Save Money for your business by reducing your fleet insurance cost!
Fleet insurance rates in the fleet sector have continued to rise over recent years… but successful managers know that being tied to higher rates is not always inevitable.
There are a number of steps fleet managers can take to try and minimize their fleet insurance cost. For example, with claims costs often accounting for a substantial percentage of fleet insurance, one of the most effective ways to drive down premiums can be to reduce your fleet accident rates.
With this in mind, here are five useful tactics that could help you reduce your accidents – and even get cheaper fleet insurance rates as a result:
1. Carry out regular assessments
The first step to driving down your fleet insurance cost is to know your starting point. As with any major fleet issue, data is your friend, so ensure that you have plenty of relevant, accurate information to hand.
Talk to your insurer and find out about their view of your accident history, how it compares to other fleets and in which areas it may be weak. Using your own information, compile reports about the kind of incidents that have taken place, the factors that caused them and whether any common issues can be identified.
And don’t just look to the past – ensure that, in future, you are recording comprehensive information about all the incidents that take place on your fleet (not just those that require claims).
2. Enforce minimum standards for driving
Good drivers cause fewer accidents – and that, of course, leads to lower premiums.
As part of your duty of care, you should already have extensive risk management measures in place that cover your drivers. These should include regular driving license checks to ensure that drivers have disclosed any convictions. You should especially take note of higher potential risks such as high mileage and younger drivers.
Here, you are essentially trying to identify individuals and groups that are heightening your accident rate, so take a good look at the data that you have available and try to spot useful patterns. (Fleet management software can be one useful way to pull data together and compile trend reports).
Additionally, try to get your drivers to think about safety. A simple and effective idea is to regularly issue useful accident reduction and safety tips to drivers.
Nearly 90% of motorists would not tell their employer if they received points on their license – RAC Insurance research.
3. Target drivers who don’t meet your standards
Now that you’ve identified drivers who don’t meet your minimum standards or who appear to be involved in more accidents, the question is – what should you do about them?
Adding just a single driver with a poor history to your fleet auto insurance can raise premiums by more than 10%.
You could, for example, institute a series of escalating measures to encourage them to be more safe on the road – measures such as online fleet driver safety training or even in-car tuition can be very effective.
For drivers who have gathered points on their license, you should be looking at their license more regularly than lower risk groups, and offering guidance and practical help about how to improve their on-road performance.
4. Use software & technology
There is a whole range of technology available that can help to improve your accident rate, which will help in reducing your fleet insurance cost.
In the vehicle, telematics and dashboard cams provide evidence that can tell you in detail about how your vehicles are being used in the real world, provide data on which drivers are most likely to speed regularly and brake suddenly – and even help to establish who was at fault in an accident.
“If an individual drives more than 10 – 15% above the average speed of the traffic around them, they are much more likely to be involved in an accident” – ROSPA
Outside the cab, fleet information management system provides a comprehensive solution that can enable you to gather information and analyze it in a thorough and useful manner, creating relevant reports for both you and your insurer.
5. Review before renewing
The benefits of all your work will start to become apparent when you can illustrate that you are driving down your accident rate.
This is the point at which insurers will start to consider bringing down costs. So before you renew, gather as much information as possible to show the strides you are making and ensure that you are keeping an ongoing dialogue in place with your insurer.