The Truth About Rising Insurance Costs and How Fleet Managers Can Take Control

Increasing premiums have been on the rise in the UK, and as fleets grapple with these increasing costs, understanding the causes and exploring strategies to mitigate them is essential.

Why Are Insurance Premiums Rising?

Increased Road Accidents – More vehicles on the road means more accidents.
Inflation & Repair Costs – Advanced vehicle technology increases repair costs.
Fraudulent Claims – Crash-for-cash scams and inflated claims drive up premiums.
Vehicle Theft – Over 61,343 vehicles were stolen in the UK in 2024, impacting insurance rates.

How Can You Take Control?
Identify & Manage Risks – Use claims data to pinpoint high-risk areas.
Driver Training & Incentives – Encourage safer driver through training and bonus schemes.
Technology Solutions – Dashcams can dispute claims, and trackers can prevent theft.
FORS & Operational Licences – Implement fleet management best practices to ensure compliance and efficiency.

For some, increasing your excess can also lower your premiums, although it depends on your insurer and claims history. Some insurers may offer discounts for higher excess contributions. While the savings may not be immediate, it can benefit the industry-wide claims pool, potentially impacting long-term pricing.

How Can You Reduce Your Premium?

Regular Policy Reviews – Ensure adequate coverage without overpaying.

Monitor Claim Frequency & Procedures – Proactive management can prevent excessive claims.

External Factors – Consider road conditions and operational risks.

Is There Any Truth To The ‘Golden Hour’?

Prompt claims reporting can help reduce inflated costs, with delays likely to increase final claim amounts. Insurance companies place great importance on how quickly individuals report an incident – ideally within the first hour.

This is where technology becomes a vital tool for drivers, enabling them to gather and share all key details effortlessly: the other driver’s and vehicle’s information, exact location, date and time, witness details, attending officer’s name, and more. A structured process helps ensure all necessary information is captured, reducing reliance on memory and minimising the risk of forgetting or overlooking details that could support a claim.

By investing in fleet management technology, to implementing risk management practices and driver training, you can not only protect against future premium hikes and reduce insurance costs, but also enhance the safety and efficiency of your fleet operations.