Motor Insurance affects most people in the UK, with over 41 million vehicles on our roads. Over 5.2 million are commercial vehicles, including light vans, HGVs, buses and coaches. At Reason Global, we place many motor fleet insurance policies for our clients, predominantly for light vans and HGVs.
We all know that the cost of living has increased substantially since COVID-19, inflation has been higher than the previous years, and this has had a knock-on effect on the cost of motor insurance. You may have heard or read the reference to “Claims costs inflation” in the press, and this mainly refers to how much vehicle repairs now cost, which is a big issue for a motor insurance company. Over the last five years, vehicle repair costs have increased by over 40%, driven by material and labour costs. Modern vehicles are fitted with more and more technology, which can also be costly to repair or replace.
Accidents do happen, so it is, therefore, crucial that removal firms make every attempt to minimise these risks in their motor fleet and present a positive picture to insurers when approaching them for quotes. Andrew Smith looks at the current landscape and what can be done to achieve the best value-for-money for motor fleet insurance premiums…
Dash-cams are relatively low cost, and the footage can be invaluable when accusations are thrown at drivers following an incident. Dash-cams can also have a rear in-cab facing camera, which monitors drivers’ behaviour, knowing that unacceptable or unsafe practices will be caught on film can improve their driving decision making. One thing to keep in mind with dash-cams is that they can also prove fault, so fitting these in conjunction with other risk management practices is key.
There are many vehicle-tracking systems on the market. Vehicle trackers are useful in the event of vehicle thefts for re-locating the vehicle, which is something that insurers are keen on. Live-tracking systems are used by many of our Removal industry clients. Not only do they enable a lost or stolen vehicle to be located but they can be used to monitor vehicle use, program jobs, optimise routes, comply with regulatory guidelines and can help save on fuel and maintenance costs.
Keeping a vehicle properly maintained is essential for the legal and good running of your business; properly maintained vehicles also react better in emergency stop or collision avoidance situations that can happen. Having a clean and properly maintained vehicle will also make your drivers more likely to take better care of the vehicle while presenting your business to the public at its best on the roads.
It is also essential to keep your vehicles’ physical security in good order, improving security can also create a deterrent to thieves, as will observing good practices for the use and security of vehicle keys and key fobs.
Various driving schemes exist, and this one was the first to be introduced in the UK in 1995. These schemes provide an opportunity for other road users to positively impact driving behaviour, enabling potentially hazardous situations to be diffused, and helping drivers become more aware of their driving style. Having ‘How’s My Driving?’ stickers on a vehicle can help to remind drivers to concentrate on their driving style, hopefully raising safer driving standards and avoiding collisions. Showing your company cares about its drivers and the public will help your brand’s image on the roads.
In some cases, such as fleets with a high number of incidents, insurers may ask for driver training to be put in place to enable them to place or renew cover. Driver training can carry a stigma, with employees taking offence or thinking that they are not trusted, but as well as promoting safer practices, training can also reduce fuel and maintenance costs for fleet operators. However, these courses can be costly, especially for fleets with many drivers, and would probably be considered a last resort.
Some businesses choose to reward good driving or penalise bad driving. If this reduces the number of claims on the policy, then this can only be a good thing, but do think about your drivers before deciding to implement any of these.
Examples can be:
To achieve the best possible motor fleet insurance premiums, keeping a well-managed fleet with low claims frequency and costs is key. There are some things you cannot change, such as the number of vehicles your business needs to operate, or the location where the business is based, but managing risk and reducing claims is something we can all aspire to. Armed with your claim-free, confirmed claims experience, we can approach our panel of motor fleet insurers and negotiate the best possible terms for you.
You can download a copy of this guide to share with colleagues and employees, and see if your business can unlock more value in your motor fleet insurance.
At Reason Global, our brokers and claims handlers take pride in assisting our clients on any claims they may receive to ensure the process is as painless as possible. Get in touch to learn more.
