15 Fleet Insurance Tips to Cut Costs But Be Safe

1. Require clean driving records – Fleet insurance underwriting processes require a list of employees that will be driving each class of vehicle. Hiring practices must include a check of the driving record for each person who will drive a car or truck for business reasons. Prior to hiring an employee, the manager should acquire a copy of the applicant’s driving record directly from the DVLA.

Accidents and moving violations reveal the driving habits of the individual in the past three years. Insurance companies place the company cars insurance policy in a higher-risk class of policies if drivers on the policy present greater risk of claims. Not providing the driving records of every driver can provide cause for the insurer to deny claims.

Some employers provide incentives for drivers to practice risk-lowering driving habits throughout the year. Positive reinforcement for embracing best practices produces better results than punishing a driver for non-compliance.


2. Develop written safety policy – Efforts to mitigate risk are rewarded when insurance companies have proof that the policyholder embraces safe practices. A corporate safety policy associated with use of company vehicles reduces the probability that losses will occur. Insurance companies reward companies with a written safety policy in place through lower annual premiums for company cars insurance.

3. Manage risk actively – During the annual review, insurance claims should be reviewed for patterns that can be corrected. Insurance companies offer suggestions that should be implemented to reduce risk going forward. In some cases, the insurance policy will be reevaluated and reclassified. Premium savings occurs when businesses seek to reduce the risk of loss through better business practices.

4. Embrace camera technology – Mounted cameras on every vehicle provide useful film footage when fault is determined. Fraudulent claims against a business can be expensive in damages and premium increases going forward. Many businesses are having forward-facing cameras installed to provide invaluable information concerning collisions, vandalism and theft allegations.

5. Secure vehicles – Fenced areas, locked garages and theft-avoidance devices reduce the risk of vehicle theft, vandalism and misuse. Employees listed on the insurance policy should be the only ones allowed access to the fleet area. Insurance companies offer lower rates to businesses that retain control over the fleet vehicles. Monitored surveillance systems and a security force offer the optimal levels of control over access to the vehicles. Risk of loss is lower when the business owner refuses to allow unauthorized access to the company fleet of vehicles at any time.

6. Employ telematics – Integrated use of telecommunications and informatics in every vehicle reduces the risk of loss. Installation of these systems in every company vehicle tracks the location and condition of the vehicle at all times. Insurance companies encourage these systems because valuable information is gathered during operation. Drivers can use the system for guidance and security in all situations. Technology is helpful when attempting to reduce occurrences of distracted driving because of unfamiliarity with the vehicle, surroundings and traffic conditions. Under normal circumstances, the employees must embrace risk-reducing driving habits that protect the vehicle and occupants. Fear of job loss should not affect the employee’s decisions when using a company vehicle. These important recommendations will reduce the number of claims filed each year.

7. Provide driver training – Insurance companies track the driver training programs offered throughout the UK. Effective programs are supported through recommendations from major insurers. Companies are wise to ask for referrals before signing drivers up to complete driver training courses. Participation in a driver training course improves defensive driving skills, which decrease the probability of collisions. Drivers will be more confident in inclement weather and dense traffic following the classes. Ongoing training is essential for those who drive for hours each week.

8. Oversee inexperienced drivers – Long-term business plans will include hiring drivers without extensive experience. The insurance company will offer suggestions for reducing the amount of risk presented when inexperienced drivers are on the team. All recommendations should be followed and reported to the insurer whenever the company fleet insurance policy is renewed.

Active training must be provided to every inexperienced driver to impart best practices. Knowledge of company policies will ensure that new drivers are equipped to be safe on the roads.

9. Encourage honesty – All employees with driving responsibilities must be rewarded when following recommended practices behind the wheel and when parking the vehicles. Prompt reports concerning damage to the property is essential when attempting to control insurance costs. Mistakes will happen when using company property. Honesty must be encouraged when striving to control the costs incurred throughout the business fleet. Damage to property can be handled through various means when the employee reports issues immediately.

Insurance-Related Tips

Lower annual insurance premiums are possible when the insurance shopper makes wise choices before signing the contract. A comprehensive insurance plan mitigates risk of loss without incurring unnecessary insurance costs. Every business has unique needs that should be covered through sufficient cash savings accounts or insurance coverage. Costs associated with both approaches should be weighed prior to buying recommended insurance coverage for the business fleet.

Insurance is designed to protect the business instead of paying its bills. Carrying insurance for every possibility will be expensive and unnecessary. Decision makers are wise to balance insurance premiums against risk levels.

10. Set appropriate deductible – Every insurance policy includes an agreed upon amount that the policyholder will pay for each claim before the insurer pays for losses. Companies are wise to assume an affordable level of risk before signing the insurance contract. Deductible amounts are paid for claims on every insurance policy a business holds.

Concurrent claims will require payment of policy deductibles for each claim. Major events can result in real estate, property and vehicle losses. Large deductibles on every business insurance policy can cause financial hardship for the enterprise. Insurance deductibles affect the cost of insurance dramatically since the insurance company is left with the remaining cost of every claim. High deductibles will lower annual insurance premiums but must be weighed against the probability of making claims.

11. Shop for best rates – Careful comparison between the available company car insurance policies must be conducted prior to purchasing, or renewing, the policy. Loyalty to one insurance company must be earned through lower annual premiums on all types of business insurance. Selection of a different insurance company should not be based on introductory rates that will expire in six months. Specific aspects of the policy must identical to reveal the actual cost of insurance for the coming year.

• Deductible –
• Coverage amounts –
• Liability coverage –
• Number of drivers –
• Premium amounts –
• Fine print –
• Introductory premiums -
• Stable insurance companies –
• Claims service -

Attempting to compare company car insurance policies with different attributes can be expensive later. A business relies on reputable insurance companies to pay claims in a timely manner following loss. Saving a few hundred dollars on car insurance is not the highest priority. Affordable insurance with prompt claim payment is preferred over cheap insurance with denied claims.

12. Seek discounts – Business insurance discounts are structured differently than private insurance discounts. The insurance shopper must ask the insurance company about every recommended method for saving money. Risk-reducing activities are encouraged by insurers that offer better rates for certain actions. Policyholders are wise to ask for recommendations and report to the insurer when the safeguards have been implemented.

13. Eliminate unnecessary coverage – Paying for glass-replacement insurance on the company cars insurance policy might be more expensive than paying for new windshields. Specialty insurance coverage across the entire fleet will drive the cost of insurance higher without measurable benefits. Every coverage segment should be evaluated against the probability of loss. Location plays a significant role in the types of insurance that are necessary to balance premium costs and damage-related expenses.

14. Self-insure except liability – In some cases, the business will have sufficient cash available to pay for most losses without fleet insurance. All businesses must carry liability insurance to cover losses incurred by third parties. Insurance costs can be lowered substantially if a business is able to pay for vehicle repairs and replacement. Money that would be spent on annual premiums could be saved to pay for losses incurred through normal use.

15. Make claims promptly – Delays in filing claims will incur costs that could be avoided. Insurance companies can reduce the cost of each claim when the damage is identified and repaired quickly. Business expenses will accumulate quickly when a business car, or truck, is out of commission for days at a time. Company car insurance covers many services for the other parties involved in an accident. Employees must understand the risks of waiting to report incidents that involve property belonging to others.