8 Ways Fleet Drivers Impact Fleet Insurance Rates

Things You Need to Know Before Buying Car,House, Health & Life Insurance online.

Insurance Buying Tips #1: Shop smart
When looking for insurance, your No. 1 priority should be to find adequate coverage. Price is important, but you’ll want to determine what kind of coverage you need first. Then you can fit that coverage into your budget and determine which carrier can provide you with the most comprehensive policy for your situation. You may be tempted to choose insurance with the lowest price tag, but if you don’t have enough coverage (or the right kind of coverage), you will see less financial benefit when it comes time to file a claim.
Insurance Buying Tips #2: Look for discounts
Once you evaluate your coverage needs, factor in your budget and find ways to save. Ask your insurance agent if there are any discounts on your coverage. Often, carriers offer discounts for things like paying your policy in full, staying auto accident-free or, if you’re in school, getting good grades. You also can save money by “bundling” multiple policies, such as purchasing a home and auto policy from the same carrier.
Insurance Buying Tips #3: Fill in the gaps
An average policy will cover the basics, but you may need to add extra coverage to meet your unique needs. For instance, you may have items like electronics or a nice piece of jewelry that would be financially difficult to replace, even with the assistance of your average renters or homeowners policy. You may want to add additional coverage for these items.

A lot has been written about aspects influencing car insurance rates but almost nothing about fleet insurance – basically, an car insurance for businesses that have to operate / manage 5 or more vehicles. On the other side fleets can be as big as thousands of vehicles, e.g. rental car or taxi fleets.

Fleet insurance rates are typically impacted through more aspects than individual auto insurance. This list of large categories includes drivers, vehicles, nature of the business, policy specs and many other aspects. This article focuses on driver as one of the key items considered when calculating a fleet insurance quote.

Insurance Buying Tips #4: Purchase life insurance—you aren’t too young
Life insurance is essential, no matter how young or old you are. And for millennials, buying now may be a smart move because it’s cheaper to buy a life insurance policy when you’re young and healthy. This kind of insurance can help your family cover unexpected costs in your absence, including student loan debt or a mortgage, in addition to end-of-life costs. And if you have kids, a life insurance policy can also support their education or childcare expenses. Additionally, every millennial should consider long-term disability coverage, which helps you stay afloat financially if an accident happens and you become disabled and unable to work.
Insurance Buying Tips #5: Talk to an independent agent
An independent insurance agent is an essential resource when purchasing insurance—especially if this is your first time. An independent agent works with multiple different carriers, which is different from captive agents who can only sell insurance from the carrier they work for. Working with an independent agent can help make sure that you are getting the best coverage, for the best price. You’ll also benefit from independent agents’ insurance knowledge; they know how to talk you through your options and actually explain what each policy includes. An independent agent will make sure all of your assets are covered, help you find discounts or other ways to save, and be a valuable resource as your life changes and your insurance needs change, too.
Insurance Buying Tips #6: Only buy insurance to maintain your existing standard of living
You don’t need insurance for events that won’t severely strain your finances. Start with your basic needs (home, auto, business), then work your way to include other needs (cyber, liability). You can always obtain coverage later for something if you change your mind. You can minimize your risk and maximize your savings by buying insurance that won’t cause you to break the bank.
  1. Age: Hiring young drivers without significant experience mean that insurance cost will be higher. Fleet insurance rates work similarly to individual car insurance in this aspect. Young drivers cause higher costs. Older drivers, on the contrary, come with a lot of experience and can help reduce your fleet insurance rates.
  2. History: Hiring drivers with good driving history means lower insurance rates. If your fleet drivers have an extensive history of accidents, tickets and convictions, it definitely will be impacted in your fleet insurance rates. Thus driving history should be one of the key aspects your contemplate when hiring a new driver.
  3. Training: If you can demonstrate to an insurance company that you have ongoing driver trainings in place, that will drive down your insurance costs. Trained drivers are better prepared for unexpected road situations and tend to create less accidents.
  4. Staying up-to-date: If you are keeping an eye on your fleet drivers, it means that you are aware of all possible issues such as accidents on the individual side, any possible criminal issues etc. Know what the problems are will allow you to mitigate these before they impact your insurance rates and, as consequence, your insurance rates.
  5. Fresh and fit: Avoid getting your driving staff overworked – that will inevitable increase a rate of accidents resulting in higher claims amounts and higher insurance rates. Make sure that drivers get enough rest while being on the route (e.g. via special guidelines or tracking via a fleet management system). In some cases, you will need to emphasize this message to your drivers because they might have had a different experience in the companies where they worked before.
  6. Driver's job place safety: Make sure that all your drivers have a safe environment – working equipment, air bags, soft pads where necessary. That would reduce in case of an accident an impact on drivers' life and health reducing accident benefits claim costs. Do not forget that you are responsible for your staff and for creating safe work environment for them.
  7. Safety measures: Make sure that all your drivers get safety training and guidance. They should know in case of an accident or emergency. You might want regularly repeat this training (e.g. quarterly) and make sure that every new driver goes through it as well. Also make sure that each driver has in a cabin a list of necessary telephones including emergency company contact, insurance contact, his/her fleet manager etc.
  8. Drivers habits: Should you have drivers who choose (with company's permission) take vehicle home and leave that there e.g. overnight or during the weekend, make sure that you have a bob-tail coverage on corresponding insurance policies. This type of policy covers accidents and theft can happen either on the way home / back from home or theft when a company vehicle has been left at home.

Driver is only one of many large characteristics of your fleet impacting your fleet insurance premiums. Our full list of fleet insurance savings lists over 20 other items influencing your fleet insurance rates including business characteristics, vehicle features, fleet aspects and coverage specifics.

Insurance Buying Tips #7: Ask your insurance provider what the policy doesn’t cover
Every insurance policy has perils that are not covered by your policy. These perils are referred to as “exclusions”, and every policy has them. Ask your insurance provider to explain the exclusions in your policy to avoid discovering what they are once you incur damages or a loss.
Insurance Buying Tips #8: Consider bundling several policies with one insurance carrier
here may be value in bundling several policies with one insurance carrier. If you’re looking to insure multiple vehicles or obtain multiple types of business coverage (e.g., liability, property, cyber), then you may want to consider obtaining coverages under one insurance provider who carries multiple products, and who may be able to offer you multi-policy discounts or loyalty programs.
Insurance Buying Tips #9: Review your insurance needs on a yearly basis
As your needs evolve, so will your insurance policy. Maybe you’ve acquired a new vehicle since obtaining auto insurance for your primary vehicle, or started operating your business out of your home, or experienced a cyber-attack during the year… Whatever the change(s), you’ll want to make sure you’re covered for any new risk exposures. Talk to your insurance provider to stay on top of your insurance needs.
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