The Importance of Risk Management
The price you pay for your fleet insurance is largely driven by your claims experience, whether that is good or bad. Knowing and accepting this will allow you to develop and implement robust procedures to ensure that your fleet of vehicles is well managed and that the number of accidents that your drivers are involved in are few and far between. The price you pay for your fleet insurance will then fall due to an improved claims experience.
Over 90% of accidents are down to human error which should tell you all you need to know about where you should focus your risk management.
Moreover, young drivers, drivers with convictions, inexperienced drivers and drivers with previous accidents are more likely to be involved in an accident than any other driver. Just by identifying these drivers within your company will allow you to focus your resources towards them. This could take the form of driver training, driver monitoring/tracking or by implementing a penalty or incentive scheme for these higher risk drivers. These drivers can be identified with a simple questionnaire.
Not only will your fleet insurance be cheaper if you have a well-managed fleet, fewer accidents will also mean a reduction in the number of appointments missed by your drivers as well as an increase in their productivity with fewer hours wasted dealing with accidents and all their associated problems. This includes arranging replacement vehicles and re-arranging client meetings. Other benefits also include an increased level of professionalism.
Part of ensuring your fleet insurance costs are kept to a minimum is the regular audit of your driver’s licences. Preferably at least twice a year, but as a minimum they should be checked at least once per year. If one of your drivers has an undisclosed motoring conviction, then in the event of a claim you could find that your policy will not cover you.
Most people reading this will be aware that not every 3 points need to be disclosed to insurers, however, included in your statement of fact or in your fleet insurance policy wording, (which would have been issued with your last policy) will be the condition that any serious motoring conviction such as a DD or IN10 would need to be disclosed to and approved by the insurance underwriter, before cover is provided. Any non-disclosure could result in a lack of cover.
Risk Assessment Software
Available at a nominal charge per driver to all our Fleetcover clients is a suite of risk assessment software that will profile your drivers and identify the need for remedial training.
A simple 40 minute online exercise with compelling imagery helps drivers to recollect their earliest training and reminds them of how they can be a better driver through anticipation, proper planning and taking care.
Simple online exercises based upon hazard perception, attitude, and good driving practice will help you to score each driver and develop a plan to show where training is needed.
Getting an accurate handle on how people drive under your fleet properly is one stage in reducing your insurance costs. Working with Fleetcover to manage and present your fleet better will give an insurance underwriter the confidence to price more competitively because they believe your fleet will have fewer claims going forward than it has done in the past.