Car cover savings
Like many companies you probably run several vehicles. Insuring them is expensive (especially following a claim) so should you cover them all under a fleet policy or is there a cost-effective alternative?
Key questions
Are there savings to be made on your company’s motor insurance? If you have more than five vehicles it may be worth seeking fleet cover. Also, depending on what the vehicles are used for, it might be better to insure them individually.
Claims history. One of the most important considerations in fleet insurance is your claims experience over the last five years. Most fleet policies are “rated” meaning that the insurer needs to charge a basic premium based on usage and type of vehicle, who drives them and where they’re based. Then a discount is deducted/extra premium charged according to your own claims history. Some insurers will only accept “same type” vehicles, i.e. five or more vans or cars. Others will accept a mix. So the message is clear, just because one insurer turns you down, it doesn’t follow that cover won’t be available.
What’s the deal?
Don’t assume that fleet rating will always give the most competitive rates. It may be that, say, two drivers with poor records will result in the premium being increased for everyone else (with good records). Also, if you have a couple of, e.g. senior directors who use their vehicles just for commuting, it may be better to take the cars out of the business and have them insured individually. Do shop around but remember that the “best” price might come with conditions attached.
Are the rates heavily discounted just to get your business - if so, expect a big hike on renewal. What’s the excess on each vehicle in the event of a claim? What’s the situation if you need to make a glass claim? Some firms insist you use their recommended firm. Are there any age restrictions on drivers - will your children be covered? Is no claims protection available? Does the insurer have a record of not paying claims or of taking a long time to do so?
Who does the legwork?
Arranging cover online for all your vehicles is an option but you might want to pass the job onto a broker who’s experienced in the fleet market. Give them a copy of last year’s renewal details well in advance of this year’s - so that there’s no excuse at the 11th hour to take out the first available cover (might be uncompetitive). Ask your existing insurer for evidence of your claims experience two months plus ahead of schedule. Request the renewal quote at least one month ahead of the renewal date. Here are some premium-saving tips.
Tip 1. Consider a higher excess. You’ll need to make sure all drivers are aware what it will cost your company if they have a “fault” accident.
Tip 2. Take senior employees/directors off the fleet and insure them individually if their business mileage is low. Could be their cars are a bit more expensive anyway.
Tip 3. Try to limit the number of drivers - the more open the policy, the higher the premium.
Tip 4. Make the driver responsible for maintaining the vehicle (via a motoring policy). This should help to reduce the chances of vehicles being bent by careless drivers.
The next step
For a free sample policy, visit http://companydirector.indicator.co.uk (CD 07.18.04).
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