Fleet owner claims

Fleet insurance policies allow businesses to cover cars, SUVs, trucks, vans and more in a single policy. It can be cheaper than purchasing individual policies for each vehicle and typically offers volume-based discounts.

Pros of fleet ownership include economies of scale, lower wear and tear on vehicles and a more flexible utilization of equipment. Cons include higher operating costs, challenges with parts and labor shortages and increased liability risks.

Coverage

Many fleet managers may not realize it, but external factors can have a big impact on the premiums they pay for yearly fleet vehicle coverage. Things like fuel prices, medical costs and legal proceedings are just a few examples. Fortunately, there are some internal variables that you can control to help lower your insurance rates. For example, creating a framework of programs and practices that promotes safe driving (and efficient vehicle usage) can signal to potential insurers that you take the safety of your drivers, pedestrians, and property seriously. That will likely make them more willing to offer you a more affordable policy.

Another thing to keep in mind is your company’s insurance history. Most insurance providers will look at a business’s past collision and claim history when determining the risk associated with a fleet vehicle coverage policy. If your business has had a lot of incidents, it might be worth looking into a different insurance provider that offers more competitive rates for high-risk companies.

You can also cut down on the amount you spend on a fleet vehicle coverage policy by opting for a monthly payment schedule. Normally, insurance providers will add a service fee or interest when you choose to make payments on a monthly basis. However, if you go this route, you’ll be able to save money on the upfront cost of the policy, and you can still benefit from monthly payments if you need to cancel the policy.

The type of vehicles you have in your fleet will also affect the cost of your coverage. For instance, cars used for taxi services typically have higher rates than those that are only used for delivery purposes. Additionally, if your fleet vehicles are being used for commercial purposes, you’ll need to meet certain minimum liability requirements established by the state.

Finally, your business might want to consider adding optional coverages to your fleet vehicle coverage policy. These extras can protect you in the event of a catastrophic accident. For example, a collision coverage can protect your business from the cost of vehicle repair and replacement. And, a comprehensive coverage can cover the cost of repairs resulting from damage caused by non-collision events.

Policy Limits

Fleet owners can save money on insurance premiums by shopping around for the best rates. They can also help reduce their rates by ensuring that vehicles are used for business purposes and only by authorized drivers. In addition, fleet owners should make sure to review the limits of their policies to ensure they’re getting adequate coverage for any incidents that occur. For example, it’s important to understand the difference between occurrence and aggregate limit amounts. An occurrence limit covers the amount that your policy pays for one incident, while an aggregate limit covers the total amount that your policy will pay in claims during a single year.

Insurance stakeholders told FleetOwner that the most important factors that influence the cost of fleet owner insurance include safety records, driver training and driving history, where and how far from headquarters tractors operate, and the number of vehicles in the fleet. Fleets should also consider adding in-cab, driver-facing video technology such as dashcams, which can help reduce claims and improve fleet safety.

The most affordable fleet owner insurance typically comes from non-trucking insurers, such as electricians, plumbers and locksmiths. However, some trucking companies are starting to offer more comprehensive policies. These may cover things like cargo, general liability and bobtail. These types of policies are ideal for large fleets that have more than 10 vehicles. In addition, they’re often cheaper for businesses that need to haul specialized loads or transport hazardous materials. This type of fleet owner insurance can also help companies meet regulatory requirements and protect their assets from expensive lawsuits.

Subrogation

The subrogation provision in a fleet owner’s insurance policy allows the company to recover money from third parties that have caused an accident. This can be a huge benefit to companies who are dealing with multiple claims at once, which can quickly add up and strain budgets.

The process of pursuing subrogation can be time-consuming and complicated, and it’s important to know how to navigate the intricacies of this area of insurance. Fleet owners may need to consider outsourcing this task to experts who have the proficiency, connections and resources to ensure no money is left on the table.

While it’s essential to take preventive measures like proper screening, a solid set of policies and consistent monitoring, accidents can happen no matter how careful you are. When they do, it’s essential that fleet managers and safety teams are prepared to mitigate the impact through a robust subrogation strategy.

Waiver of subrogation clauses are frequently found in construction and rental contracts, as well as lease agreements. These provisions can be a great way to avoid costly legal disputes and the stress associated with them. They can also help eliminate the need for lengthy negotiations and judicial procedures, which can increase risk for certain parties.

In the trucking industry, a waiver of subrogation clause in an insurance policy can be particularly helpful. With high turnover and a hardened insurance market, trucking companies can be juggling a lot to turn a profit. This makes it even more critical to maximize every opportunity for recovering funds from an accident.

A dedicated team of subrogation professionals can provide valuable support to fleets that need to recoup losses from past collisions. Experts can assist with the collection of deductibles, loss of use expenses, rental car costs and diminished value claims.

When it comes to subrogation recovery, many fleets are leaving money on the table by not taking the necessary steps to pursue their rights. Oftentimes, insurance providers will pay as little as possible, even though by law they owe the fleet 100 percent of the damages. A specialized team can ensure that no dollar is left on the table, which can be a significant source of revenue for transportation companies.

Claims Management

Managing the risk of accidents and handling damage that does occur is a significant challenge for any fleet owner. Effective processes are essential for reducing costs and the time it takes to resolve them. Fleet managers need to make sure that every incident is reported promptly and that it is tracked through to its final disposition. These efforts are facilitated by the right tools and technology.

When an accident occurs, fleet owners need to get to work immediately to ensure that vehicles are safe for driving and to assess the damage. They should be able to provide insurance companies and repair shops with detailed damage reports that contain photographs, text descriptions, and vehicle inspection data. Fleet Response Mobile is a process automation platform that streamlines and simplifies this entire workflow, making it faster and easier for drivers to submit damage reports on the go, providing a higher level of productivity, more accurate reporting, and less manual processing.

The right claims management software is key to ensuring that a claimant’s experience is as good as possible. It is essential to improve and evolve key claims processes to be more productive, cut costs, and improve customer service. This is more than just a checklist of items to be addressed; it is a journey of continuous improvement.

To control the cost of repairs, fleet owners should invest in a proactive program to address frequent sources of damage. Keeping vehicles in top condition is one way to do this, but other programs like driver training and a drug-free workplace can also help to keep the costs of accidents down.

Ultimately, fleets need to work with their insurers to find affordable coverage in this challenging market. By staying up to date on their claims history and demonstrating that they have programs in place to reduce risks, fleets may be able to negotiate better policies.

In addition to reducing insurance premiums, the best way to control fleet costs is by minimizing accidents. Taking steps to prevent accidents from occurring in the first place is essential, including regular maintenance and a safety culture that emphasizes safe driving habits.