On average, your insurance premiums will go up by around 8% to 10% every year, according to MoneyWeb. But this could be more if your insurance provider deems your business “high-risk”. What does this mean and can it be changed?
From what you can do to lower your fleet’s risk profile to how insurance companies gauge your business from a risk perspective; we’ve got your common questions covered.
Fleet managers should be focusing on safety within their fleet to lower insurance premiums. Having a preemptive mindset when it comes to preventing incidents, and also knowing what risks are avoidable, all play a part in being perceived as a low-risk fleet company.
Insurance premiums are always relative to the risks they cover. In other words, when risks go up, so do your premiums. Commercial fleet insurance has become more strict because they can’t keep their prices competitive without prompting their clients to face risks head-on.
These include:
But other in-company factors also play a part:
Fleets are considered high-risk by insurance companies when they have a history of incidents (vehicle or cargo theft, accidents, etc.) that resulted in insurance claims. This indicates to insurers that appropriate safety measures haven’t been put in place, and that drivers aren’t held accountable for their driving behaviour or the cargo they carry.
Common risks associated with fleet management are vehicle accidents caused by consistently poor driving habits, equipment or vehicle theft, and equipment-related accidents. Fleets also face other risks like fuel syphoning, cargo theft, dangerous roads, and vehicle breakdowns.
For a company to qualify for fleet insurance from an insurance company, they can own as few as 2 vehicles. This is known as a mini fleet and falls under the business insurance category at insurance underwriters.
Telematics affects fleet insurance by providing a solid bargaining tool for businesses with fleets. Having a strong telematics system allows companies to analyse valuable data and make safety decisions that lower their risk profile, giving them a strong position in negotiating their premiums or premium increases.
Because driver behaviour plays such a big role in risk profiles, driver scorecards offer companies a way to incentivise their drivers to behave more safely on the road. They also empower businesses and fleet managers to coach their drivers with more focus on the individual weak points they’re struggling with.
Yes, the purpose of fleet data is to highlight weak points within your fleet’s safety. By having this data you can systematically take steps to increase safety and put policies in place that lower your risks & your risk profile. It's a double win because you save money AND also pay less on your insurance.
Companies with fleets that can’t prove that they actively manage risks will invariably pay more on their insurance premiums. They’ll also struggle to keep up with all the other expenses and excess payments that come with accidents, theft, downtime, and breakdowns.
A fleet management system from Cartrack does multiple things that all play into your risk profile. These include:
Fleet vehicle cameras from Cartrack provide indisputable footage of what really took place during an incident. They can exonerate your drivers, protect your reputation, and prove blame when it’s the other party that’s responsible.
