1. Choose the right level of cover
You should consider what your biggest risks are very carefully when you’re taking out a fleet insurance policy. In most cases, a comprehensive policy is the best option since there isn’t a huge amount of difference in price between comprehensive and third party. You should also consider what additional levels of cover are most important to your business. Getting breakdown assistance for your vehicles is never a bad idea. Public liability insurance is another type of cover you should strongly consider, especially if you have a large fleet.
You should try to strike a balance between getting a policy that’s affordable and having cover that properly protects your business.
2. Make your vehicles secure
Proper fleet vehicle security is a must if you want to keep the cost of your premium to a minimum. You should ensure that your vehicles are parked securely when not in use and ideally that they’re fitted with tracking devices and alarms. You should also train your drivers so they know not to take proper precautions while on the roads so your vehicles aren’t put in danger of being broken into and stolen.
Taking measures like this will go a long way to reducing the price you pay for a fleet insurance policy.
3. Make your premises secure
If you take out a combined policy that covers your premises as well as your vehicle, then the security of your premises will have a big impact on the cost of your policy. In order to keep the cost of your insurance to a minimum you should take any steps you can to make your premises secure. This means installing CCTV and a security alarm. Secure fencing is also highly recommended. If you run a business such as car showroom or auction house then you should ensure that any highly valuable vehicles, such as sports cars, are kept indoors and not on the forecourt.
4. Be selective with your drivers
One of the best ways to save money on fleet insurance is by being selective with the drivers you hire. Drivers over the age of 25 are nearly always cheaper to insure compared to younger drivers so it’s a better to go with experience. You should also ensure that any drivers you hire have a good deal of experience driving the type of vehicles your company operates as well as having a clean driving licence.
5. Enforce strict policies and procedures
Being selective with the drivers you hire is always recommended but it’s not enough to stop there. You should also make sure that you foster a culture where accidents are not viewed as something to be taken lightly or ‘just part of the job’. If one of your drivers is involved in a collision then you should make sure it’s investigated properly. Find out exactly what happened, who was to blame and how it can be prevented in future.
6. Provide proper training
Providing training that’s specific to your company is an excellent way to save money on fleet insurance. If your drivers undergo regular training to help prevent accidents then always be sure to tell your insurance provider about it. Insurers know that the biggest risks come from drivers themselves so if you can show that your drivers are experienced and well-trained then they’ll certainly be willing to offer you a lower price for your insurance.
7. Fit vehicles with telematics
Fitting your vehicles with driver behaviour telematics is a very worthwhile step to take when you’re trying to save money on fleet insurance. Always be sure to inform your insurance provider when your vehicles are fitted with telematics. How you save money will vary depending on your insurance provider. Some providers will offer an upfront discount simply because you have telematics fitted; while others will want to see how driver behaviour has improved over time.
8. Increase your excess
A somewhat risky way to lower the initial cost of your fleet insurance policy is to increase your excess. Excess is simply the amount you’d need to pay in the event of having to make a claim. If you do decide to increase your excess then you should make sure it doesn’t come back to bite you. Always keep it to a sensible amount and base it on how likely you think it is that you’ll need to make a claim.
9. Pay annually
An excellent and often underused way to save money on fleet insurance is to pay for the policy on an annual basis as opposed to month-by-month. Of course you will pay a lot more upfront this way but when you pay for a whole year at once, your insurance provider will be very happy to negotiate a lower overall rate. This isn’t practical for all companies, especially those with very large fleets to insure, but if you can pay for your insurance this way then it’s an excellent way to lower the overall cost.
10. Get a lot of quotes
The most obvious way to ensure that you get a good price for fleet insurance is to get quotes from as many different insurance providers as you can. You should never simply take out a policy with the first insurance provider you contact since you have no way of knowing if you could get a better deal elsewhere. When it comes to getting quotes from different providers, it’s easier now than it’s ever been. cheapfleet.co.uk is a fleet insurance comparison service that enables you to get quotes from multiple providers simply by providing some information about your business and your insurance needs.
Having multiple quotes at your fingertips means you can compare them easily and pick out the policy that offers the level of cover you require and at a good rate.