If you’re a company running a large fleet, you definitely want to get the best deal you can on your motor insurance, yet even small operators with a single company vehicle will see benefits from reducing their premiums. However, the key thing to remember is getting the best value for money, rather than just going for the cheapest quote: this could leave you with insufficient cover, a mistake that could prove extremely costly later down the line.
Begin by considering your company’s insurance needs: do you regularly make journeys out of the country? How old are your vehicles? Do you have drivers aged under the age of 25, who typically cost more to cover? How many vehicles are in your fleet? Staveley Head commercial motor insurance offers fleet cover for companies running five or more vehicles, so you may be able to make savings this way by combining them on a single policy.
There are many other ways to reduce the overall cost of your motor insurance. If you pay for your cover in a lump sum, rather than monthly, you will pay less, while opting for a higher excess (that amount you have to pay in the event of an accident before the insurer pays out) will also usually qualify you for a cheaper policy.
You can also reduce the amount you pay by using company vehicles less. Low mileage usually translates to lower premiums, as vehicles that are on the road less tend to have fewer accidents. Accepting a 12,000 or 5,000-mile cap on your annual mileage could qualify you for significant discounts, although you should think carefully about how this could affect your business.
If you have particularly old vehicles in your fleet with a low market value, consider whether you really need comprehensive insurance – it may be cheaper to forego it, as any claim you make due to a collision may not exceed the cost of the insurance. Older vehicles also usually have fewer safety features, so insurers consider them more risky.
Of course, another way you may be able to get cheaper policies is by investing more in driver training and safety features. Not only will you have fewer accidents that keep your vehicles and drivers off the roads, causing lost business, but opting for features like automatic seat belts, anti-lock brakes and anti-theft devices can pay for themselves in terms of lower motor insurance premiums.