The top 5 reasons behind your fleet premiums increase:

1. Claims experience
2. Type of vehicle
3. Age of drivers
4. Number of vehicles
5. Competition

A fleet operator will know that as the number and frequency of motor accidents increase there will be a corresponding increase in the cost of motor fleet premiums. For a well managed fleet of 10+ vehicles expect to see premiums averaging £475-£600 per vehicle depending upon the driver age restrictions and postcode where the vehicles are kept overnight.

In simple terms the insurers will look at the total fleet claims costs over a three year period and if the claims costs exceed the premium received expect an increase in your premiums at renewal.

There are exceptions to this basic rule where a single large claim in the three year period can have a negative total cost.

The fleet of vehicles you operate will vary in value and ease of repair. Exotic or High performance cars attract bigger insurance costs. The same goes for high value vehicles that are theft attractive. Ideally the blander the vehicle fleet the lower the insurance costs.

Yong drivers and drivers with poor records must be declared to the fleet insurers. Failure to check your drivers licences or driving accident history could pose some difficulties in the event of an accident. Full disclosure of material facts including restricted licences due to medical history is a big concern for insurers. Again the lower risk drivers tend to be middle aged with 10+ years experience/no accidents/claims or convictions. Deviation from this could cause some insurers to increase the premium rating and add higher policy excesses depending on the driver age and issues disclosed.

Insurance Competition for well managed fleets is going to generate the lowest premiums. To get the best rates you need to check the market for alternative insurance quotations. Ask your broker how they intend to seek competitive quotations from their panel of insurers. Usually 8-10 insurers will give you a good indication of the appetite for your business – make sure your broker has a broad insurer base when reviewing the market at renewal.

Cornerstone Insurance has the following tips to reduce your fleet insurance premiums

1. Keep the claims frequency to a minimum – pay for minor repairs to avoid trashing your claims experience
2. Check with your broker that previous claims have been settled. Insurers often place reserves on unsettled claims and this may artificially affect your claims experience at renewal.
3. Fit dash cams and additional cameras to help insurers win contentious claims where the third parties may mistakenly hold your driver at fault. Experience has shown the cameras to prove driver innocence when there were no independent witnesses,
4. Check your drivers are competent and understand the affects of poor driving can have on the insurance premiums. All too often careless incidents can mount up and this will impact on the fleet experience.
5. Keep vehicle keys in a safe and secure place when the vehicles aren’t being used. Vehicle theft is much easier if thieves can get to the keys.

Below is an overview of some of the criteria from commercial fleet insurers:

• Allianz – a Thatcham S5 tracker is required if the vehicle is worth £40k+
• Arch – tracker warranty applies for Land Rovers over £40k (usually £50k).
• Covéa – newer models valued £75k+ will require a Thatcham Approved S5 tracker, a minimum premium of £2,500+IPT will apply, plus an increased excess of £2,500 accidental damage, fire and theft excess along with windscreen. For vehicles under £75k then, whilst additional terms will apply, they will treat each risk individually.