Fleet Insurance – How to reduce costs
Everyone likes to get good value for money. This is why one of the questions we are often asked is how you can get cheaper fleet insurance. This section of our guide will give you lots of advice on what to look out for when you are trying to reduce your insurance costs.
Check whether a fleet insurance policy is the best option
If you only have a few vehicles in your fleet, it may be cheaper for you have individual policies for each of them rather than insurance for all of them. One of the reasons for this is no claims discounts. Fleet insurance policies don’t typically offer no claims discounts because when multiple vehicles are insured the chances of there being a claim is high. You may find that if you can get a no claims discount on one or more of your vehicles, it may be cheaper to have individual policies on them rather than a single fleet policy.
Only buy the fleet insurance cover you need
It may be easy to go for the maximum level of cover on your fleet insurance, but this is unlikely to be the cheapest form of cover. If the value of your fleet is relatively low, third party car insurance may be the best option because the value of the vehicles doesn’t warrant having comprehensive coverage. If you don’t allow employees’ family or friends to drive your vehicles, don’t pay for cover for them. Taking the time to tailor an insurance policy to your precise requirements could save you money in the long run.
Be realistic about your fleet insurance requirements
While it makes sense to not pay for fleet insurance cover you don’t need, skimping on your cover could be a false economy. For example, if you have a large fleet where you change vehicles frequently or have a business where employees could be driving any of a number of vehicles, it may make good sense to have a policy with ‘any vehicle’ and/or ‘any driver’ cover. While this may not be the cheapest in the short term, its flexibility could save you money in the long run as you’re unlikely to have accidentally invalidated your cover by having cover that’s too specific.
Restrict who can drive your vehicles to get cheaper fleet insurance
Having ‘any driver’ fleet insurance cover may be the easy option but it is not always the cheapest option. Here are some things to consider when it comes to the people who drive your vehicles:
- only allow people over the ages of 25 or 30 to drive your vehicles
- Only employ people with clean driving licences.
Improve the security on your vehicles to get cheap fleet insurance
Just as with standard car insurance, the security of your vehicles is important when it comes to the cost of fleet insurance cover. Consider where your vehicles are parked overnight and think about how you could make them more secure.
Use technology to lower your fleet insurance premiums
There are three popular options to consider when it comes to using technology to reduce your fleet insurance premiums.
Install dashboard cameras in your fleet
The first is dashboard cameras. If you can install dashboard cameras to your vehicles, many fleet insurers will look favourably on this and reduce the cost of your fleet cover.
Reduce your fleet insurance by using telematics devices
The second is telematics devices. Telematics devices monitor drivers’ habits so you can check they aren’t driving too fast or for too long and take action if they do. Some also have accident sensors which can help when trying to find out if an accident was an employee’s fault or not.
Fleet insurance providers love trackers
Thirdly, if your vehicle fleet is high value or you carry high value goods in your vehicles, trackers can be a good idea. Trackers help to find a vehicle when it is stolen and is something that fleet insurance providers like to see.
Help your drivers to keep your insurance costs down
One of the best ways to keep the costs of your fleet insurance down is to make sure your drivers are less likely to cause accidents. There are several things you can consider.
- Invest in advanced driving courses for your employees so they become better, safer drivers who are less likely to cause accidents
- Be proactive when it comes to enforcing the legal limits on how long drivers can drive before they need to take a break
- Put a driving policy in place to ensure all drivers take regular breaks when driving, even when they’re not covered by legislation, so they can keep concentration levels high and reduce the risk of driving dangerously
- Install hand-free mobile kits in your vehicles so drivers aren’t tempted to use their mobiles while driving, even though it is illegal
- Make drivers pay the excess on any claims for accidents or incidents that are their fault so they are less likely to take unnecessary risks when behind the wheel.
Keep your vehicles in good condition to minimise insurance costs
Well-maintained vehicles are less dangerous and less likely to cause accidents. Make sure your vehicles are regularly serviced and looked after. If you can, avoid any unnecessary modifications to your vehicle. Just as in standard car insurance, fleet insurance providers are likely to penalise you for making changes to your vehicles.
Cap your vehicles’ annual mileage to get cheaper fleet insurance
If it is practical to do this, agree a cap on the mileage your vehicles will do in a year with your fleet insurance broker. The fewer miles your vehicles do, the less likely they are to be involved in an incident or accident so the less likely you are to make a claim and the cheaper your premiums are likely to be.
Get to know your claims performance to reduce your insurance premium
Your fleet insurance provider will keep a record of all your claims on your policy. You should make sure you have a copy too. It will help you spot trends in your claims – is one employee making a high number of claims? Do you claim for the same type of incident each time? When you can see the trends, you can take action to try to reduce them. Doing this should help to reduce your fleet insurance premiums too.
Increase your voluntary excess to reduce your fleet insurance costs
Increasing the amount of excess you are willing to make on a claim is a standard way to reduce the cost of standard motor insurance. It is a standard way to reduce the costs of fleet insurance premiums too. The more you are willing to pay towards any claim you make, the cheaper your premiums are likely to be.
Pay annually rather than in instalments
As a general rule, you will find it is cheaper to pay for your fleet insurance in one lump sum rather than in instalments. If you can afford to do this, you may find that your insurance premium is lower.
Compare fleet insurance policies to get cheaper cover
Of course, one of the best ways to get cheaper fleet insurance is to shop around. Using the quotation tool helps you find a range of policies so you can choose the one which best suits your needs.
Compare Motor Fleet Insurance
It’s now time to get the policy that’s right for you. Use our online comparison tool to compare fleet insurance and start saving today.
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