Fleet insurance is a good choice for businesses with two or more vehicles. This specialized policy allows companies to put all their vehicles under one policy with just one premium to pay, one policy to renew and go through one claims process.
The reason direct fleet insurance has grown in popularity is because it can save companies money on their motor vehicle premiums. Placing all vehicles under one policy reduces premiums. But there are ways to lower these premiums even further and keep them low.
One of the ways to keep the cost of your direct fleet insurance to a minimum is to constantly review your policy. You often sell a vehicle and you forget to remove the vehicle from the policy due to crowds. Regular reviews ensure that your policy is up to date and that you are not paying for vehicles you no longer own.
Reviewing a policy is also an opportunity to ensure that you are not overpaying for your coverage. As your policy expires and it’s time to renew, shop around to see if you can get a better price.
It is essential that you ensure that all vehicles included in your direct fleet insurance have the necessary safety features to reduce theft. Security alarms, immobilizers and where you park the vehicles at night all play a part in the overall price you pay for insurance.
If each vehicle is equipped with an alarm system and immobilizer and parked in a secure parking lot overnight, you can enjoy a lower premium than a vehicle parked on the street overnight without an alarm system.
Your drivers play an important role in the price of your direct fleet insurance. It is a fact that younger drivers are seen as a risk to insurance companies, with most accidents on the road being caused by drivers under the age of 25.
Drivers with convictions in their name will also push your insurance premiums through the roof. If you have drivers who have been convicted of drink driving or caught speeding with points deducted from their licence, it is essential that you confirm with your insurance company how this will affect your premium.
Ideally, you want all your drivers to be over twenty-five years old and all have clean driving licenses. Often you can find out if your drivers have a no claims bonus on their personal insurance policy. This can often be taken into consideration by your direct fleet insurer to confirm that your drivers pose no risk, reducing your premium.
In some cases, the insurance company will consider drivers low risk if they have had driver training such as advanced driver training that will make them safer on the road. While this can be a cost, it can save you in the long run.
It is essential that you continuously review and compare your direct fleet insurance policy with other policies on offer. Make sure your policy meets your fleet’s requirements in terms of coverage level and liability coverage.
Consider asking if you can afford a voluntary deductible. This is offered by some direct fleet insurance companies that allow you to lower your premiums by increasing your deductible should you ever need to make a claim.
Voluntary deductible is a good choice for companies that do not claim often or have not had to claim for years, this way the premiums stay low and if you need to make a claim in the future you will pay a higher premium, generally you can save your business money.