When a fleet manager tells us they want to reduce costs, what they usually mean is they want to reduce the premium. These are different things, and confusing them leads to decisions that save on the bill but increase the overall cost.
Items that do not appear on the bill
The days the vehicle is out of service and needs to be replaced or stops generating revenue. The deductibles paid throughout the year. The administrative hours dedicated to claims, assessments, and workshops. And the most expensive deferred effect of all: this year's claims determine the premium for the next three years. Combined, these items often exceed the annual premium.
The ratio the insurer looks at
Renewal is decided based on the relationship between claims paid and premium received, calculated over several periods. Above a certain threshold, the conversation shifts from price to whether or not there is available capacity. Knowing this ratio before renewal, rather than discovering it in the offer, allows you to come prepared with arguments.
Where claims are concentrated
In low-speed manoeuvres: reversing, parking, entering and exiting docks. These are low-cost damages, with very high frequency and disproportionate administrative costs. They account for a large portion of the number of claims and a very small portion of the total amount, and are exactly the type of claim that should be retained through a deductible rather than processed.
Measures that the market does reward
Telematics with driving monitoring, regular driver training, a written vehicle use policy, and a digital amicable claim procedure with mandatory photographs. These are not abstractions: they are data presented in negotiations that justify why future claims will differ from past ones, which is the only thing an underwriter can assess.
Standardise before negotiating
Many fleets carry vehicles with different expiry dates, inherited from successive purchases or leasing. Unifying into a single policy with a single expiry date and automatic addition and removal of vehicles reduces administrative costs, avoids coverage gaps when adding a vehicle, and provides volume for negotiation. It is the most boring measure on this list and almost always the most profitable.
