With fleet insurance premiums expected to rise in 2020 following the long-term impact of the Ogden discount rate – the government-set rate for those injured in accidents – businesses will be feeling the pinch when it comes to renewing their policies.
Rather than being something fleet managers have to put up with, it is possible to counter the effects of pricey premiums by proactively looking for ways to reduce the risk of incidents.
Brigade has put together five essential ways to reduce your corporate fleet insurance over the next year:
- Look at past claims
Gain a better understanding of your fleet’s performance by looking at your claims history. This is the best way to assess and manage risk, based on real data. Your claims history will highlight drivers or areas that need improvement. Are there any patterns emerging from these instances which could be overcome with training? How you record and act upon minor issues will also help to build a comprehensive picture.
- Install technology
Technology now plays an important role in improving road safety and reducing accidents by eliminating blind spots and other common hazards. In particular, vehicle camera systems help prevent instances by giving the driver a clear view around the vehicle.
A recent survey conducted for Brigade Electronics found 69% of fleet managers had decided to purchase technology specifically to improve the safety standards of their fleet. The poll revealed 73% of fleet managers have purchased vehicle camera and /or CCTV technology, with 43% of those purchases made within the last year.
For the respondents using this technology, 47% said the objective was to bring down insurance costs. Once installed, over a third (33%) had seen a reduction in insurance costs as a result of installing a vehicle camera system and /or vehicle CCTV.
The survey also revealed 49% of respondents make regular purchases to upgrade the technology, demonstrating an ongoing commitment to maintaining the highest standards of safety.
Installing camera monitor systems, digital recording equipment and obstacle detection alarms helps to put an end to fraudulent claims against your fleet, avoid collisions and improve your safety record. In combination, these measures will actively improve your claims record and drive down insurance premiums for the future.
The common causes of accidents such as blind spots can be mitigated with vehicle mounted CCTV cameras for a surround view of people and obstacles nearby. Modern systems patch together multiple images for a clear, single view in real time.
Mobile digital recorders capture footage from vehicle-mounted CCTV to provide irrefutable evidence in cases of conflicting reports, crash for cash claims and vandalism. Technology is now cloud-enabled to ensure valuable data is held securely whenever it’s needed as an independent witness.
- Invest in driver training and safe schemes
Invest in long-term driver training programmes either in-house or by appointing a third party. Good driving standards are the foundation of your fleet’s performance, therefore investing in regular courses and advanced skills – like driving in bad weather – will pay off in the long run. Incentivising good driving practices is also an ideal way to encourage the highest standards of road safety.
Signing up to initiatives like the Safe Driving Scheme could help to reduce the number of incidents and keep premiums down by demonstrating an active approach to driver performance.
- Tighten security
Making your vehicles harder to break into will keep your insurance premiums low and your claims record to a minimum. Beef up your security measures by keeping vehicles in a locked car park or garage overnight which is monitored by CCTV. Immobilisers and alarms also help to deter thieves and will have a direct impact on your renewal quote.
- Shop around
Automatically renewing your policy with your current insurer may save time but could cost you more than you should be paying. Shop around by getting three different quotes. Before making a decision, speak directly to your current insurer to see if it’s possible to negotiate discounts or cut costs by combining existing policies.
It’s also worth looking at the extras on your policy to see if they’re really necessary to your current business operation.
In combination, these measures will help keep your costs down and provide the protection your fleet needs while on and off the road.