Fleet News

Insurance bills too high, fleets warned

FLEETS failing to implement thorough accident management policies could be wasting thousands of pounds on excessive insurance premiums, a fleet management group has claimed.

Research from Goodwood Fleet Management has shown that only 15% of companies have a comprehensive road risk policy, which could help to lower insurance premiums.

Stuart Donnelly, sales director at Goodwood Fleet Management, said: 'Many companies simply allow their current arrangements to run on because they are not confident that they have all the necessary facts to justify a change.'

He claims that by recording the number and type of incidents, how long vehicles and drivers are off the road and the costs to the business can help produce an accident management report.

Data from the report can be used to reduce overall downtime, enabling fleets to negotiate lower premiums from insurers.

Donnelly said: 'Analysis of the accident history of one of our customers revealed that 60% of accidents were parking related. Conducting specific, targeted training has resulted in a significant reduction in the accident rate and substantial savings for the company. Reducing accidents of this type will reduce the cost of repairs that fall in your insurance excess.'

However, Donnelly believes that before making any drastic changes to insurance policies, fleets need to ensure that all decisions are made on 'detailed, accurate and up-to-date information'.

The fifth HSBC Vehicle Finance Business Car Expectations survey published earlier this year claimed that insurance continued to be an under-examined cost centre for fleets.

The report stated: 'Without undertaking regular reviews of claims history and terms available from the insurance market, the business could find itself paying too much for its insurance.'

However, it found that although fleet decision-makers were aware of the benefits of using an accident management company, only a quarter of respondents actually used their services (Fleet NewsNet, May 25).

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