One of the most significant expenses in the never-ending list of fleet costs is certainly insurance: fleet managers are always looking for ways in which to drive insurance costs down. This week there could be even greater reason to look harder than ever...
Irish companies and van drivers are facing increasing challenges in controlling costs after the collapse of Setanta Insurance, a Malta-based company which was operating extensively in Irish territory until 2014. Setanta could apparently deliver low-cost insurances but unfortunately the business model was flawed and the figures didn’t add up; it collapsed, leaving a lot of vans operating in Ireland, uncovered. The upshot of the company’s liquidation is that many hundreds of vehicles are now facing the same renewal date—April 17th.
This has caused a peak in the demand for replacing insurance policies and presents difficult challenges, since the laws of supply and demand apply, meaning the formally insured companies are looking at something like a 30% rise in premiums. To put it into perspective: around 25-30% of Irish operating vans were insured by Setanta—good news for the viable insurance companies; not so good for drivers.
In such an exorbitant time vis-à-vis rocketing insurance premiums, which strategy could you adopt to control these spiraling costs? Fleet telematics technology could indeed provide an answer to the question “how to keep insurance costs down” and really help in a variety of ways. But do you know how?
If not, have a look at these points and make today the day you fight back against the insurance costs!
#1 - The use of telematics is a plus
If your broker knows you have fleet telematics, you already have the power to negotiate on your insurance price. The acquisition of this technology indicates you have a risk prevention strategy in place, you are monitoring driver behaviour and are training drivers so that an accident is less likely to happen. It can provide useful data to make your broker understand the fleet is performing competently regarding safety. Technology also provides invaluable proof in the event of a dispute; so put away any doubts… and get on it!
#2 - Telematics itself helps in improving safety
As mentioned in the first point, you can monitor driver behaviour and get rid of dangerous driving (speeding, harsh braking, rapid acceleration) and build a useful base with which to kick-off your fleet safety training. If you train your drivers to be safe on the road, the likeliness of incidents will drop, and so will your insurance premium…
#3 - Telematics helps cutting global costs
Insurance is only one of the areas in which technology can provide a valuable help in cutting costs. Think about maintenance, fuel… and even paperwork for vehicle checks. Telematics technology and fleet management solutions can really make a difference and help you expand your business.
If you are interested in seeing how SynX can make a massive difference to the performance and efficiency of your fleet, get in touch and schedule a demo!