Fleet vehicles are an essential part of any business, but having those vehicles on the road also means that you’re responsible for any damage or injury they cause.
One of the most important aspects of running an automotive fleet is keeping track of your third-party insurance costs.
To make sure that you are complying with all regulations, you need to know how much you’re spending on insurance to adjust your vehicles as needed to keep your premium costs down and your fleet safe.
Third-party insurance covers the cost of damage to other people’s vehicles and physical injuries sustained in crashes involving your fleet vehicles, but it can be expensive to maintain – especially if you’re going over the minimum coverage requirements.
A good insurance tracking system makes it easier to do this, but not all tracking systems are created equal – it’s worth figuring out which one works best for you and your business. The three best ways to keep track of third-party insurance costs are.
Work With An Agency And A Third Party Administrator
Third-party insurance costs, including workers’ compensation and health care coverage, are some of an agency’s greatest concerns. That’s why fleets need to work with a third-party administrator (TPA) that offers fleet insurance managers and supervisors tools.
A TPA can help keep track of costs incurred regarding your company’s workers’ compensation and health care coverage. According to one industry report from 2015, it costs fleets nearly $9 billion annually in claim expenses alone; mitigating these expenses is crucial for business success.
But where does one start? To keep your rates low and save money on third-party insurance costs and time spent on these matters, consider working with an agency that offers fleet management analytics tools designed specifically for fleet managers and supervisors. There are many fleet management software packages available now.
Create A Spreadsheet
With third-party insurance, it can be tempting to put off getting quotes. After all, if you haven’t purchased vehicles yet, you might not even know what kinds of coverage you need. But trying to remember details after your cars have been bought is next to impossible.
Try keeping a spreadsheet that tracks each vehicle’s make and model number and year (if known), purchase date, and any notes about special features or circumstances that may affect coverage (like dents on a previously owned vehicle). Once completed, start shopping for policies for each car according to its make and model.
You can then keep a running list of insurance quotes and coverages alongside your spreadsheet. That way, you’ll have a full record in one place that you can refer back to as needed, such as when buying or selling vehicles in bulk. When it comes time to renew or purchase additional coverage, all you’ll need to do is update your spreadsheet with new quotes and details.
Use The App From Your Provider
Many insurance providers allow you to access your account on their mobile apps, so you can look at your policy whenever you’d like. Enter your information and password for logging in, then select Manage My Policies.
You’ll be able to see exactly how much you owe in coverage and will have instant access to renewing or adding new policies. However, if you’re looking for a policy that isn’t offered through your provider’s app (or if they don’t offer an app), other ways allow you more freedom and flexibility.
Using your insurer’s app can help keep you in check, but if you’re looking for something a little more thorough (or want a backup), plenty of third-party apps do the same thing. Some offer additional features, such as text alerts or notifications about price changes for certain parts of your policy.