The new financial year is a critical period for fleet owners to evaluate their insurance policies and optimise coverage while minimising costs, underwriting agency Fuse Fleet Director Luke Kelly says. 

Bundling policies, better risk management and embracing technology can all help manage the cost of fleet coverage, he says. 

The average monthly cost of fleet insurance in Australia is estimated at $96-154 per vehicle and has “surged significantly” over the past decade, with commercial auto insurance up by almost 50%, Fuse says. 

Mr Kelly says it is “not all doom and gloom” though, and the new financial year presents fleet owners with an opportunity to assess insurance policies and navigate the price hikes. 

“By proactively reviewing coverage, engaging with insurance providers, and implementing effective risk management strategies, fleet owners can ensure their assets are protected while minimising costs,” he said. 

To fight the rising premiums, fleet owners should assess their insurance needs by considering the size and type of the fleet, the nature of operations and the potential risks involved. Assessments identify any gaps in coverage that need to be addressed.  

Fleet owners are also advised to consider historical claims data of their fleet to understand areas where risk mitigation measures can be implemented. 

Choosing a higher excess will lower premiums, though Mr Kelly notes “it's a balance between lower premiums now and potentially higher costs later”.  

“It’s important to set an excess at a level that your business can afford to pay if a claim needs to be made,” he said. 

Analysing accident data, identifying trends, and conducting driver training programs can reduce incidents and claims, and Mr Kelly says insurers often appreciate proactive risk management efforts and may offer reduced premiums or policy incentives to fleets that demonstrate a commitment to safety. 

Finally, Fuse says advancements in telematics and vehicle tracking technology offer fleet owners the chance to gain insights into driver behaviour and “get access to fairer premiums and improve overall efficiency”.   

Fuse offers behaviour-based insurance analytics that leverages the telematics data in order to tailor premiums based on actual driving behaviour.  

“Fleet owners can use this time to explore such programs and determine if they align with their cost-saving and risk management objectives,” Mr Kelly said. 

Fuse says its connected insurance and claims management solutions is a unique offer in Australia, and it is introducing digital insurance incentives to promote safer fleets and lower premiums.