The life of a courier or haulier often comes with increased risks due to extra mileage to sometimes unknown destinations, fragile or perishable cargo, tight deadlines and the transport of goods that may be prone to theft. All of these risks can push up the price of your courier or haulage insurance, which could be considerable if you own a van or HGV fleet.
Getting the best deal for your business can be time-consuming but worth the investment in the long run. Here are some of our top tips to help you save money on your courier insurance or haulage fleet insurance.
Courier Insurance
1. Always scrutinise your policy details: Make sure you aren’t paying for things you don’t need or that may have become outdated with staff leaving or vehicle changes. Do this at least annually when your policy is up for renewal.
2. Invest in an independent insurance broker: To get the right insurance at a competitive price, choose a broker. Don’t opt for comparison sites as, with any form of motor insurance, one size will not fit all, and you will end up being over- or under-insured. At Tradex, we can get a better deal from policies not on comparison sites and tailor-make the policy to your specific needs.
3. Raise your excess: If you have a good claims history, increasing your excess could be a good way of bringing down your premium. Keep in mind though, the value of your vehicle and the increasing number of miles you may be driving - you don’t want to find yourself too out of pocket should an accident occur.
4. Keep your vehicle secure: Insurance companies like to see that you have adequate security features on your vehicles, especially when you are transporting expensive goods that may be prone to theft. CCTV, dashcams, immobilisers and parking your vehicle in a secure location overnight can all help to reduce your premiums.
5. Pay your courier insurance premium annually: You can save a considerable amount if you pay your premium annually instead of monthly. Many insurers offer a special discount, so always check on the price difference.
Haulage and fleet insurance
As well as the points raised above, owning a haulage vehicle or fleet can prove to be an expensive insurance outlay. Here are some specific areas that could keep your costs down.
1. Named driver policy: A named driver policy, as opposed to any driver policy, can help reduce your premiums as this can seem less of a risk for your insurers. However, it is better to only add drivers to your policy with a clean driving licence or only minor convictions, such as speeding. Also, younger drivers could push up the premium price, so check how this will affect your policy.
2. Vehicles with cheaper repair costs: Whether you are investing in a single vehicle, or a whole fleet, it pays to choose a popular make of vehicle. Insurers take into account the cost of repairing a vehicle and, if parts are relatively cheap and easy to find, they are more likely to reduce your premium.
3. Insuring a fleet: If you have more than one vehicle in your business, it may be more economical to opt for fleet insurance. This can reduce the cost of your premium as it keeps down administration costs and special discounts can be given on multiple vehicles.
4. Use your no claims bonus: If you have no claims bonuses built up over several years on previous insurance policies, you could save up to 60 percent on new cover. If you have significant no claims, it may be worth paying a little more to protect it so that it remains at a certain level should you need to make a claim. This will be limited to a certain number of claims per year, so think hard before you make a claim. If it is only for minor damage, it could be better to pay for the repair yourself rather than reducing your no claims.
5. Invest in telematics If you own a haulage fleet, investing in telematics or GPS trackers, can help to keep your costs down by preventing accidents and reducing inefficiencies. Insurance companies are likely to reduce your insurance premiums if you invest in trackers as drivers who are being monitored tend to drive more safely, and it is easier to recover the vehicle if stolen.