If your business operates any kind of commercial vehicles – from a single truck to a whole fleet of lorries – you are likely to be keenly interested in saving money on the cost of your haulage insurance. After all, savings on the cost of an essential operating cost such as insurance ultimately goes to increase the bottom line of your business profits.
Ways of cutting the cost
- already mentioned is one of the first factors you might consider – fleet cover for more than three vehicles of any shape or size is invariably cheaper than the cost of insuring each one separately;
- what is more, you also enjoy the administrative savings of having just a single renewal date to monitor and respond to for all of your vehicles instead of having renewals scattered throughout the year;
- fleet insurance may be arranged through a number of specialist HGV insurance providers, including My HGV Insurance;
No claims discount
- whether it is for a single vehicle or your whole fleet, any renewal notice needs to be scrutinised carefully to ensure that you are receiving any no claims discount to which you are entitled;
- the no claims discount might be the single most significant way of saving money on your haulage insurance, so it is worth making sure that you derive every benefit from it – considering, too, the additional safeguard of no claims protection insurance, so that the discount is maintained even if you need to make a claim;
- a well maintained lorry is a safer lorry and a safer lorry is less likely to be involved in expensive accidents that require your payment of an excess or which lead to a loss of your no claims bonus;
- keeping your vehicle in a roadworthy condition is not only a legal obligation, therefore, but one which may lead to significant savings on the cost of insurance;
- recently announced changes to the way in which MOT testing is done for commercial vehicles might also encourage closer attention to the way in which you maintain them – details of those changes are the subject of a commentary published on the 21st of January 2016 by HGV UK;
- your HGV insurance is already likely to come with an in-built or compulsory excess, which you have little option but to accept if you want the insurance cover offered;
- in order to reduce the cost of the premiums, however, you might also want to elect a further voluntary excess – the greater your share of the risks, the less your insurer needs to charge by way of insurance premiums;
- if you choose to go down this road, it is important to remember that you may be responsible for the whole of any excess – both compulsory and voluntary in the event of a claim;
- if you are able to restrict insurance cover to named drivers only, this typically earns you a discount;
- this might be a viable option if you employ a regular team of drivers from one year to the next but is obviously more of a challenge if you are hiring on a casual or seasonal basis;
- on the question of drivers, you might want to note that some specialist insurers offer substantial discounts on insurance premiums where your drivers have a proven record of experience – particularly if this is supported by the absence of previous claims.
Haulage insurance may be a significant overhead for your business. By making savings through some or all of these suggested tips and suggestions, you might contribute to the more efficient management of your vehicle point – and, more to the point perhaps, add to your business profits by cutting the cost of insurance.