– By Victoria Nelson –
Have you heard this before? I have. And I read an article on Fleet News in the UK, which was more like an advertisement, from a guy selling a dash camera solution telling how annual insurance premiums are so old fashion.
It got me thinking, are Fleet Managers actually savings money on their insurance by using evidence to prove they have a low risk fleet?
This may be an abstract concept but think about it like Uber. When no one wants an Uber they’re cheap. Then comes NYE and the media gives them free publicity by complaining how high the rates are. Uber uses a supply and demand pricing model and based on their share price – it works.
Historically insurance works in a similar way but over a longer time frame. With telematics, dash cams and improvements in technology to make vehicles safer, insurance companies should start to price their services like Uber.
As a Fleet Manager if you buy vehicles with collision avoidance technology your accidents should reduce. If you have telematics you should be working with drivers to see a reduction in risky behaviour on the roads. A dash cam can then prove liability if there is an incident.
There will be a transition period as the fleet turns over and drivers get the message. But why pay an annual premium based on the risk profile of bad drivers and older vehicles?
As always there are risks. What if you have a high risk fleet? What if you have lots of collisions in a short time frame? Well, your premiums may go up. But this will sharpen your focus and commitment to safety. Which is a good thing, right?
You may not be involved in the insurance discussions within your organisation; so here’s a chance to make yourself relevant. Start a conversation with the guys that manage it and find out if there’s an opportunity to reduce the premium. It doesn’t hurt to ask?