Opinion: Alarmed by rising fleet insurance costs? How to lower your premiums

By Steven Kirwan, director of operations at LeasePlan Insurance (soon to be Ayvens Insurance)

Most drivers will be familiar with money saving expert Martin Lewis’ golden rule for renewing your car insurance. The advice is to look at quotes sooner rather than later with the sweet spot being 23 days to get the cheapest price possible.   

But does the same rule apply to fleet insurance?  

With premiums skyrocketing by 18% on average, fleets are getting increasingly expensive to maintain. Fleet managers may be feeling the pinch and on the lookout for new money-saving hacks to help cut rising fleet insurance costs.  

Is there a money saving ‘sweet spot’ for fleet insurance?  

Facing rising premiums isn’t new to fleet managers. Vans and commercial fleets are more expensive to insure than domestic cars and higher premiums are more common due to greater risk factors. However, there are ways for fleet managers to reduce costs. 

While there might not be a time-specific ‘sweet spot’ like with individual vehicles, the earlier you start to think about renewing your fleet insurance the more likely you are to get a better deal as you can get the policy that’s best-suited for you.  

This also gives you a chance to review your existing plan in detail and compare the costs of other providers allowing you to choose a better deal.   

Take control of rising costs   

Fleet insurance is influenced by the everyday decisions that fleet managers make. By ensuring your policies and processes are running efficiently, you can pull together a strategy which signals to an underwriter your future risk will be lower.  

Insurance providers are also interested in a fleet’s claim history. For businesses with a history of low claims over a significant period of time, insurance companies can see them as low-risk and offer better deals.  

Therefore, fleets need to take the time to gather their claim history so they can make informed decisions about what kind of policy they want to take.  

Fleet managers should also review their overall fleet risk management strategy. They should understand their fleet risk approach and take into consideration the frequency of driver licence checks and driver health and wellbeing measures including eye-sight checks, targeted driver training and safety programmes.  

Another factor that should be taken into consideration is the cost of damage repair and downtime.

In 2023, data from the Association of British Insurers showed that the cost of repairs jumped 32% in the third quarter to a quarterly record of £1.6 billion.

Repair costs can be minimised by ensuring that drivers report any incidents immediately - this becomes especially crucial if the fault claims involve third parties.

Daily rental costs and replacement vehicle costs can quickly spiral so the sooner you inform your insurer, the more control they have over claim costs.

Four tips to keep fleet insurance premiums low  

• Train your drivers 

The better trained your drivers are, the safer they are likely to be on the roads. Safer driving should mean fewer incidents, which means fewer insurance claims, reduced downtime and could lead to reduced or more stable premiums.   

• Maintain your vehicles  

The best way to look after your fleet vehicles is to properly maintain them. If your vehicles are in good shape, the less likely they are to break down or cause accidents.  Regular tyre checks and speedy repair of worn or damaged tyres are essential.  Early identification of windscreen cracks and repairs can also greatly reduce claim costs in the long run.

Windscreen replacement has become one of the most expensive repairs due to the increased technology and complexity of modern windscreens - we’ve observed increases in the cost of windscreen claims by as much as 50%.   

• Invest in technology  

Dash cams may not reduce accidents, but they can help prove who was at fault in case of an incident. Telematics is also an effective way to collect data on driving patterns which can be used to identify high-risk behaviours and improve overall fleet safety.

Additionally, selecting fleet vehicles with ADAS (Automated Driver Assistance Systems) like emergency braking, lane departure or blind-spot warnings, and parking sensors can further enhance safety and reduce the likelihood of costly repairs.  

• Make sure you have the right insurance  

If your fleet changes over the years, it’s very easy to have extras on your policy that you don’t need any more – or possibly even cover more vehicles or miles than you currently drive.

Fixing this could bring your policy cost down. It’s also crucial to understand the total cost of insurance (including retained risk via deductibles, commissions, and intermediary fees) and find ways to minimise them.  

Controlling your fleet insurance costs - click here to find out what you need to know.