How to get the best Commercial Fleet Insurance deals
How to get more from your Commercial Fleet Insurance
The commercial fleet insurance market has been turbulent for a number of successive years now but suddenly, we find ourselves in a place where actually, commercial fleet has changed to be one of the ‘softest’ forms of commercial insurance.
As a results, if your broker acts in the right way, you should be seeing the most competitive premiums of the last 5-6 years.
Why Commercial Fleet Insurance isn’t as straight forward as you might think…
Broking a commercial fleet is often seen by brokers as a very transactional process, a simple procedure whereby a list of vehicles coupled with a basic claims experience is sent to insurers in order to receive quotes back.
This is where they are going wrong.
A fleet policy should be looked at in exactly the same way as a complex combined policy.
Providing Evidence of Minimised Risk can help reduce premiums
A full presentation of risk should be accompanying the vehicle list. Details which will make underwriters offer the very best premiums can include:
- Vehicle usage/annual mileage
- Vehicle security
- Vehicle overnight postcode locations
- Risk management activities performed by the business to ensure the fleet is operated responsibly such as;
- Driver Training
- Frequency of licence checks
- Where drivers are sourced from during the recruitment process
- Any front facing cameras installed?
- Are trackers used?
- Does the company have a dedicated fleet manager?
- Can driver telematics/driving patterns be assessed by management?
- Is there a driver handbook in place?
- Are spot checks on vehicles performed?
- How does the accident reporting procedure work?
This list is not exhaustive but this information can help underwriters build a much more accurate risk profile for the business in question.
By managing your risk and looking at factors that insurers would deem to be minimising the risk, not only can you reduce insurance premiums, but ultimately overall fleet running costs.
The impact of claims on your commercial fleet insurance
The myth that is often applied to fleet policies is that if there have been claims, the price automatically increases. Once again, the difference is made by the detail provided.
A fleet claims experience should be scrutinised by a broker before it goes to market so that accompanying narrative can be put alongside it.
Key examples here would be:
- Has there been any ‘one off’ claims (large isolated incidents or incidents that are ‘non-fault’) – a good broker will speak to an underwriter so there is a ‘view’ taken on such instances
- Have there been any claims whereby the driver involved no longer works for the business
- Of the claims suffered, what are the patterns? For example, are there a number of thefts, a number from the same driver
- Out of the claims suffered, how many are windscreen claims. Although these only make up for small fiscal amounts, they massively impact the second biggest thing an insurer looks at in relation to a claims experience – the frequency
- Although many fleets are marketed using a 3 year claims picture, this might not give the best representation of the policy if back to back bad years have been suffered. A 5 year picture may be better and insurers will accept this
Again, this list is not exhaustive and each fleet will have its own story to tell in relation to the claims experience.
Getting more out of the underwriters.
Finally, your broker should always be asking more of underwriters. What else can they do to make the policy more financially rewarding for the business?
Examples could be an insurer offering to contribute to risk management (giving a bursary to have front facing cameras or trackers installed and giving a premium reduction once completed for example).
Another popular option at the moment is a ‘Low Claims Rebate’. This is where, if a fleet has less than a set amount of claims made in the 12 month period, the business gets a percentage of the premium back at the end of the term.
Editor : Thank you to Caunce O’Hara Insurance Brokers of Manchester. If you have any questions about commercial fleet insurance, you can contact them by visiting their website by clicking the button below.