However large or small your company is, including a single owner-driver business, cost containment will probably be uppermost in your thoughts in terms of business management.
It’ may not be widely known that in practice, you may have a number of techniques open to you in terms of reducing your chauffeur insurance premiums. Below, some of these will be discussed and highlighted as they might make a significant difference to just how much you are paying out each year for your cover.
• Increase your voluntary excess – if possible.
The excess is simply an amount of money that you will pay towards the cost of any future successful claims. In some private hire insurance terminology, it is sometimes also referred to as “the first part” of your claim. It exists in order to help keep premiums down for policyholders.
Many policies will carry an amount that is mandatory but some may also offer the possibility of voluntarily increasing the excess in return for a reduced premium. It is worth noting that whilst your premiums may be reduced, any payments on claims will be higher due to increasing the excess.
• Select “named driver” policy options rather than “any driver”.
Insurers typically welcome the opportunity to both reduce the total number of people that may be driving a vehicle overall and have some degree of discretionary say over just who drives it.
Broadly speaking, if you potentially include drivers under cover who are young, inexperienced or carrying significant motoring convictions, you would be adding to the risk and therefore typically also increasing your premium.
• Protect your no claims discount by avoiding, where possible, claims for relatively small amounts.
It may be far more cost-effective for you to pay for a small repair yourself rather than put your discount at risk by passing it through to your insurance claim system.
• Consider the public domain safety standards of the vehicle concerned.
On the whole, insurers welcome vehicles that have a verifiable and auditable high safety index as measured by international standards. As you might expect, very high performance vehicles or those with an unproven safety record may inevitably generate higher premiums.
• Think carefully about the vehicle’s value when purchasing it.
Of course, if you are targeting the prestige executive marketplace then your clients will expect prestige executive vehicles. However, for more everyday private hire purposes, it might be advantageous in insurance terms to select models that are perhaps not in the top price brackets and therefore potentially amongst the most expensive to insure.
• Make sure that your vehicle or vehicles are securely garaged and under security when not in use.
Insurance providers may require higher premiums if your vehicle or vehicles are parked overnight on the street or open driveways. For some very expensive vehicles, some insurers might even decline cover if that’s the case.
• Purchase and install additional anti-theft devices (e.g. trackers).
Prestige marques will typically come with enhanced security systems but lower value vehicles may be less well equipped in that respect. Your insurance provider may welcome indications that you are taking security seriously by installing additional measures and reward it accordingly with lower premiums.
The above list is by no means exhaustive and there may be other steps you can take to help keep your insurance for chauffeurs cost-effective. An experienced provider of chauffeur insurance should be able to assist you by offering further options in that respect.
Aston Scott, as a specialist chauffeur insurance broker, will be able to help you with any questions arising out of the above. Please contact us today on 03300 085045 to see how.