The costs that are associated with operating a fleet of vehicles often make business owners wary of the costs they may incur. These range from the cost of maintenance to the cost of insuring these vehicles. One way fleet operators have found to lower their costs is by having tracking systems placed into their vehicles. This provides a whole host of benefits that would otherwise be lost to the operator of the fleet.
One way that having vehicle tracking devices lowers insurance premiums is by allowing the operator of the fleet to monitor the driving habits of their drivers. Many times the owner of the fleet can’t keep track of how their drivers perform when behind the wheel. When a tracking system is installed, it lets the driver know that all of their actions behind the wheel are being monitored. This leads to caution that might otherwise not be observed by the driver. This will help to reduce the amount of accidents the drivers are involved in and lower the insurance premiums for the owner.
Having a vehicle tracker installed also helps in the recovery of vehicles that are stolen. A timely return of a stolen vehicle will help to reduce the loss that may be incurred. When a vehicle is stolen, it is often destroyed or sold for parts or metal, but fleet tracking will help to prevent this as local authorities will be able to easily locate the vehicle and return it before any damage can be done.
The fact that a vehicle tracking system has been installed in the fleet vehicles can also be presented to the insurance company. Premiums will often be lower for customers that take the necessary precautions to ensure their vehicles are kept safe. These tracking systems will often pay for themselves multiple times over as insurance claims become few.
The decision of a fleet operator to have vehicle tracking systems placed in all vehicles may at first be met with resistance from the drivers of the vehicles. The operator can explain that these devices not only benefit the company itself, but also help to protect employees if they are ever injured from an accident. In this way, both the operator and the driver benefit from the system and companies can focus on their chosen business rather than trying to afford costly insurance premiums.
1 Comment
-
Some industries require a fleet of vehicles by nature and will need a flexible motor fleet insurance policy to ensure that all drivers and fleet vehicles have sufficient cover during their day-to-day activities. The key difference between this and a commercial vehicle insurance policy is the additional responsibility of managing the vehicles and drivers.
Because of the nature of some businesses, employees may be required to be out on the road for hundreds of miles each day, increasing the likelihood that they will be involved in accidents from time to time.
A recent study from the Fleet Support Group showed that a large proportion of companies regularly see 30% of their drivers involved in road traffic accidents each year. Ultimately the number of accidents which fleets are involved in can result in hundreds of thousands in pounds of loose.
Insurance is a necessity, but premiums for companies that drive many miles is likely to be higher as the risk of accidents increases. Fleets can reduce the insurance excess costs by effective accident management and efficient training for drivers, managing third party costs and driver duty of care.
Fleet insurance is normally for a company that has 3 or more vehicles, and it means that 1 policy covers all vehicles and drivers – this saves the company having to insure each vehicle separately. The company is responsible for ensuring that all drivers fit the criteria of the policy (eg it could state that all drivers must be over 25 or that all drivers have a totally clean driving licence etc).
The company then pays one annual premium to get all vehicles covered, and any of their drivers can drive any of the vehicles. If the company purchases a new vehicle or gets rid of an existing vehicle then they advise the insurance company and the policy is amended. For a very large company that has a big turnover of vehicles, they will notify the insurer quarterly of any changes, rather than notifying every single amendment. Basically, a fleet policy is used where several motor policies would otherwise need to be issued.
