Tips to Reduce Fleet Insurance Costs

Operating a fleet of vehicles is not an easy thing to do. Fleet managers have to keep track of driver schedules, vehicle repairs, and delivery updates, all while trying to stay within the company budget.

A commercial fleet comes with a lot of moving parts and it is understandable why companies would be looking for an edge in such a costly business. One of the best ways for fleets to save money is to limit insurance costs by as much as possible.

Insurance across an entire fleet is never going to be cheap, but there are ways to make the cost more manageable so you have more money to allocate to other areas of your business. 

Consider these four tips to reduce fleet insurance costs:

Fleet Management Systems

Have you ever wanted to ride shotgun with your crew? Fleet management systems provide a comprehensive view of how vehicles and drivers are operating on the road.

Fleet management systems typically have GPS trackers installed inside the vehicle and send data to the home office dashboard or the service’s smartphone app. This gives managers real-time knowledge of the driver’s location from their office, along with sharing driver behavior monitoring and vehicle diagnostic information. It also tracks aggressive driving, harsh starting and braking, lane departure, hard turning, and more.

Many systems feature driver behavior monitoring technology that can be used as a preventive measure. If you notice that a driver is consistently speeding, you can coach them out of their bad habits so it does not lead to a ticket in the future. Make sure tickets don’t add up and lead to higher insurance costs with fleet management systems. 

Dash Cams

Dash cams are a great tool to decrease insurance costs because they provide video proof of exactly what happened in the event of an accident. Equipping your fleet with dash cams can result in exoneration of drivers from accused mistakes, quicker and simpler insurance filings, and fewer liability payouts because you have clear evidence of what actually occurred.

Most dash cams designed for fleets come with in-cab driver behavior monitoring technology can be especially useful for insurance purposes. Let’s say one of your drivers gets ticketed for texting while driving, but the in-cab video shows that he had both hands on the wheel at the time, then you can show that footage to local authorities to get the ticket rectified.

Getting justifiably ticketed is one thing, but don’t let incorrectly assigned tickets drive up insurance costs for your fleet.

Stay Compliant

Complying with local regulations can lead to savings on insurance premiums. Insurance companies often reward fleets with drivers that regularly complete pre- and post-trip inspections because it shows the fleet is being responsible. 

These inspections show that a vehicle has been checked on before and after its trip. Drivers go through a checklist and mark down any defects so the vehicle can be promptly repaired.

Fleets that fail to do this can be subject to heavy fines from local municipalities, which obviously cuts into the company budget, and having a ton of violations can also result in higher insurance rates as well.

Train Drivers Well

Better drivers will have fewer collisions and get ticketed less often, so make sure they undergo comprehensive training before they first get started. 

Continuous training also helps drivers be at their best. Fleet managers can use the driver behavior monitoring features of fleet management systems and dash cams to confirm their drivers are following all protocol details on the road.

Many drivers may have already completed some sort of driver training course, but that doesn’t mean you can’t get them up to speed on the specific vehicles in your fleet. Better driving means fewer accidents, and fewer accidents means less expensive insurance.

Conclusion

Whether it is gas prices or repairs, the world is constantly eating away at a fleet company’s budget. Make sure insurance does not require more money than it needs to by implementing some of these tips across your fleet.