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Fleet Insurance: Tips To Lower The Cost Of Running A Fleet

Maintaining a fleet of cars is no doubt not a cheap proposition. However, there are several measures that you can adopt to lower your total cost, including the cost of fleet insurance premiums, and prevent an upward spiral. These include:

Fuel Efficient Driving

If you think that the cost of fuel is not within your control, you are not entirely wrong. Sure you do not have anything to do with the price that diesel or gasoline is currently sold for. However, you have a say on how much fuel you buy. You can encourage your fleet drivers to drive in a more fuel-efficient way. Though your daily savings may seem insignificant, you will be surprised by how much money you will have saved by yearend. Likewise, you can instruct your drivers to find places to refuel where the cost of fuel is comparatively lower because of the location and local competition. This will require advanced planning, but will definitely bring some savings you will otherwise spend if you refuel at a more expensive area.

Fleet Insurance Cover

To lower the insurance cost for your fleet, you need to make sure that your incident rate is down to a bare minimum. It is a fact that the higher your incident rate goes, the more expensive your insurance premiums becomes. In order to keep your insurance expenses low, therefore, you must make sure that your drivers perform at optimum levels. This can be achieved by allowing them to take short breaks during long drives, and limiting their driving hours to something that is more manageable. Another important thing that insurers consider is regular vehicle inspection, so make sure that it is done. Also, training your drivers for all possible driving conditions can help.

Optimizing Your Fleet Size

You can also lower your fleet insurance overhead by cutting down the size of your fleet. Of course, this is not advisable if your operations would be adversely affected. Thus, you must first determine the number of vehicles you need to maintain in your fleet, and decide if you need to reduce, and by how many. You have to consider that reducing your vehicles may result to additional workload for the remaining units, so you need to weigh the pros and cons of each of your options before coming up with a decision. The idea is to lower your cost without compromising smooth operations.

Setting Up a Tracking System

You can track and monitor the performance of each vehicle in your fleet by setting up a tracking system. Use the system to record data including driving behaviour, fuel consumption, and driving speed. Knowing that they are being monitored, your drivers will drive more cautiously and as a result, you will be able to lower your overall cost from wear and tear.

Conclusion These are only some of the many ways that can help you lower the cost of maintaining your fleet. Get in touch with your fleet insurance service provider form more information and saving tips.