Company car drivers guilty of driving up insurance costs

1 in 5 road accidents involve a company car and insurance experts say businesses are to blame for spiraling insurance costs - not just spurious whiplash claims made by cheeky chancers.

Over the next 12 months 65% of all company car drivers will report an accident.

Martin Nugent, at commercial insurance broker UK & Ireland Insurance Services, said fleet managers of company cars must smarten up their act:

Bad drivers are burning company profits. Better drivers use less fuel and reduce wear and tear on tyres, brakes and clutches. The good driving by most employees is being spoiled by the careless actions of a minority.

Very often there is a feeling of íits not my car so Iím not bothered about a bumpí. Clearly, if they owned the car they wouldnít thrash it around as much as they do. For this reason driver incentives should be put in place to reward careful drivers.

Fleet insurance premiums are likely to rise by the end of the year. This will affect fleets with poor claims experience first. The best companies are taking corrective action now to minimise the impact of the hike.

Nugent says that canny company bosses are investing in company car fleet management audits that enable them to reduce motor risks, minimise accidents and reduce premiums:

Companies with fleets of over 30 vehicles are ordering their fleet managers to work with their insurance brokers to undergo a risk management investigation to find out how and where they can slash their insurance premiums. Pressure from Health & Safety officers also means that driver training is seen as an important part of employee welfare.

Safety seminars, CD-ROMís and training logs are becoming more popular. The benefits are clear to see. Reduced accidents, fewer staff injuries, less vehicle downtime, reduced insurance premiums and increased residual value of vehicles are all major benefits that are easily achieved.

For further information please contact
Peter Davies, peter@rmspr.co.uk