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How businesses can save money on company car insurance

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In the UK alone there are over 1 million company cars which businesses use to offer incentives for staff, ensuring that the worry of paying for gas, tax and insurance is removed. Naturally for the businesses who use company cars, they will be looking to keep these costs as low as possible and central to tackling the issue is working out how best to save money on car insurance. Of course, comparing car insurance quotes will save you money, but there is much more which you can do to bring costs down. Here are some tips to help you and your business save money on car insurance for the company cars for your staff.

The youth issue

One of the biggest reasons why car insurance often costs so much for businesses is because car insurance providers will give much higher premiums for those under the age of 25. Most businesses cannot say definitively that they will not need need cover for the main driver or the additional driver who is under the age of 25, so they must cover all bases. In order to get the car insurance costs down in relation to younger drivers, it would be more cost effective for the business to invest in sending their drivers on courses such as Pass Plus, a more comprehensive driving course which costs just a couple of hundred pounds. Once a young driver has completed this, car insurance will significantly lower their premiums.

Fleet policy

If you have a large number of cars within the business then you should most certainly be looking at purchasing a fleet policy, and placing them all under the same cover. This will save you a great deal of time in terms of paperwork, admin and renewals as well as helping you to reduce the overall costs of insuring your company cars.

Telematics

Another key factor behind the price which the car insurance provider will offer you, is the heavy mileage which the cars will be doing, thus heightening the risk of something happening on the road. In order to do your bit to give the most accurate figure possible for your fleet of cars or vans, you could consider getting a telematics box fitted to the vehicle. These boxes are no bigger than a smartphone and they will track the mileage, as well as details such as braking, speed and acceleration. Because this gives the most accurate reading for the insurer in terms of how the vehicle is being used, they will very often reward the company with a discount at the end of the year, assuming that it has fallen below what they expected. This is particularly helpful for haulage or transport companies, and can really save them a lot of money.

Don’t simply accept what you are paying for your company cars, review your costs and use these tips to try and bring it down a bit.

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