Fleet insurance: what to consider when choosing and managing vehicle insurance

The work of a fleet manager is never done. You have to manage your drivers and look after your vehicles daily. You purchase fleet insurance because it gives both your most essential assets full protection, but that has to be managed as well. Of course, you can always just “get and forget” your fleet insurance, but that is only applicable if you have money to burn and you can afford every coverage and inclusion you set your eyes on.

Click here to subscribe to our print edition!

Choosing the right fleet insurance and managing it to give you maximum protection for a reasonable price is essential, especially for newer fleets.

Choosing the Right Vehicle Insurance for Your Fleet

When it comes to choosing the best insurance for your fleet, here are the things you need to consider:

How Much Should You Spend on Insurance?

The cost will always be at the forefront of every fleet manager’s mind. They must ensure that the company doesn’t overspend and that all investments must be cost-effective. Of course, this doesn’t mean you should go for the cheapest option available on the market. When it comes to fleet insurance, the cliche “you get what you pay for” truly applies. If you settle for cheap insurance with little coverage, you’ll find yourself paying more when disaster strikes.

Assessing Your Risks

The best way to find out what insurance coverage works best for your fleet is to conduct a risk assessment on your drivers and vehicles. Risk assessment allows fleet managers to see what aspects of their business are more prone to risks and problems.

If your assessment shows that many of your drivers take a lot of risks on the road and frequently disobey traffic rules, it’s time to take action. Aside from subjecting your drivers to road safety testing and recommending them for re-training, you should also look for insurance that provides extra protection for collision damage and third-party liability.

If the risk assessment shows that your biggest problem is that the roads your drivers ply on aren’t safe and there’s a lot of criminal activity around, protection against theft, vandalism should be on top of your list.

Managing Your Fleet Insurance Correctly

Choosing the right fleet insurance is only half of the equation. Once you have fleet insurance, you have to manage it properly. Proper fleet insurance management allows you to keep your premiums low and ensures you never miss a payment and renewal.

Insurance Features that Make Management Easier

If you want fleet insurance management to be easier, ask your insurance provider if they offer the following features:

• Multiple vehicle policies – this allows you to put several vehicles under one policy. Managing insurance becomes tedious if each vehicle is under a different policy, as this means you have to remember renewal dates for every one of your policies.

• Multiple driver policy – this allows you to insure the vehicle only. Some policies require you to name a driver for each vehicle, which does not work for fleets with high turnover and shifting schedules.

• Multiple payment arrangements – insurance policies with several payment term options are convenient for fleet managers. Ask your provider if you can choose to pay monthly, semi-annually, or annually. While monthly payments may seem more budget-friendly, annual payments are more convenient and can save you more money in interest and processing fees.

Fleet Insurance is a Long-Term Responsibility

To continue reaping the benefits of your fleet insurance, you must keep a close eye on it regularly. Fleet insurance isn’t something you forget until you need it. As a fleet manager, you should examine your fleet insurance regularly to ensure that it is still a perfect match for your needs and if you are still getting your money’s worth from it.