Motor rates have been increasing in recent years, and it’s understandable if haulage contractors are wondering when this will stop.
The unfortunate answer is, they probably won’t. Changes to the personal accident discount rate, also known as the Ogden rate, and uncertainty around Brexit are just some of the external factors affecting insurance rates. The Motor Transport annual cost tables report an average cost per 44t HGV in 2018 of £3,924 + Insurance Premium Tax. With increasing claims inflation and a diminishing appetite in the UK motor insurance market, it is fair to expect further increases to these costs.
Despite, or perhaps even because of these increases, it’s more important than ever before to ensure your drivers and your fleet are comprehensively covered.
As a haulage contractor, three of your largest assets are regularly out on the road together: your drivers, your vehicles and your brand.
Start with your staff – care for them and they will care for your vehicles. Build a culture of care within your business, by rewarding those who care and seeking out those who don’t. If staff care for your vehicles, they will have fewer accidents, which means fewer insurance claims. This in turn protects your brand and maintains its reputation as a safe company to work for.
Another way to counteract these increases is to choose your insurance partners carefully. As the saying goes, buy cheap, buy twice! Look at the holistic offering from an insurer/broker and determine how they can care for you. Many insurers and brokers offer risk management advice to help you manage your costs and improve your claims experience. Buy on price and you will consistently be disappointed; as has been demonstrated by the recent collapse of unrated motor insurers such as Lima (Alpha) and Enterprise.
Choose a financially stable insurer and you’ll receive the peace of mind that comes from knowing you’re covered not only now but in the future.
If you’d like to speak about your motor insurance, call Kevin McAree on 01206 931407 or email email@example.com.