Fleet News

Price of poor management set to soar

FLEETS with poor accident records are likely to see their insurance premiums double. Changes in the Budget, new legislation and industry pressures will all, almost simultaneously, exert huge pressures on companies with fleets and those who ignore the warnings will pay the highest price, warned Rosemarie Spiers, executive director of Aon Risk Services, at a forum on 'Cutting fleet costs through effective risk management and savings lives'.

Insurance companies had been paying out more in claims than they had been taking in premiums. As a result, Spiers said, premiums would rise by a minimum of between 10% and 20% for the average fleet and up to 65% for those with poor accident records. Insurance companies would reduce levels of cover or increase excesses and shy away from seeking 'unattractive business'.

Changes the Government had made that would increase the pressure included upping the insurance tax in the latest Budget, rising payments as a result of the Road Traffic (NHS Charges) Bill to those injured in accidents and the Woolf Reforms which are expected to lead to more claims and heavy penalties for non-compliance.

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment


No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee