At the time of writing, the UK economy seems to be performing very well.
In fact, in 2016, our economy grew faster than that in any other major western economy apart from Germany – and that includes the USA.
While there is plenty of good news around, many companies are still feeling the pinch. Margins remain tight and fleet managers have never been under greater pressure to deliver a cost-effective fleet solution for the business.
This is perhaps why, more than anything else, you need to be sure you compare fleet insurance models before making a commitment.
Not just cost
Sometimes the traditional knee-jerk reaction of some fleet managers is to take the scythe to costs on a ‘slash and burn’ basis. At times, that manifests itself in the domain of fleet insurance by simply looking around for the cheapest policy you can find.
While we at Alan Blunden Insurance Brokers will always work with our clients to find cost-effective solutions for fleet insurance, we’d typically never advise concentrating exclusively on finding the cheapest possible cover.
That’s because there are many dimensions to delivering the cover your fleet requires in order to deliver the optimum support to your wider organisation. Certainly cost should be high on your priority list but it’s far from the only thing to consider.
Why a broad-based comparison is required
When our clients speak of ‘policy cost’ they usually mean the premium payable.
That’s understandable but it’s in fact only one element of the direct and indirect costs that might be associated with a given policy. That’s why we look at the totality of your business and compare fleet insurance policies available in the marketplace for a good fit before working with you to home in on a preferred solution.
What other things might we typically be considering?
Well, they’ll include:
- the excess on the policy – that’s the sum you’ll have to pay towards any future claims;
- paradoxically, the excess again – because some policies might offer you the choice of opting for a higher voluntary excess and reward that with a lower premium;
- conditions relating to the ages of the drivers – some policies can look attractively priced but then charge large additional sums for drivers under, say, 25 years of age;
- the mileage assumptions – certain policies might base their initial quotation on annual mileage estimates that are just too low for your business’s practical purposes. If so, once you feed accurate figures in, the price might escalate rapidly;
- restrictions on vehicle types – that might not be a problem for you today but it could be if you expand or diversify your fleet in future;
- no-claims discount procedures and rates – self-explanatory but these things can make a significant difference to the amount you’ll end up paying over say a three-year period;
- national versus international cover – again this might be important to you even if your operations today are restricted exclusively to the UK. You won’t want to see your policy costs rocketing if you start sending your vehicles into Europe in future.
The above things are just a few of the cost-related elements we’ll be examining on your behalf.
Looking around for fleet insurance that comes with the cheapest price tag is relatively easy. It’s not a skilled job.
However, finding one that’s right across a broad spectrum of your requirements is far more demanding and that’s where our skills and expertise might be essential if you’re to deliver a total fleet solution to your colleagues.
So, why not contact us now for a review of your fleet and your insurance needs? We’ll get right on it and identify a solution that will support you going forward.