Managing the insurance needs of company vehicles can be time-consuming and confusing. Just keeping track of policy renewal dates, negotiating pricing and juggling excesses can be a drain on administrative resources. That is why businesses with three or more vehicles might consider fleet insurance as a catch-all to cover their vehicle insurance needs.
Fleet insurance eliminates the need to insure each vehicle individually. This type of insurance is suitable for small to medium-sized businesses with a range of vehicle types from small trucks to utes to vans and cars.
It is priced around group rates and whilst driver experience is a factor used to determine the premium, individual drivers’ history is softened based upon the entire fleet’s claims experience.
Typically, businesses need at least three or more vehicles to be eligible for mini-fleet insurance or around 15 for more medium-sized fleets.
The hassle and disruption associated with having one of your vehicles off the road can cost your business time, money and reputation. That’s why it is important to have adequate insurance cover in place, including replacement vehicles as part of the policy.
Of course, each of these vehicles performs a different function in the business – so it is worth seeing an experienced insurance broker to assess and cover risks that are unique to your business.
There will be different policies depending on the size, type and applications of the vehicles, and your unique requirements.
Managing a fleet of work vehicles means more than just handing out the keys. Someone has to take responsibility for monitoring driver behaviour, maintenance and the safety of road users.
Moreover, the duty upon an employer to provide a safe working environment for its employees extends to whilst they are away from the business premises ‘on the road’. For example, driver fatigue is a significant risk for a business with a vehicle fleet.
One of the newest initiatives on the market to help manage risk is driver telematics to measure driving safety measures such as speed, braking, cornering, location and journey time. This data can help manage risk and bring down a premium.
Better driving can prevent accidents and also save up to 15 per cent in fuel costs.
Some businesses choose to outsource the fleet arrangements to companies whose sole business it is to ensure cost and safety efficiencies across the full cycle of ownership.
As well as strict government rules about making drivers more accountable in fleet vehicles, companies should be clear with employees about who is responsible for fines and penalties.
Copping a speeding ticket or parking fine in a large fleet weeks after the infringement means keeping careful records of who is using which vehicle. This is particularly important in a large fleet, as hundreds of cars can accumulate thousands in infringement notices over a few years.
Fleet management is a complicated business. But understanding where and when your vehicles are being used is important in the management of your company’s fleet.
If you’d like to find more about fleet insurance, please call us or fill in the form below and one of our trusted advisors will contact you.
Article supplied by OneAffiniti
Photo by Rhys Moult on Unsplash
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