Fleet Vehicle Insurance Savings: Proven Strategies Every Fleet Manager Should Know
How to Save Money on Fleet Insurance – What You Need to Know
If you manage a company vehicle fleet, you’ll know insurance can be a big cost. But did you know it’s possible to cut your fleet insurance bill by up to 20%, or even more, without reducing cover?
This blog breaks down the key tips from a white paper by our Global Network partners Fleetcompetence, a company with over 20 years' experience helping businesses save money on fleet insurance.
What Does Fleet Insurance Include?
Fleet insurance can cover:
- Third-party insurance – this is legally required and covers damage to others.
- Passenger insurance – protects employees travelling in company vehicles.
- Own damage – covers damage to your own vehicles (optional for larger fleets).
- Extras – like breakdown cover, legal help, or cover for personal items.
Many fleets pay for cover they don’t really need—reviewing your policy carefully can save money.
Why Fleet Insurance Costs So Much
Three main things drive up your insurance costs:
- Claims - Every £1 you claim could actually cost your business £1.85 once admin costs and tax are added. That’s a big mark-up.
- Insurer Costs - Some insurers spend heavily on big offices and marketing—and those costs are included in your premium. Choosing efficient insurers can save you money.
- Insurance Premium Tax (IPT) - In the UK, IPT is 12%, and in some European countries it’s up to 20%. Choosing policies with deductibles (where you pay part of the claim) can reduce both your premium and the tax you pay.
How to Cut Costs: Real-World Example
Let’s say your average claim per vehicle is £750.
- With no deductible, your insurer charges a premium of £1,154 + tax = £1,385 total cost.
- With a £600 deductible, your cost drops to just £277.
That’s an 80% saving just by changing how your cover is set up.
Claim Prevention = Big Savings
Most accidents in fleets are caused by a small number of drivers. Just 20% of drivers can cause 80% of your claims.
By improving driver behaviour, training, tracking, and setting standards, you can:
- Cut accident rates
- Reduce insurance costs
- Save up to 50% on own damage claims
Common Questions Answered
- Do I get a discount for using telematics?
Only after it lowers your claims not upfront. - Are electric vehicles more expensive to insure?
Yes, for damage to your own vehicle but they usually have fewer third-party claims because of safety tech. - Is saving money hard?
No! Companies like Fleetcompetence handle everything from reviewing policies to negotiating better deals. - Will changing insurers affect how my claims are handled?
Yes and for the better. Some insurers settle claims quicker and more fairly.
The Fastest Way to Save
Fleetcompetence (represented in the UK by LetsTalkFleet) can help you:
- Benchmark your current policy
- Find smarter insurance options
- Maintain savings long-term with tools like RiskMonitor
They’ve already saved over £100 million for fleet operators across Europe.
You can read or download Whitepaper below today.
LetsTalkFleet can provide independent impartial advice on the all aspects of Fleet Vehicle Insurance strategies for your business so please get in touch with any specific enquiries you have, we are available on 0330 056 3335 or via email contact@letstalkfleet.co.uk .