Press Room

5 tips to reduce your fleet insurance premium

Pieter Moyson - Fleet Manager

In 2016, after three years of relatively strong growth of an average of 3.3% per annum, total premiums in Europe declined by 0.4%. Nevertheless, insurance still makes up 5-10% of the fleet management profit allocation. Fleet insurance is a costly but unavoidable expense for your company. It is necessary to minimize potential damage and financial losses, but you don't have to pay too much! Here are five proven ways to reduce your fleet insurance premium:

1. Employ drivers with a clean license

Hire drivers with good driving records exclusively. The cost of a bad driver can be much higher than the cost of being temporarily short-staffed. It is highly desirable to have a team of drivers with clean licenses. Insurance providers will often look to see whether anyone in your driving staff has been convicted for drunk driving, caught speeding or relies on their personal car insurance policies. Ensure your drivers are fully aware that you have a zero tolerance policy on alcohol and drugs and demonstrate this to your insurance broker to keep your premiums down to a minimum.

Concordia helps clients by assisting them with their car policy. We analyse the original policy and evaluate what can be adjusted and what else should be included. This is then signed by all drivers and has proved to decrease damages. We also recommend synchronising your car policy with any other safety procedures you may have in order to reach advantageous prevention. Coordinating all actions to result in one effective global prevention policy is the goal.

2. Perform thorough risk assessments

In-house risk assessments should be performed on a regular basis. Going into detail about the accident claims and processes, and analysing in which areas your fleet needs to improve will deliver the best results. Organise this efficiently by listing the accidents and their causes, then study statistics and tackle the most significant weaknesses. Demonstrating that you are equipped to monitor incidents and taking immediate action is a very effective method to reduce insurance premiums and the risk your fleet poses.

If you do not have the competence to manage this successfully, several insurance providers have their own risk assessment departments who can work with you.

3. Have extensive driver training programmes

Train your drivers to be as safe as they can be on the road. Driver training should be viewed as a long-term investment that will work to reduce your claims, and will ultimately reduce your premiums. Safety meetings that recognise and reward drivers with the best safety records will reinforce your company's commitment to safe driving. This will also motivate your drivers to do better.

Even if you don’t have the facilities or resources to conduct driver training in-house, this can be outsourced. From intensive defensive driving courses to long-term advanced training, a range of options is available.

At Concordia, we offer detailed explanations of the steps to take when the accident occurs. Taking pictures of the damage at the moment and filling in the claim correctly can make a difference between a high and low expense. Concordia’s fleet team provides you with tips that help you resolve everything as smoothly as possible after the accident and reduce your fleet insurance premium in the long run.

4. Use vehicles that cost less to insure

Newer vehicles with up-to-date security systems are less likely to be stolen, plus the latest safety features could safeguard against personal injury claims. Newer vehicles also benefit from the latest fuel efficiency advancements which reduce CO2 emissions and as a result cost less to insure. Furthermore, you’ll probably save money on breakdowns, repairs and fuel too.

If you do not have the financial ability to invest in new vehicles at the moment, it is important to keep checking your vehicles before transport. Make sure maintenance is up-to-date and that all repairs are done.

5. Benefit from telematics

Invest in fleet telematics if you have not already. There are a number of applications and devices which monitor your fleet and provide information on the safety of your drivers. This can improve repairs, maintenance, fuel efficiency, security and safety communication. An example of such a device is ProDongle. This tiny device can be plugged in the port of any van or car and has a built-in GPS and mobile connection.

In 2017, a client changed insurance providers and installed ProDongle in their fleet. The following statistics show a reduction of 20% in premiums after ProDongle was used.

  • 2015: 37 Damage Claims (123,28%)
  • ​2016: 27 Damage Claims (133,07%)
  • 2017: 21 Damage Claims (94%)
  • ​2018: 15 Damage Claims (73%)

​This type of prevention measures can considerably reduce damage and lower the premium for your fleet insurance. Concordia helps you with prevention tips and deciding which insurance company is best for you.

Since a variety of risks are attached to insurance, it is recommended to consult an expert broker before committing to a policy. Concordia is the right insurance partner for the transportation sector. Whether it’s a large or small fleet, you can count on our expertise and proactive support for risk prevention.

We insure and manage, so you can perform.

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