Individual Insurance

The cost of operating a fleet can be considerable. A motor fleet insurance policy helps reduce the cost of maintenance and accidental wear and tear. And to make even more gains, you can apply the tips discussed here to ensure an affordable premium on your motor fleet insurance.

Minimizing premium when buying motor fleet insurance

The first step to buying the right insurance is understanding your needs. Small- and medium-sized fleets may not require their own damage protection. Instead, you can go to local mechanics for smaller issues. Alternatively, if you do need insurance, opt for a comprehensive policy for a small fleet; covering third-party liability is mandatory.

Research available policies or take the help of an experienced insurance broker like SecureNow. Also, you could speak to the insurer about a tailor-made policy. Indeed, a retainer relationship with insurance companies means a better price for you.

Additionally, combining policies also reduce the premiums. For instance, you can combine public and employee liability to reduce premiums.

Keeping premiums low at the time of renewal

Conduct research

Work with a broker to compare premium amounts, discounts, etc. Remember, any additional information will help you negotiate better with your insurance company.

Maintain your fleet

Use a fleet that has low value and requires less maintenance. Or if you have high-value vehicles, prioritize them and try and appoint drivers with a good track record for such vehicles.

In your vehicles, consider installing cameras to improve on-road navigation. Furthermore, it will help in better assessment of accidents. Vehicle trackers can help you monitor your employees’ driving and trace stolen vehicles. In addition, when parking for long durations, you can employ equipment to immobilize vehicles. Similarly, alarms will help ensure safe parking, safe long drives, and increase vehicle protection.

Don’t invest in extras unless essential. For instance, you don’t need to buy a risk cover for windscreen or parts which cost less.

Due diligence on employees and records

Note your drivers’ driving style, age, experience, and driving license. Remember that if your driver does not have a valid driving license, the insurer will not pay the claim. Also, set up training programs for drivers that include defensive driving and advanced techniques. Another important task is to get complete police verification done for all drivers. Additionally, inform them that you are monitoring accidents.

Drivers who are prone to accidents should be insured separately and not as part of the fleet insurance. This way, even if you have to make claims for this driver/vehicle, it won’t increase the fleet insurance premium.

It helps to report your claim as soon as possible since delays could increase the insurer’s expense on replacement. This will reflect poorly against you. Equally important, keep records of your claim history and use them to improve the performance of your fleet. In fact, you can note areas for improvement and communicate these to your employees.

Case study: Separate insurance for accident-prone drivers

A motor company had a fleet of 50 commercial vehicles. It insured the entire fleet through a comprehensive motor fleet insurance policy.

All the company’s drivers, including X, were given appropriate training. However, employee X had only a few months of experience and met with an accident. The windscreen and headlights were slightly damaged and there was a dent in the vehicle.

The motor company decided not to claim the dent, the repair of which is negotiated with a local mechanic. If the company had made an insurance claim, the insurers would have denied the premium discount of 15% next year.

In addition, the company studied the pattern of X’s driving and realized he was a little careless and could someday have a more serious accident. Therefore, they took a separate employee insurance policy to cover his injury and any damage to his vehicle.

 

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