Minimise fleet insurance price increases in 2023

Inflationary pressures mean that vehicle fleet insurance is likely to become increasingly expensive this year, but fleet managers can take steps to minimise price increases in 2023. Lee Partner, Head of Private Clients and Commercial, looks at how fleet managers can work with brokers to reduce their insurance spend.

Inflation is almost certain to increase the price of fleet insurance premiums this year but claims and damage costs can have a significant impact on the cost of fleet insurance too. Working with your insurance broker to proactively communicate your business’s road safety record can improve the cost of your insurance.

Lee Partner, Head of Private Clients and Commercial, said:

“Rising insurance premiums are unfortunately foreseeable, but there are many things fleet managers can do to mitigate risk and keep control of claims performance. We work closely with many insurers and can advise how to ensure your business gets the most competitive insurance rates.”

Reducing fleet insurance costs

1. Introduce safe driving schemes

Insurers and regulators like the HSE value companies with a more comprehensive risk management strategy. Aside from being dangerous, poor driving can increase fuel consumption by 40%. Improving drivers’ behaviour can have positive results in terms of the costs caused by accidents and increased fuel bills. Formalising a safe driving policy in writing can help foster a safer driving culture amongst employees and consequently reduce the number of accident claims. It also demonstrates a more ethical and caring approach to your employees’ overall safety and well-being. They may prevent premiums from rising if proven to improve your insurance claims history.

Fleet management software is another way of managing your company’s driving record and will help keep insurance expenditure down.

2. Review fleet performance data

Talk to your broker for advice on how to keep your premiums down. They will need information such as your fleet’s accident history to help advise the type of positive safety measures insurers value. Using telematics to check your driver’s performance data can help with this and provide insights into what areas need to be improved. The same data can also be used in discussions with your fleet drivers to encourage safer driving and help your broker negotiate cheaper rates when they renew your fleet insurance.

3. Addressing poor driving

Proactively manage drivers with higher accident rates by introducing additional safety measures on the road, such as driver safety training. Drivers with points on their licence may need extra support to reduce the risk of further penalties.

4. Safe driving reward schemes

Rewarding road safety with incentive schemes for “driver of the month” or “most improved” can be a positive motivator. Introducing individual road safety targets and rewards as part of SMART objectives is another option, with each driver having personal goals depending on their specific role.

5. Plan your fleet insurance renewal

Invest time in preparing information for your fleet insurance renewal. Your broker will appreciate you talking to them in advance because they can advise you on what information insurers will need to renew your premium at the best possible rate. It also gives your broker plenty of time to search the entire market for the most competitive rates on your behalf.

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Kerry London is authorised and regulated by the Financial Conduct Authority. The company is a leading UK independent and Lloyd’s accredited broker, which means that we work with a wide range of niche and major insurers.

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