Fleet insurance is a major cost for organisations, with premiums soaring in recent years as the cost of repairs and rising car thefts take their toll.
Driving forces include fraudulent ‘cash for crash’ injury claims as well as the increasingly amount of expensive technologies found in vehicles, such as ADAS sensors and electrification.
However, there are ways this can be minimised, such as ensuring any collisions are reported swiftly (known as first notice of loss (FNOL)), reducing the number of claims and introducing robust risk management programmes.
While the majority of organisations opt for ground-up, comprehensive cover through an insurance company or broker, fleets can also self-insure.
This is when they increase the excess that it bears to the level where it effectively insures only for losses that it causes to third parties.
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