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Fleets urged to prepare for ‘significant’ rises in insurance premiums

Fleet operators can expect to see significant rises in their insurance premiums unless steps are taken to improve risk management and reporting.

Man in red top with neck brace

Changes to the way personal injury compensation pay-outs are calculated have seen insurance bills increase 15.7%.

So says Teletrac Navman as it urges fleets to take action to limit the impact of recent changes by enhancing their risk management.

Following changes earlier this year to the way in which personal injury compensation pay-outs are calculated, known as the Ogden rate, in March, car insurance premiums are rising – recent research published by Consumer Intelligence finds that bills have rocketed 15.7% over the past year – more than five times inflation – with this month’s Insurance Premium Tax rise to further add to the pressure.

In response, Teletrac Navman is launching a new campaign, in conjunction with its insurance consultancy partner Jelf, to ensure the fleet industry and its customers take action to limit the impact of recent changes.

John Marks, sales director at Jelf, said: “No business wants to incur additional unexpected costs. With proper planning and a positive approach towards risk management there are steps that can be taken to help reduce the potential impact.”

1.       Proactively use telematics software – to gather evidence on how you’ve improved risk management
2.       Consider integrated cameras – which can prevent accidents and highlight instances where drivers were not at fault
3.       Improve driver behaviour – implement processes and review meetings with drivers to reduce speeding and excessive cornering and braking
4.       Consider whether your vehicles are fit for purpose – could your fleet use smaller vehicles if they’re operating on narrower roads or smaller depots, thus reducing potential accidents?
5.       Reporting – fleets must provide evidence of risk management when renewing their insurance premiums

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Natalie Middleton

Natalie has worked as a fleet journalist for nearly 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day.