You’ve seen the numbers. Almost nothing is going down in price this year—so your fleet insurance going up in 2023 too probably isn’t a big surprise.
What is driving those costs higher? Is there anything you can do about it? Let’s look at some of the big reasons fleet insurance going up is a factor, and what you can do to fight that trend.
Problem: More Risk Factors
Large vehicles are more prone to accidents, which can lead to significant claims and higher premiums. And many industries that rely on commercial vehicles are experiencing driver shortages. This shortage has led to increased demand for less experienced drivers—which increases the risk of accidents. Incurred losses have increased by more than 50 percent in recent years. Insurers are passing that increased exposure on to you in the form of higher premiums.
Solution: Consider investing in driver safety training programs and fleet management technology that can show you exactly what’s happening in your vehicles in real time. Both solutions often translate into direct savings in insurance premiums.
Problem: More Expensive Claims
Newer vehicles with advanced technology and safety features are great for safety and efficiency. But these modern features can be costly to repair, which results in higher-dollar claims. Complex vehicles take longer to fix, and parts costs are up almost 16 percent year over year.
Solution: Set up preventative maintenance programs to ensure your vehicles are in good working order. Regular maintenance can help prevent claims before they happen and keep your insurance costs down in the long run.
Inflation affects everything from the cost of insurance to the cost of fuel and vehicle repairs. And the inflation rate has been sky-high over the last year and a half. Just the labor cost required to fix vehicles has increased more than 14 percent year over year—another cost passed on to fleets.
Solution: Many insurance companies are willing to negotiate rates for long-term clients or those with good safety records if they’re willing to commit to a longer term. It’s worth reaching out to your provider to see what options are available.
Problem: Outdated Plans
If your fleet insurance plan hasn’t been updated in a while, it may be time to evaluate your coverage levels and potential gaps in your policy. Small and medium-sized businesses seeing fleet insurance going up can’t afford to simply renew policies year after year without doing a little more digging.
Solution: You should assess your risk factors and ensure that your insurance policy includes coverage for those risks. It’s worth shopping around for insurance providers to ensure you’re getting the best rates and coverage for your fleet.
To learn more about how businesses and fleets across the United States are saving money, improving customer service, and running more efficiently, without suffering fleet insurance going up in 2023, talk to an experienced Fleet Advisor today to see how GPS Trackit fleet management technology can work for you.