Fleets urged to combat rising insurance premiums by improving safety
Fleets have been urged to mitigate insurance premium increases by working to
improve their driver safety record.
Vehicle leasing and fleet management company
Arval says that reducing claims is the surest way to managing rising insurance
costs, which have increased by up to an estimated 8% this year, according to
the Association of British Insurers.
David Watts, Arval fleet consultant, explained: “A significant
proportion, certainly more than half, of the typical fleet insurance premium is
based on previous claims history, usually across the previous three years.
“On this basis, the most effective way to contain any potential premium
increase is to improve your road safety record. Reducing the number and the
severity of collisions in which your vehicles are involved will impact the
overall cost of claims and, over time, have an effect on the premium itself.
“Organisations achieve this by embedding road safety into the culture of their
business, further developing their existing work-related road risk management
programme or, where one does not exist, creating the necessary framework.”
Key points that needed to be covered, Mr Watts explained, included raising
awareness of good driving practices, reviewing claims and incident data,
looking at performance against safety targets and making line managers
accountable for the driving behaviours of their direct reports.
“This last point is very important. The line manager is often the best person
to influence behavioural change in drivers in accordance with company
“Of course, those managers need to be effectively supported with an engaging
programme of driver communications on a variety of road safety issues, spelling
out its impact on the business through mediums such as information documents,
workshops, seminars, training and social media.”
An alternative route to minimising premium increases is offered by Arval in the
form of Arval Total Care, a product package which includes insurance within the
monthly lease rate and is therefore fixed throughout the term.
“By taking this route, fleet managers know their insurance costs will be
‘locked in’ for the duration of the lease and is included in a convenient,
single monthly payment,” said Mr Watts.