if it’s a service they offer. It’s in their interest to keep your claims down too.

Offer coaching 

If one of your drivers has an at-fault accident, it might be worth looking at a driver training program. Training courses can identify bad driving habits and get your driver back on the road safely. Most major insurance companies will offer a discount on your premium as a reward for defensive driver training.

Look at your young drivers.

If you’ve got young drivers in your fleet, they may be pushing up your insurance costs. Under 25’s are much more likely to claim other drivers, with drivers between 17-20 twice as likely to claim. Some fleet policies have different rules and restrictions for young drivers, such as higher excesses or driving restrictions during the night. Check your policy and weigh up the pros and cons before allowing a young driver to use your fleet cars.

Take accident-prone drivers off your policy.

Even the best driver can have an accident. Still, if you’ve got an employee that’s regularly making insurance claims and driver retraining hasn’t made a difference, it might be time to take them off your company policy and have them use their own. It might seem harsh, but it’s also necessary. You could have nine perfect drivers, but if you have one that’s putting in a claim each month, your premiums will go up.

Install telematics

Telematic devices aren’t always ideal for fleet insurance, as they generally give a picture of how the cars are being driven, rather than driver behavior. So if your drivers are using pool cars, it’s hard to pin down the worst offenders until an accident happens. However, if you know that your drivers are all only going to use one car each, or you keep strict records on who is driving which car it makes perfect sense. Fitting a black box to your vehicles can help you monitor your employees’ driving habits and prove to your insurance company that they’re driving responsibly. 

Shop Around

It’s easy to let your insurance renew automatically, but taking the time to shop around can make a big difference to your policy cost. Start getting quotes about a month beforehand. If you’re happy with your current provider, you can use the quotes to get a better deal. Whether you switch or stay, make sure you renew on time every time. 

Motivate your team with VouchForMe

Teams work together to achieve a common goal or for a shared reward. At VouchForMe, we apply team mentality and use it to encourage fleet drivers to drive safely. Chances are your employees are already used to working with each other, while also competing. By insuring your fleet drivers as a group, VouchForMe allows your drivers to monitor and compare their driving against other members of your fleet. If the team drives safely, they get a cash reward at the end of the year. VouchForMe’s team insurance leads to lower premiums for your business, cash for your employees, and safer roads for society. 

Interested? Visit how we can help fleet managers to lower the insurance cost with team approach.