With insurance premiums rising both individual and commercial policyholders continually look for cost effective ways of reducing their insurance costs. A key area is that of motor insurance. It’s one of only a few compulsory insurance requirements as demanded by law and realistically perceived as a necessary promise only. One way to add value to motor insurance is by taking out a fleet insurance policy for those individuals or companies that own three or more vehicles. It is worth pointing out at this stage that it is not necessarily a cheaper option – merely a way of adding value and easing administration on the premiums customers already pay. So, who can benefit? Any individual or company can benefit, although personal policyholders do not generally have the same headaches commercial customers have. Driving by personal policyholders is normally restricted to insured and spouse or a few named drivers that rarely changes. Similarly, vehicles are not changed as often. Still, a customer who has five vehicles will still benefit from a fleet insurance policy, especially where there is a lack of history in respect of no claims bonus or if younger additional drivers are involved. Commercial customers can really benefit. Continual driver changes, vehicle changes, other Amendments and with different insurers maybe – these all add up and can prove tiresome administratively, where vehicles are insured individually. This is where fleet insurance policies really kick in. Straight away only one insurer is involved and only one policy number.
 
Drivers and vehicles can be declared by prior agreement either as and when the change is effective, on a declaration basis, monthly or quarterly. All fleet insurers also offer a variety of benefits such as risk management. Of course, fleet insurers are keen to reduce costs associated with claims but by providing these services, policyholders can also benefit financially and from a health and safety prospective.

It has been proven that investing in sound risk management more than pays for itself in a number of ways – less wear and tear on vehicles, reduced fuel and tyre costs, increased productivity, reduced number of accidents, morale, employee retention – the list goes on. Research by the Health and Safety Executive published on their website in November 2007, showed that accidents cost businesses more than the repair bill itself. It showed that customers and prospective business can be affected, not forgetting the potential for an employed driver to be absent from work due to any resultant injury or worse, any court hearings. This research also found that any company who adopts a daily risk management strategy will affect the number of accidents, improve customer satisfaction, staff motivation and, crucially, profitability.

One of the key factors when obtaining a fleet insurance policy is to make sure you utilise a decent broker. The have a significant influence over the effectiveness of a fleet policy. They are a true ally and can intervene and help with the set up and smoothness of incepting a new policy or maintaining an existing fleet of business. They also have a mandate to work on the policyholder’s behalf, not the insurers.

For any fleet insurance quote or enquiry please contact Active Insurance on 0844 477 9805 or visit there website at https://www.insurancedealer.co.uk/motor/fleet/