14 Tips to cut the cost of insurance Insurance premiums have continued to rise Comparison figures for commercial insurance are hard to come by, but consumer comprehensive insurance has gone up by a staggering 40% between March 2010 and March 2011, according to the AA’s British Insurance Premium Index. However, there are actions fleets can take to control costs. There are two factors controlling premiums. One is claims history; the other is putting together a convincing package of measures which will convince an underwriter your future risk will be lower. Tim Carder, underwriting director for Towergate Underwriting Transportation, says: “I want to hear a positive story which convinces me to offer a competitive rate – but you have to be serious about risk management. Paying lip service to it doesn’t work.” Best practice advice from the insurance sector to keep your premiums low 1 Risk management begins with risk assessment Work with your insurer to analyse your claims history and highlight areas for improvement. “Make employees aware that you will monitor accidents and take action where necessary, such as retraining,” says Richard Flint, head of transport at North Yorkshire Police. 2 Driver training Many insurers offer driver training programmes through partners – such as Zurich with suppliers like Greenroad – and all will take into account defensive driver training. Not all insurers give upfront discounts but an improved claims record should be swiftly recognised. 3 Manage young drivers Mike Smith, commercial motor technical manager at Aviva, makes the point that young drivers, aged 17-20, are twice as likely to make an insurance claim as any other driver, and on average the claims cost will be three times higher, and 10 times more likely to involve severe bodily injury. “Look closely at your policies for young drivers. Many young driver claims happen at night, so are young drivers allowed your vehicles for personal use? Review your procedures for training young drivers,” he says. 4 Combine insurances Insurers like Fusion, part of the Towergate group, offer combined public liability, employee liability and fleet insurance. This can offer economies of scale,” says Carder. 5 Use camera technology Forward facing cameras can provide invaluable data for defending claims or swiftly settling at-fault claims. They are particularly effective against crash-for-cash scenarios; organised fraudulent vehicular claims currently costs the industry £350m a year. 6 Renew policies in good time and after proper review Don’t pay for unnecessary extras. “Don’t take windscreen cover; it’s as cheap for you to replace as for your insurer, so why pay the middleman?” says Fleet Cover broker Paul Greenwood. 7 Self-insure – or at least raise your excess “We only cover for third party,” says Phil Redman, fleet manager at IBM UK. 8 Provide good vehicle security “We pay a lower premium because we have Cybit trackers hidden in every van so if it’s stolen we can pinpoint its location instantly,” says Rob Paddock, logistics and distribution manager at Commercial Group. 9 Telematics The business case for telematics in car fleets may be less compelling than for vans and HGVs – but, says Carder, “if you have it, make sure you put the time in to exploit the health and safety benefits”. Action to take to reduce the cost of insurance claims 10 Claim fast (part one) Mike Smith, commercial motor technical manager at Aviva says: “The average cost of bodily injury claims is increasing by 30% every year. Ensure drivers report claims, especially fault claims involving third parties, immediately. It really is case of every hour counts.” In cases of injury, insurers often even have preferred doctor and rehab arrangements, where costs can be controlled. 2 Claim fast (part two) Even in non-injury cases, third parties can be given expensive credit hire vehicles which are then charged back to your insurer. The sooner you claim, the more control insurers have over costs. 3 Claim fast (part three) The Ministry for Justice brought in new rules, giving insurers 15 days for information gathering leading to fast, non-litigious resolution. Break the deadline and costs spiral. 4 Be honest and encourage drivers to be honest Tim Carding, underwriting director at Towergate Underwriting Transportation, says: “If you are at fault say so. The longer you fight a battle you know you’ll eventually lose, the more it costs.” 5 Tracking can help with this speed as well as duty of care Paddock says when one of his vans had a collision: “I was there before the police were because the tracking pinpointed it to a couple of yards.” fleetnews.co.uk/fleet-management/14-tips-to-cut-the-cost-of-insurance/39928/page/2/
Posted on: Wed, 17 Sep 2014 13:54:02 +0000
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