Here, Mark Rigby, managing director of business insurance specialists Insurance Revolution, looks at how a company owner can keep business car insurance costs low, while still being adequately protected.
As a business owner, there is a wide range of insurance types that need to be implemented. Public indemnity, workers’ compensation insurance, third party personal injury insurance and professional indemnity insurance are some of the many types of policies that are necessary to the smooth running of many organisations.
Vehicle insurance is another prerequisite.
If you’re running a business that has at least one vehicle, you need a policy that fits your budget but covers every eventuality.
However, the realm of business car insurance is vast, complicated and daunting. When it comes to making the best decision for you and your business, how do you know you’re getting the best deal for all your requirements?
There are still lots of things that small business owners are not doing with their business car insurance. It is still possible to get excellent cover at a good price.
Developments in the telematics industry have led to a huge take up by drivers and business car insurance companies. By connecting a black box to the diagnostics part of the engine, information is transmitted to third parties who analyse your speed, driving ability, attentiveness and any accident black spots you drive along.
While some people may be concerned about the “Big Brother” aspect of these devices, there are also many good things about them. Not least that they can cut your insurance bills by 25 per cent – so definitely worthwhile for a business watching its overheads.
Hiring a broker
The process of finding business car insurance that fits your requirements at a price that fits your budget is painstaking, time consuming and laborious. Hiring a broker takes the responsibility off your shoulders with the reassurance that they will get a deal that suits.
Time is money, and finding car insurance deals is a major thorn in the side for a lot of business owners. Brokers will make sure they have every aspect covered at the best possible price.
Pay up front
Monthly business car insurance payments might work better for cash flow, but if you can, pay the whole amount upfront. Monthly payments can work out costing hundreds more pounds more – so definitely a good option if you have the resources.
Paying the lump sum is far better than the seemingly more manageable monthly payments. The savings are well worth it.
Businesses benefit greatly from a focus on driver safety. The installation of video cameras into vehicles can not only help modify driving behaviour, but also be a very cost effective way of reducing the number and size of claims.
There is a growing number of companies fitting cameras into cabins. However, it’s recommended that drivers are introduced to the idea beforehand with a full explanation of why the scheme is taking place. Some staff may initially find them intrusive and invasive.
How’s My Driving?
Involving your organisation in the How’s My Driving? scheme is a way of educating drivers and providing a simple and cost effective way of monitoring your fleet.
The How’s My Driving? scheme – a social enterprise that reinvests money into road safety in Britain – has been really successful over the years, and led to a significant reduction of accidents within organisations. By affiliating with the scheme, you can help create better driving records and encourage fewer road accidents.
Mark Rigby is managing director of Insurance Revolution.
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