Truck insurance is one of the top expenses for both large and small fleets. Fleet managers need to monitor insurance rates and coverage options and optimize their safety plans or risk overspending for coverage. Fleets should look at their business as an insurance underwriter would—is their risk level acceptable or are they a hazard waiting to happen? Expensive repairs, rising settlement costs, increasing medical expenses, and more are driving up insurance premiums. To combat this, fleets can take the following steps to improve the likelihood of securing preferable insurance rates:
- Reduce risks across the board. Fleets with a poor CSA score, a significant number of losses, or frequent compliance problems have a big hurdle in their path to achieving lower rates. They don’t look good on paper and simply won’t have access to top-rated carriers. Keeping controllable risk factors in check can resolve this issue over time.
- Leverage telematics. Accidents involving commercial vehicles can become rapidly and inordinately expensive. The injured party can sue both the driver and the company for punitive damages and compensation. One of the leading causes of these costly crashes is distracted driving. Fleets can lean on their telematics data to identify preferable driver traits for hiring, implement safety initiatives to reduce distractions, and install advanced safety equipment to help mitigate these risks.
- Create an attractive profile for underwriters. Talk will only do so much to reduce insurance rates. However, providing proof of positive safety changes can make a difference. Showing receipts for safety initiatives such as better technology, additional safety training, and updated policies can provide proof to insurance underwriters that your fleet risk profile is as low as possible.
- Focus on hiring, retaining and training safe drivers. Driver turnover is a very real problem for fleets, which can lead many to turn a blind eye to questionable safety traits. While it puts a much-needed driver behind the wheel, that fleet hired a long-term safety problem. Fleets need to make sure they provide incentives for their qualified safe drivers to stay while avoiding hiring problem drivers for the sake of expediency. And ongoing training to reinforce safe driving practices is a must.
- Change the perspective. In previous years, some fleets had the perspective of “That’s why we have insurance” when thinking about accidents and claims. In today’s trucking environment, this attitude can result in higher premiums as the fleet’s loss ratio suffers. Trucking companies should not approach insurance as their safety net for hazardous drivers or lawsuits, they should look at it as an opportunity to improve safety and reduce costs.
Insurance premiums can swiftly become an unmanageable expense if fleets don’t take safety efforts seriously. Contact the experts at Interstate Motor carriers to learn more about improving your fleet’s safety and reducing fleet insurance premiums.