For any small business relying on transportation, insuring your vehicles can be integral to keeping your business running profitable. The cost of having a vehicle off the road due to repairs can add up significantly. Not just in the sense of tangible repair costs, but also the cost of losses that can occur from lost productivity and business during the time the vehicle is unable to perform regular duties.
Whilst insurance can be helpful in protecting the business, insuring each vehicle individually can really hike up your costs each year.
Whilst in the past, fleet insurance has appealed only to larger businesses, it is now attracting more and more customers due to the costs savings. Even if they only have a small number of vehicles on their books.
How can fleet management help me?
Fleet insurance covers your entire fleet of vehicles in just one policy. This makes it a lot easier to manage and keep track of than individual policies. Whilst it may seem that this is a one-size-fits-all policy, fleet insurance is actually tailored to your individual requirements depending on your business, how many vehicles you have and the annual mileage. As each policy is written for the individual customer, it doesn't just save larger businesses money.
Flexibility on your policy
With fleet insurance, you may be able to get flexible cover based on your requirements. You may be able to get different levels of cover (third party - full comprehensive) for different vehicles. What's more, you may also be able to cover commercial and private vehicles under the same policy.
Discounts for low claims
Whilst fleet insurance doesn't typically offer a no claims discount, you are still able to get discounts for a lower number of claims over your policy term. If you have a good track record, then you're likely to get discounts on your premiums over time.
Tailor your insurance to cut costs
Another way to cut the cost of insurance when you switch is to make sure that your insurance policy suits you. When you are comparing insurance policies, it's best to find out exactly what you're getting before you commit fully.
Get insurance based on your mileage
Fleet companies typically have a higher mileage rate than smaller businesses. However, you may be able to save money if you specify your mileage to the company. If you are a small business and don't use as many miles as the standard insurance, you can let your insurance company know. Typically, the lower the mileage, the cheaper the insurance.
Get rid of optional extras
In some policies, insurance policies also cater for company cars or provide additional replacement vehicles. If you don't need these, you can take them off your policy to save even more money. Check what you're getting and change your policy to what you actually need. There's no point paying for extras that you aren't going to use in the long run.
Telematics and driver training
With telematics in fleets, you can record data regarding driver behaviour and vehicle maintenance. Having these systems in your company can help to save money with your insurance provider. Telematics technology has come a long way and is now available to smaller companies at affordable prices. It means your fleet's safety is available for insurance companies to review, which can bring your premiums down if you have good drivers on the road and look after your vehicle's regularly.
Check your excess
Like most insurance, it can be cheaper to choose a higher excess to save money on your policy. It demonstrates to the insurance provider that you are confident a claim is unlikely. If you have a good claims record, this can shave off a significant amount to your monthly premiums. So, it may be an option worth considering.
Get advice from an insurance broker
To find the best fleet insurance for you, it can be beneficial to hunt around to find the best policy. Using an insurance broker can help save you a lot of time. They'll run through your exact needs and provide qualified advice so that you can find the best policy that suits you. What's more, some insurance brokers don't charge a fee, so you can get qualified advice without having to commit to anything. It's in their interest to find you a policy and you won't be charged any extra. In fact, you can often save even more money by comparing prices and companies without having to do any of the heavy lifting.
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