Reducing the risk of your commercial fleet will lower your business insurance. Commercial transport and motor fleets fall into the high risk bracket. It is no secret that the vehicles that make up fleets are generally operated by drivers and operators that don’t either own their own cars and those that do not pay insurance premiums; furthermore South African drivers are renowned for being careless plus our roads are not always in good condition.
As an operator never be afraid to ask for advice from your business insurance company on ways and means of reducing your business insurance premiums for your fleet.
Ways to reduce the premiums of your business fleet:
- Speak to a reputable underwriter or broker and discuss with them various ways to improve your fleet’s claims record.
- Ask for a breakdown of the insurer’s criteria and either appoint a fleet manager to look after your fleet or if the size of your fleet permits it, appoint a fleet management company to manage your fleet on your behalf.
- Fleet management firms can take care of all transport-related matters for companies whose fundamental business is not transport.
- It is no secret that transport is multifaceted; therefore it is important for companies to articulate fleet policies for financing and business insurance purposes.
- If you do choose to go the route of a fleet management company or work through a business insurance broker, be sure you choose a reputable company; one that has a long track record is a good point of entry.
How you can become a low-risk fleet business insurance client:
- The aim is to enhance present risk management practices and techniques to ensure there is a continual focus on road safety as well as vehicle upkeep.
- Risk management is key to securing fleet, truck or taxi insurance and maintaining lower business insurance premiums.
- It is never worth burning underwriters by costing them more in claims than your premiums cover – all that would happen is that you will end up in a position of paying raised premiums or with a list of underwriters who have either cancelled your insurance or will refuse to give you any cover at all.
- Self-insurance for larger operators is another option; many bigger companies choose to self-insure a certain percentage of their fleet – the added excess they carry as a result will lower their premiums, but what is more interesting is the way self-insured operators manage their fleets. If they are carrying the risks themselves they tend to have an incredibly good fleet and driver-management systems in place.
Because the insurance industry is such a competitive market, underwriters and brokers could take advantage of fleet owners; quoting lower premiums but disputing any and all claims the client makes in the future – therefore if you are taking out business insurance for your fleet, it is a good idea to work with established and honest names in the business.
