Chasing cheaper quotes for cover might not be best way to lower insurance premiums, says Ashbourne Insurance’s Peter Smits.

Small improvements in driver behaviour can have big results in terms of insurance premium costs

Insurance cost is at the forefront of many fleet operators and there is often pressure placed on the broker/insurer at renewal to find a cheaper solution. While I would agree that an insurance provider should look to obtain the most competitive solution, fleet policies are rated according to the claim experience – typically over the previous three years – vehicle type and driving restrictions. Therefore, reducing accident rates is one of the best ways to drive down premiums.

The whole process starts with tackling the problem. Firstly, aggressive driving, harsh braking and rapid acceleration can increase fuel consumption. Secondly, most ‘accidents’ are not accidents at all, but are the result of human error. Small improvements in driver behaviour can have big results in terms of costs.

It’s worth carrying out regular assessments. The use of telematics will be useful when trying to reduce fleet costs. Reviewing the fleet’s accident history with a broker will enable them to benchmark the company against similar operations to determine how the fleets compare, instead of just waiting until renewal. Updates on a quarterly basis are advised.

By regularly checking driver data, fleet managers can get insights about what areas need to be improved and share the data with drivers. This process encourages better driving and reduces the occurrence of accidents, which should help a broker negotiate better rates when it’s time to renew fleet insurance. Another step that could be taken is the introduction of driving policies to ensure the operation of a safer fleet. A policy allows fleet managers to put hints and tips in writing, which would help drivers build better driving behaviours. While such a policy will help limit the amount of claims faced, it also shows care towards drivers. It could also help to demonstrate to any regulators, such as the HSE, that there is a company policy in place which drivers have agreed to follow.

Once these steps have been carried out, address drivers who do not meet company driving standards, or who have a higher accident rate – again this is where regular claim updates from a broker can assist. Taking things one step futher, in-car tuition or driver safety training could be considered. Drivers with a greater number of points (endorsements) on their licence will need closer monitoring to minimise the risk of additional penalties.

There is a whole area around rewards and gamification. Good driving should be rewarded and, with an eye on driver’s scores, teams could be interested by a little friendly competition. Start with initiatives like ‘Driver of the month’ or ‘Most improved’ to motivate the fleet, with incentives or even just the pride of coming in first place. Furthermore, think about creating individual targets and rewards, with each driver having their own goals to achieve.

It sounds straightforward, but remember to review before renewing. Take the time to gather the relevant information that demonstrates the fleet’s safety and shows the strides being made to be safer. Fleet management software is a great way of keeping tabs here – and it provides all the evidence you need to prove your fleet’s driving standard.

Another crucial aspect is accident reporting, so encourage all fleet drivers to do this at the roadside, as well as taking photos, getting witness details and begin to think about witness statements. We would still recommend that drivers take these actions, even if they are at fault. Many claims get exaggerated for personal injury or vehicle damage when at very low impact and these steps can help prevent fraudulent claims.