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Hauliers warned to act against rising insurance costs

  • 28 February 2013
  • By Christopher Walton

A survey of Road Haulage Association members has showed that 58% have reported a rise in insurance costs in the 12 months ending 30 September 2012, compared to just 14% seeing a reduction.

Operators “concentrating on safety concerns with a shrewd eye for a deal managed to get reductions of 25%, while others got a 45% increase”, it found.

In response insurance experts have said operators could save thousands of pounds a year in the cost of insurance premiums if they focused more on improving their safety records.

Peter Blanc, CEO of insurance broker Oval Group, said some operators were paying “less than £2,000 per artic” others are paying “£10,000 per vehicle”.

Installing technology such as forward facing accident cameras and telematics systems sets operators apart when insurance rates are being set, explained Blanc.

“The culture of the organisation is the single most important factor,” he added. “If drivers are told time and again the most important thing is to get from A to B safely and not have accidents on the way, then that’s what they will focus on.

If, on the other hand they are told the most important thing is to get as many deliveries done in a day as possible, then safety won’t be high on their list of priorities.”

Nick Plowman, director of Smart Witness, which installs on-board cameras in CVs, said the “massive disparity” in what operators pay for insurance is largely dictated by the frequency of claims made.

“The key to reducing premiums is to get the number of claims down. If you have a high freuqency then there’s the potential to have a high claim output. That’s why some operators will have a higher excess.”

Plowman added that installing cameras in vehicles cut claims by a minimum of 30% which could translate to a 10% saving in insurance premium.


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