With business costs including fuel prices at an all-time high, it’s important to try and reduce overheads where you can, but without cutting corners or taking unnecessary risks. One way you can do this is by ensuring you are receiving the most competitive premium available through early engagement in your renewal process. It’s important to remember that it is your insurance renewal, and you should ensure your broker also puts your interests first and starts the process in good time with you.
Your motor fleet premium will more than likely be your largest proportionate spend and underwriters base their rates on an evaluation of the facts and history your broker presents to them.
It helps if you can account for any claims anomalies, such as a spate of minor windscreen breaks or larger one-off losses. Your broker’s presentation should encompass all key details and background information to ensure they are presenting a fair and comprehensive overview of your business.
Your premium calculations:
Unlike no claims bonus rated policies, your fleet insurance premium will be driven largely by your claims experience.
Factors that an underwriter will look at include:
- Vehicle years – an average of the number of vehicles you have insured during a given period.
- Claims frequency – how many claims have been made, (including any for windscreens).
- Value of claims – how much has been paid out overall.
- Risk management- Do you have a strategy in place, such as driver handbooks, a training program, driver assessment & review policy, in-cab cameras and telematics? How do your transport managers utilise the data they receive to inform their decisions and manage poor performing drivers? RHA Insurance Services can assist on this to implement proactive and remedial actions to improve the performance of your drivers.
- Driver age profile – you’ll get better rates if your drivers are over 25 and have no convictions, however many of RHA insurer partners do not charge more for younger drivers provided the business has excellent risk management and driver training facilities.
- Vehicle & trailer security – where are they kept? A locked and secured site overnight is always preferred, as well as trackers.
- Level of excess that you want to pay – sometimes increasing your own damage excess can assist in reducing your premium a little.
Other rating factors include your business sector and what you carry, location, vehicle types and use of vehicles. It’s worth asking if any policies can be combined as economies of scale can often be leveraged if you take out a bundle of covers such as Goods in Transit, Public & Employers Liability cover.
Don’t leave your renewal to the last minute
Timing is everything… Don’t leave it to the last minute and ensure your broker does not postpone or delay in sending you all the required documentation you need. If you start 30 days in advance you’ll have time to obtain comparative quotes. Don’t ask for more than three quotes though, as flooding the market will potentially have an adverse effect.
You will need to get your confirmed claims experience (CCE) before you can source any new quotes, and this won’t be released by your current insurer until about 30 days in advance of your renewal date.
Check list for renewals
Have a complete list of all your vehicles and a note of all fitted equipment and any modifications.
Driver information will need to include names, Date of Birth and how long they have held their licence (if aged under 25 years), plus details of any convictions.
You can get a 7-day extension if your renewal price was not provided until the last minute or you did not receive your claims experience in good time.
In some cases, it is possible to provide a letter of reporting authority to alternative brokers to correspond with your insurers and obtain the relevant claims information.