Fleet Insurance Tips In 2024- Matrack Insights
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Fleet Insurance Tips In 2024- Matrack Insights

Fleet Insurance Tips In 2024- Matrack Insights

The concept of insurance is simple – you own an asset for which you have paid a substantial amount, so you keep aside some money to fill the compensation gap in case of any accident, theft, or so on. Even though it seems like an expense and a nuisance, it is extremely necessary. On a business level, insurance becomes crucial for continuous operation. 

For example, a manufacturing company insures all the equipment and machinery. In case of damage or a breakdown, they can use the insurance money to get the machine working again and take care of any loss to the company.  

Fleet business owners depend on vehicle insurance that covers accidents and other liability risks for all vehicles. 

These insurance policies cover the following: 

  • cost of maintenance
  • and accidental wear and tear of the vehicles, 

which saves time, money, and other hassles related to daily operations. 

A fleet insurance policy with appropriate coverage is essential to protect and safeguard your vehicles. Comprehensive fleet insurance allows businesses to insure a group of vehicles eliminating the need for individual policies. The insurance coverage and the premium amount depending on the fleet size and the range of your operation. 

Fleet insurance liability generally applies to a situation like collision coverage if a vehicle in your fleet is involved in an accident. 

Insurance coverage includes damages caused by accidents, weather events, theft, vandalism, etc. Some fleet businesses also opt for the insurance of the driver to cover all the damages, including accident-related medical expenses.

The bottom line is that you need to be prepared for any potential threats to your business – and insurance can do that for you!

The Factors Affecting Fleet Insurance Cost

Many factors may impact the cost of your fleet insurance policy as mentioned below: 

  • Industry: Some vehicle operations are renowned for meeting strict timelines, such as couriers, ambulances, or emergency services. These vehicles generally have higher insurance premiums because the pressure of timelines might lead to riskier driving and involve more risks. 

Taxi operators, car rental companies, and shipping and transport businesses generally pay the most for fleet insurance.

  • Type of vehicle:  The condition and type of vehicle determine the premium amount for your insurance policy. The vehicle’s attributes that can affect your insurance costs are the mileage, the age of the vehicle, the maintenance routine, and the frequency of operations. 

Old vehicles are prone to more repairs, but the repair cost is less, as compared to the brand-new model.

These factors influence insurance costs.

  • The number of vehicles: As a general rule, the more automobiles you have in your fleet, the lower your insurance costs. It becomes more difficult for a smaller fleet to minimize the cost of their insurance premiums. 
  • Prior accident or claim history: The insurance price will depend on your fleet insurance history, including any accidents or damages that occurred or claims submitted. The significant instances might have an impact on the cost of insurance.
  • Driver motor vehicle records: Many insurance companies ask fleet companies to produce updated motor vehicle record (MVR) that includes events such as collisions, suspensions, moving violations, criminal charges, and more. Insurance premiums can vary depending on the drivers’ on-road behaviors.
  • Location: Insurance premiums increase if you operate in an urban area with heavy traffic and more drivers. Driving in rural areas poses less risk due to fewer vehicles and road drivers, which lowers the insurance premium. The overnight parking location also impacts the insurance amount based on safety parameters.

Fleet Insurance Coverage Parameters

There are several parameters that you should consider coverage under insurance in line with your business operations. These parameters are as follows:

  • Physical Damage: Your assets are valuable, so you must consider damage coverage. Insurance for collision damage protects your fleet whenever an accident occurs, so you do not have to pay for expensive repairs. 
  • Liability Coverage: You may have trained and skilled drivers, but someone else may make a mistake, so you must ensure that your fleet has liability coverage.
  • Product Insurance: Make sure to cover cargo with product insurance. 
  • Roadside Assistance: Your operations may require drivers to travel to odd places, so they should be within reach of roadside assistance as needed. 
  • Uninsured Motorist: Uninsured motorist protection protects you when one of these drivers is involved in an accident with you. 
  • Theft protection: Suitable insurance coverage protects the risk of damages due to weather or loss due to theft. 

How to Minimize Insurance Premiums?

You can invest in extensive coverage options and plans for your fleets, but you should also look for ways to save money in insurance wherever possible. Fleet insurance is a priority, but you also want to avoid extra expenses and save money by taking conscious measures. We will discuss the proven ways to reduce your fleet insurance premiums by reducing the risk factors.

Install vehicle trackers

Vehicle trackers determine the location of your vehicle and monitor how the drivers are driving. GPS vehicle trackers with telematics can provide accurate location tracking, ensuring the protection of vehicles against theft or misuse. Again, by ensuring that drivers are made accountable for safe driving practices, risk factors reduce considerably, and premium amounts for insurance are bound to come down. An effective GPS tracker minimizes the chance of accidents or damage and increases the chances of recovering a stolen vehicle. These factors help to reduce the insurance premium price.

Activate alerting system

The security features of GPS trackers, such as quick alerts in case of unusual movements, unauthorized use, or unsafe driving behavior, can help control the vehicle and protect it from potential danger. You can lower the price of an insurance renewal quote by reducing risk factors. The expensive assets need protection round the clock, whether on the move, parked in the street during the day, or tucked away in a secure overnight location. The alarm system will discourage and stop miscreants from taking away your valuable vehicle and contents.

Make a risk-assessment

If you have a large fleet of vehicles, a comprehensive risk assessment is necessary that will provide you with information to mitigate risk factors. The insurance agencies also have their risk management and assessment team to guide you with the best protection solution suitable for your fleets. 

Discussions with the provider about relevant issues will reveal the areas of improvement and the driver’s responsibility to avoid risks. Modern technology has made a risk assessment and management more convenient, as you can monitor vehicle movements and driver performance in real time and take suitable actions. 

You can substantially reduce the insurance cost by taking care of the risk factors and resolving them with conscious actions.

Implement driver training programs

Experienced and trained drivers will reduce the chances of risks arising out of traffic violations and accidents and subsequent damages and repairs. You can conduct driver training in-house or utilize outsourced resources. 

Drivers must undergo training programs that include defensive driving and advanced techniques. Your insurance provider must recognize these before deciding on the policy premium.

Drivers with suitable training are reliable, avoid risky behavior on the road, and will be involved in fewer accidents, which is a favorable condition for the insurance provider for a reduction in the premium amount.

Install camera technology

Modern technological devices like in-car cameras have numerous facilities to monitor and control risk factors. The dashcams also help to provide evidence when defending fraudulent claims in case you are involved in an accident. 

Dash cams are becoming increasingly popular in fleet management involving multiple vehicles for capturing real-time events and guiding drivers to avoid safety hazards. Insurance quotes will inevitably come down significantly by taking action to eradicate risks.

Store vehicles in a secure place overnight

Vehicles operating during business hours are parked at some places overnight. You have to select a place to park your valuable assets securely. If you can convince your insurance provider that the chance of theft or damage is less while storing vehicles at that location, you will be able to negotiate insurance prices.

Employ drivers with a clean license 

A team of drivers with clean licenses and driving records makes your fleet operations more reliable and risk-free. Insurance providers will often consider drivers’ performance and check whether they have been convicted for unsafe driving, caught for speed violations, or involved in accidents. If one or more drivers have penalty records or other charges, the insurance cost tends to be higher.

Insure drivers of their policy

Therefore, it makes sense to insure accident-prone drivers or those with a track record of safety violations separately and not as part of the fleet insurance. If you have to make claims for this driver or vehicle, it will not increase the fleet insurance premium.

Use vehicles that cost less to insure

Despite regular driver training and selecting experienced drivers, there might be cases in which a few drivers are involved in accidents or incidents. It may negatively impact overall fleet operations and de-motivate the rest of the drivers who have good track records on the road. 

A new model of vehicle with an advanced security system is less likely to be stolen, and the latest safety features safeguard cars against accident risks. The vehicles you use largely depend on your business operations, so there might not be much scope for significant changes. You must take care of the vehicles and ensure keeping them in good condition with regular servicing, reducing risk and making insurance premiums cheaper.

Avoid paying for unnecessary extra items

Fleet insurance providers often offer additional coverage on extra items or accessories, which are not usually necessary. These things can increase the premium amount, although the chance of damage is less, and the cost of replacement or repair is cheaper if you get it done independently. It is better to avoid including such supplementary extras in your policy.

Compare quotes

It is a good practice to compare quotes from different insurance agencies, especially at the time of renewal, to see whether to get a better deal elsewhere. If you do not want to change the existing provider, you may ask for a cheaper rate as a loyalty bonus. 

They may also suggest ways to lower the price. It is necessary to do some market analysis to find the best fleet insurance that perfectly matches the types of fleets you use and your business activities. 


Fleet vehicle insurance becomes necessary to provide appropriate and reliable protection for valuable assets. The first step to deciding on the right insurance policy is to analyze your business needs. 

Small and medium-sized fleets generally may not require insurance protection as they can handle the issues independently. Large fleets involving more vehicles require insurance to cover assets with protection and avoid the burden of huge expenses. You can receive the best quotes by comparing different options and asking the insurer to make a tailor-made policy. A long-term relationship with the insurance company can help you get a better price offer. Discussions with experts to compare premium amounts, coverage, etc., will help you negotiate better with your insurance company. 

Maintain your high-value vehicles in good condition with proper maintenance and appoint drivers with a good track record for such vehicles to minimize the risk factors. It is highly beneficial to install GPS trackers to improve on-road navigation and prevent accidents. 

GPS vehicle trackers can help you monitor your fleet movement and driving behavior in real-time and trace stolen vehicles. You can utilize tracking devices to secure your vehicle against theft or mishandling when parking for long hours. The alert systems will ensure safe driving, and safe parking, and increase vehicle protection. 

Investment in advanced technological systems will ensure better monitoring and security of vehicles and reduce risk factors. It will eventually help you control extra expenses in the long run and bring down the insurance cost while protecting vehicles. 

Matrack’s fleet management system provides several facilities with feature-rich products and services that help keep the vehicles secure. The tracking system constantly tracks the car’s location and movements, generates alerts for route deviations, and guides drivers with safety suggestions to avoid potential hazards. You can collaborate with insurance providers by taking necessary measures to reduce risks and allow them to serve you with better efficiency.

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