Having a higher insurance rate will begin to eat into your company’s profits. Even with costs on the rise, you can’t avoid the price of insurance, but you can take active measures to lower the cost of your fleet. The claims will often cause a substantial rise in the price of insurance, and reducing your accidents will prove the most effective way to keep your premiums lower.
Maintain Ongoing Assessments
Data, the invaluable assistant of every fleet manager, will provide you with accurate and relevant information to make expert risk assessments. Examining the stats will give you insights on how to lower the costs. Speak with your insurance provider to better understand how they see your accident history. Your insurance provider may show you a benchmark of accidents to see how your company compares to others. Taking your information, you will look at the reports to determine the types of incidents that have happened. That can show you what actions to take to lower the costs. You should also have a look at the incidents that didn’t require claims because you can determine the causes to weed them out.
GPS Fleet Tracking Software
Not only do you cut costs by reducing idle time, but many insurance companies will hand you a discount for having this software installed. The idea behind the software is that it will keep an eye on drivers for greater safety. Drivers who know the fleet manager is watching them will exercise more care. GPS fleet tracking software will monitor driver speed and rapid acceleration habits. You can then speak with the driver about his habits to correct them. At the same time, this software will minimize your liability because it shows how you took reasonable actions to keep drivers from reckless behavior on the road. When a company driver has an accident, the other drivers involved will often file a lawsuit against the company. Taking reasonable care reduces your liability.
Beware of Drivers Who Don’t Meet Your Standards
Hiring some drivers will raise the cost of your insurance premiums. Maintain a minimum standard rate and don’t hire drivers who go over that level to keep your premiums lower. You could also adopt a policy where you escalate the safety measures taken for at-risk drivers to encourage responsible driving habits. Some of the measures that companies have taken include fleet driver safety training and in-car tuition tactics. Actively monitor the speed and acceleration habits of drivers to ensure that drivers maintain safety habits that will keep your premiums low.
Secure Your Fleet
Along with ensuring safety habits on the road, you should review the safety and security of the vehicles when not on the road. Examples of this include a secure parking location and protection from vandalism and theft. You might add more secure fences, better lighting and stronger locks to guarantee the safety of your fleet. Do your due diligence when selecting an insurance carrier and browse the top companies so that your rates are manageable from the start. Be sure to inform your insurance company about the new changes to see if they will give you a greater discount on your insurance premium. In many cases, they will because of how they see you as a lower risk.