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Insurance Experts Weigh In on How to Reduce Costs

Est. 3 min read

As a fleet, one of the most significant costs you face is insurance. With profit margins in the industry averaging 5%, and insurance costs rising by double digits over the past three years, fleets need to employ strategies that will reduce liability and lower insurance expenditures.

John Simms, Senior Risk Advisor at HNI, and Jeff Davis, Vice President of Safety at Napa River Insurance Services, listed strategies fleets can use to reduce their insurance costs and obtain fair rates during the Week of Webinars – Safety Edition session “Insurance Cost Triggers and How to Reduce Them.”

#1: Be Transparent With Your Driver Data

Insurers are looking for long-term partnerships, and the foundation of any partnership is transparency. While many fleets are cagey about sharing their data with insurers, this attitude is more likely to hurt than help. CSA scores alone don’t give a full picture of your fleet’s safety, and adding more context to those scores can show that your fleet is safer than the CSA system indicates. Sharing data also shows insurers that you’re willing to be upfront with them about your safety, which can go a long way toward building a lasting relationship.

#2: Develop an Action Plan to Shore Up Weak Spots

Insurers want to see that you understand your fleet as a whole, including its weaknesses. They’re not merely gauging risk based on your data alone; they’re also gauging risk based on the people running your fleet. If you can demonstrate that you’ve identified areas where your fleet can improve safety, and you have a plan in place to make those improvements, insurers will be more likely to give you a reasonable quote.

#3: Demonstrate Your Safety Culture with a Walkthrough

Insurance companies understand that a strong safety culture can mark the difference between a safe fleet with a one-off incident on their record and an unsafe fleet with a similar CSA score. Demonstrating your safety culture requires transparency, and a walkthrough of your fleet is the ultimate form of transparency. To quote Jeff Davis:

“You can sit in a dispatch room and tell by the way dispatchers are talking to drivers as far as what kind of culture that company has.”

If you have a strong safety culture, you should be excited to show that to any agents you’re working with. If you offer your agent the opportunity to visit your fleet, it shows you are confident in the safety culture you’ve built.

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