Fleet insurance and liability: Minimising costs and risks

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Managing fleet insurance costs is a crucial focus for any fleet operator. Looking for strategies to manage insurance costs, minimise liability risks and ensure adequate coverage for your fleet? This detailed guide will provide the practical insights you need. Understand factors that influence insurance premiums and explore a range of cost-cutting strategies.

Understanding fleet insurance costs

To effectively cut your insurance costs, you’ll need to have a clear picture of what influences your premiums. Here’s an overview of the common factors that determine how much your fleet pays for insurance:

Vehicle types and usage:

The type of vehicles in your fleet and how they are used can significantly impact insurance costs. For instance, commercial vehicles used for long-haul trips may have higher premiums compared to those used for local deliveries.

Vehicle repair costs:

How much you allocate towards vehicle repairs matters to the cost of your premiums. Vehicles with higher repair costs typically attract higher insurance rates. Learn more about vehicle repair costs and fleet insurance premiums.

Driving records and accident history:

A fleet with a history of accidents and poor driving records will face higher insurance premiums. So, maintaining clean driving records is one of the most effective ways to reduce your costs.

Claims frequency and severity:

Frequent and severe claims can lead to increased premiums. You’ll want to manage and minimise claims to keep your fleet’s insurance costs down.

Have you thought about customising your insurance coverage to match your fleet's specific needs? One-size-fits-all policies may not suit every fleet. Tailored fleet insurance can result in better protection and cost savings for your business.

How driver safety impacts fleet insurance costs

Driving behaviour has a direct impact on your overall insurance bill. Keep these two rules of thumb in mind:

Fewer accidents mean lower premiums
Safer driving reduces the risk of liability claims

Your drivers are the frontline to road safety. Have they successfully completed any safety trainings? Are they up to speed on the latest safety regulations and company policies? Do your new-driver onboarding materials around safety need beefing up?

It's important to remember that driving behaviour is just one aspect of fleet road safety. Vehicle maintenance and compliance go a long way in preventing road incidents too. Could you use a systematic way to review your fleet’s safety practices? We recommend doing regular fleet safety audits. See our post for tips on getting started.

Leveraging data to reduce insurance premiums

Fleet management software can give your fleet’s cost-cutting efforts a big boost. A solution like Webfleet makes it easy to monitor your safety benchmarks, helping you identify which actions your business should take. And when your metrics show a significant improvement in safety, you can use this data to ask your insurance provider about discounts or customised premiums.

Here’s how to increase road safety and lower your insurance costs with Webfleet:

Tyre pressure monitoring: Did you know that 90% of tyre-related breakdowns are the result of slow leaks? Or that 20% of commercial tyres on the road are sorely underinflated? With a tyre pressure monitoring system, you can detect potential issues before they become a problem, keeping your drivers and vehicles safe on the road.

Driver coaching: Real-time feedback and analysis can make all the difference in a driver’s ability to perform their best behind the wheel. Our OptiDrive 360 tool enhances fleet safety with feedback for drivers before, during and after trips.
Digitised inspections: Paper-based inspections make it challenging to have any real clarity on the health of your vehicles. That’s where digital vehicle inspections come in. With our Vehicle Check app, drivers perform their daily walkarounds and submit paperless checklists. If a driver hits the road without submitting their checklist, you ‘ll get a notification.

Ready to enhance road safety while reducing your insurance costs? Explore our fleet safety solutions.

Choosing the right insurance coverage for your fleet

Selecting the appropriate insurance coverage is essential for protecting your fleet. Key types of coverage include:

Liability insurance:

This mandatory coverage protects your business against third-party claims

Comprehensive coverage:

Insure your vehicles from non-collision events such as theft or natural disasters

Cargo and goods-in-transit insurance:

If your fleet transports goods, this type of coverage is essential, since it protects against cargo loss or damage

Gap insurance:

For leased vehicles, gap insurance covers the difference between the vehicle's value and the amount owed on the lease

When evaluating insurance policies, you’ll want to look for the best balance between premium costs and deductible amounts. You’ll also want to assess whether the policy provides adequate coverage, understanding any exclusions.

Partnering with insurance providers

Wondering how to get better terms and lower premiums for your fleet? Think of your insurance provider as a business partner. Try collaborating with insurance companies on reducing your costs.