Boss Lady

Fleet insurance could save your business money: here’s how


Many businesses of all sizes rely on transportation for their operations, this includes both small and big firms. Having your vehicles covered by fleet insurance will be an integral part of ensuring your business remains profitable, and law also requires this in many places.

Vehicles that have been involved in an accident or have just broken down can cost you significantly when off the road. This does not just apply to the tangible repair costs either. The cost of losses occurring from lost business activity, and more importantly productivity during this period can be greater if your fleet is unable to undertake its regular duties, but this can be overcome by opting for vehicle fleet insurance.

Although insurance can be extremely useful in protecting your business, if you were to insure each vehicle individually, this could significantly raise your annual costs. Decades ago, only the largest companies were able to make substantial fleet insurance savings. This is no longer the case as this cover type now attracts more and more customers, primarily due to the cost savings that can be made. This also applies to firms that even have a smaller number of vehicles on their records.

How can vehicle fleet insurance help my company?

Plain and simple, a fleet insurance policy will cover your entire fleet of vehicles all under one policy. Many owners and managers will know how difficult it is to sort between multiple policies simultaneously all with different renewal dates. Having one policy to cover more or less everything will make it a lot easier to manage and keep track of things. Some may think that these are a one-size-fits-all policy, however, fleet insurance for business vehicles is actually tailored to ensure it meets your firm’s specific needs. This includes things like how many vehicles you have and what your annual mileage will likely be. It does not just save big businesses money, as each policy will meet the individual customer’s requirements.

Flexibility with your vehicle fleet insurance cover

Depending on your actual requirements, you could get flexible cover with fleet insurance based on your business’ needs. There are different levels of cover to select from (third party only, third party, fire and theft and comprehensive). These are all available for a multitude of vehicles. Furthermore, some policies will even allow you to cover private and commercial vehicles under the same policy.

Receive discounts for reduced claims

Typically, fleet cover does not offer a no claims discount, but you will still be able to obtain a discount if you have a lower number of claims during the policy term. Those that have a good track record are likely to receive a discount on their premiums over time.

Cut costs by tailoring your fleet insurance policy

You can also cut the costs of cover when you switch by ensuring that your policy suits your needs. It’s a useful idea to understand what you are actually purchasing before committing, having this information beforehand when comparing cover will be very beneficial.

Get fleet cover based on your annual mileage

Most fleet companies normally have a higher annual mileage compared to smaller businesses. Fortunately, you could potentially save on your premium by specifying your yearly mileage to the insurer. Typically, smaller businesses won’t need as many miles as the standard insurance, so make sure to let your insurer know. As a general rule of thumb, the lower the annual mileage, the cheaper your cover will be.

Remove any optional extras you do not need

In a number of policies, cover can allow for company cars or provide additional replacement vehicles. If you know that you will not need these extra add-ons, you can remove these to cut the costs of fleet cover. Understand what you are buying and make changes so you are getting what you will need and likely make use of, this will help you save money. It isn’t worth paying for optional extras that you know you will not use, some of these may even be included under other business policies that you may hold.

Driver training and fleet telematics

Installing telematics devices in fleets will allow you to record data on driver behaviour and vehicle maintenance. Installing these systems could help save your company money as a number of insurance providers will encourage the use of this practice, some even require it. Telematics technology has improved greatly over the years and is now also available to smaller firms at more affordable prices. Your insurance company will be able to review your fleet’s safety, helping lower your premiums if you employ or contract safer drivers on the road.

Check your standard and voluntary excess

Similar to most insurance policies, you can save money by selecting a higher voluntary excess. This shows your insurance provider that you are confident that a claim is not likely to be pursued. Those that have a good claims history can cut a significant amount off their monthly bill. This could be a useful option worth considering. However, remember that you will have to pay the total excess in the event of the claim. So think carefully before setting this too high.

In summary…

Fleet management is never a walk in the park. Sometimes, it can feel like a constant uphill challenge. Whether you are managing cabs, delivery vans, public transport coaches, school buses or any other fleet vehicles, the fleet management approach is usually the same. You will need to have strategies and technologies that will help you succeed in the business. And this is where fleet dvr cameras and any other fleet management solutions from a reliable source come in. For any beginner in fleet management or in any other seasoned company, the highlights above will help to achieve success.

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