VEHICLE leasing company Arma is offering insurance-inclusive contracts which it claims will reduce fleet premiums and relieve managers of administration and paperwork.

The company believes it can save fleets money by individually calculating the premiums of each vehicle rather than charging a blanket premium for the entire fleet. The premium is worked out according to capital costs, insurance grouping and mileage, and is then incorporated into the monthly contract hire rate.

Arma managing director Liam Donnelly said: 'This approach always ensures the decision-maker is looking at the true insurance costs of putting any vehicle on the road. A £20,000 2.2-litre vehicle will always cost more than a £8,500 1.4-litre vehicle, so let's recognise that fact in making decisions and writing car policies.'

The company assigns an account manager to each fleet to analyse the frequency of claims and resulting costs on a monthly basis. As part of its single cost strategy, Arma can also include fuel purchasing in its monthly rental. Overspend or underspend is then balanced at the end of the year.