BRITISH fleets faced insurance premium increases totalling millions of pounds in the past year, with some firms paying increases of more than 40%, a shock new survey reveals.

Half of all fleets experienced insurance premium increases over the past year, as insurance firms reassessed their approach to the risk of covering fleet business.

The rises have prompted two-thirds of firms to look at the best way to reduce their insurance premiums, including driver training. More than 40% of firms have been hit with premium hikes of between 11% and 20%, while 16% were forced to accept increases of 21% to 30%. A further 4% paid 31% increases in their premiums, while a further 4% were hit with whopping 41%-plus increases.

The cash drain on company resources is revealed in a Fleet News survey carried out in conjunction with Town & Country Assistance, the specialist motor claims management company which handles 100,000 claims a year.

The research also showed that more than three-quarters of fleet managers still have fully comprehensive insurance for both their car and van fleets.

The survey, carried out last month, covered 215 fleets throughout the country, including contract hire firms and companies running fewer than 100 to more than 1,000 vehicles. It found 48% of firms were considering driver training, while 21% were considering increasing their level of self-insurance.

But Theodore Agnew, Town & Country chief executive, warned companies to be wary when exposing their own finances to insurance claims.

He said: 'As a first step, they might wish to discuss with their broker what opportunities are available to them to reduce their premiums without creating time-consuming and costly problems for themselves in the future.

'We do feel that those companies which decide to increase their level of self-insurance should look closely at the massive administrative and cost benefits offered by motor claims management specialists, many of whom also have close working partnerships with related disciplines such as driver training.'

The majority of fleets use a broker to obtain insurance, while 65% agreed outsourcing accident management cut administration and helped minimise insurance costs. Agnew added: 'Many fleet managers are obviously facing severe pressure from their finance directors to reduce fleet costs, particularly with respect to motor insurance premiums, and are looking around to find a solution.'