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Friday, April 19, 2013

Business fleet insurance: Four ways to save money

Insurance premiums are influenced by insurer evaluation of risk
The size of a "fleet" may be as small as two business vehicles

By Mark/Cover 4 Fleet Insurance

Whether a business is at a start-up stage or it has evolved so that there is a fleet of vehicles to support business growth and management, then there is also an opportunity to save money off the costs of running the fleet. Both the management and vision involved in being a business owner or manager, can be so consuming that it can be easy to miss money saving opportunities such as this one. Let's look at four ways that you can save money by having business fleet insurance and knowing how to make it work most cost-effectively for you. 

1. Getting inside the head of your insurer 

Regardless of whether this is a new aspect for your business, or you have had this type of insurance for some time, one of the most important things you can do right now is learn how to think like your insurer thinks. By getting inside the head of your insurer, you will have the correct mindset to operate the fleet in a way that both benefits you in savings, as well as running it with the best safety practises. Although there are many parts of how fleet insurance premiums are evaluated, the Mother and Father of these are: 

• Have there been frequent accidents?
• What are the costs of the claims, if there have been previous accidents?

In other words what type of risk and track record does your company present to your insurer. Once you start to think like this, you will be on the right route to saving money on the premiums you pay. 

2. Choosing your drivers wisely 

The drivers who are responsible for driving the vehicles have an important effect on the cost of the premium. Ideally your drivers will be relatively mature, both in age and attitude, and if possible also married. Naturally they should have clean driving licenses. If you have already chosen your drivers and some are younger than the ideal, then you can still work with them over time to move them into the lower cost bracket. Essentially your aim is to make all drivers as low risk as possible. 

3. Training and reporting 

Having a team of drivers who are trained also benefits both the cost of the insurance, as well as other fleet costs. Their attitude towards driving can be excellent when trained, in vital areas such as safety, economic driving and also reporting. Reporting an incident or accident of any kind needs to be second nature to the team. This can avoid issues that really don't need to occur, and which could end up being costly, when not dealt with correctly. 

 4. Know whether you can qualify for fleet insurance 

You may be reading this and not currently have fleet insurance. If this is the case, you may qualify for it and this will mean substantial savings in both time and money. There are both fleet insuance brokerages and companies who will qualify companies for their fleet insurance policies when there are only two to three vehicles. Once the vehicles are registered in the company name, what you need to do is search for a company or brokers who have this low entry level of vehicles for business fleet insurance. The next step is to compare the coverage offered along with the premiums, and decide who to choose. 

All of these tips can help you make significant savings, as well as increasing the general performance of your company's fleet. 

About the author: Mark is part of the team at Cover 4 Fleet Insurance, a leading UK brokerage, which organises business fleet insurance for their clients. They have been trading as an insurance company for over 60 years. They pride themselves on a tight combination of value, coverage and excellent, friendly customer service.

Image credit: MobiusDaXter; GFDL, CC BY-SA 3.0