What type of coverage do you need?

Female Commercial Van Driver

Commercial auto insurance can get expensive. Still, active automobiles are an important part of any business. While your fleet maintenance costs may be low, your policy costs might get higher.

How can you cut costs? One reliable cost-reducing angle to consider: safety.

Driving Safe To Cut Costs

Any business operation involving vehicles is a risky one. A lot of insurance providers understand this. They are thus wary of giving high-value policies to businesses which aren't proven to be safe.

On your end, you can take a few steps to make sure your fleet is as safe as possible. In doing so, you'll often get better premium offers. You'll also likely have a wider range of deductibles to choose from. Below, we've listed four big safety practices company fleet managers can follow.

1. Require Employee Driver Training

First, require all fleet drivers to undergo training and vetting. This should take place before they're employed — but it shouldn't end there.

Don't let employees with bad driving records enter your fleet, either. In the eyes of insurers, a fleet comprised of negligent drivers is negligent itself.

To avoid hefty commercial insurance costs, check each employee's driving record often. If a driver starts accruing violations, you might want to revoke their fleet access. Otherwise, your entire fleet's safety value will decrease.

2. Require Safety Driving Courses

Once your employees have training, they'll need to follow business-specific driving practices. Safe driving courses will teach your employees about unsafe practices. They'll also serve as a foundation upon which healthy habits can grow.

Meanwhile, a commercial auto insurance provider who checks your records might take note of this behavior. Drivers who've logged hours in safety courses might get better auto insurance rates. As the owner of a fleet comprised of safe drivers, you'll benefit from lower auto policy costs yourself.

3. Be Strict About Vehicle Use

A reliable business is predictable. Be strict about company vehicle use, and keep detailed logs about the following:

  • Vehicle use hours, including starting and ending destinations.
  • Vehicle maintenance needs, both routine and critical.
  • Vehicle depreciation and overall safety levels.

The better you know your vehicles, the better you can manage your fleet uses and costs.

4. Install Safe Technology

Finally, you should increase the fleet's security value. Anti-theft alarms, GPS devices and high-grade locks will make your assets much safer. GPS tracking is a valuable investment that can lead to commercial auto insurance price reductions. This device notifies you about unsafe driving habits, such as radical speed changes.

Your fleet's value will increase over time if you assure its safety. As you maintain policy coverage, new avenues will open in terms of cost efficiency. Just make sure you're able to earn them via avenues of your own: safe roads navigated by safe employees.

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