Motoring Your Way Out of the Recession

Managing work-related vehicle risks can be of great benefit to yourbusiness and can help you save money. We examine the changing nature of motor fleet risks and how the recession may impact on them, with tips on how to best manage the risks:

Driver Fatigue

In times when household income may be dropping, the incentive for the wage earner to work longer hours increases. Keep a close eye on your drivers and give journey scheduling some serious thought. Ensure they are not working long hours without appropriate rest.

Increased Theft

Theft rises in difficult economic times so it is important to review your security. Look at fuel storage tank and key security. Where possible, remove catalytic converters from stock vehicles. Vehicles that aren't in use should be stored in a secure compound or garage (ensure that any parking areas are designated and approved on your ‘O' licence if they are LGVs).

Claims

As a business owner who employs drivers, you can help reduce insurers' claims costs, which can in turn affect insurance premiums. Claims costs have been increasingly hit by drivers using credit hire vehicles or credit repair instead of the free services offered by the liable party's insurer. If an accident happens, notify your insurer immediately so if the third party requires a credit hire vehicle or credit repair, and you may be held liable, your insurer can offer these services reducing claims costs and streamlining the process.

Fraudulent Claims - A rise in fraudulent claims often correlates with an economic downturn. Undetected fraudulent claims increased by 24% in 2008 from two years previous, with detected fraud also increasing by 30% from 2007 to 2008 (www.abi.org.uk). Don't fall victim to these criminals' illicit gains. Make sure that your drivers know what information to record in the event of a collision e.g. full details of the other drivers, vehicle damage and also other passengers as phantom passenger claims are on the increase. Encourage them to make a note of witness details and where possible, take discreet photos of the scene without confrontation. Also, make sure that your drivers are familiar with the practice of ‘staged accidents' - those in which other drivers cause a deliberate collision in order to make a false insurance claim. If your driver suspects that the accident may have been staged, involve the police and report it to the insurer immediately.

Driver Checking

In tough times, unemployed drivers may be tempted to use fraudulent means to get a job: thorough vetting of prospective drivers is therefore crucial. Make sure references are followed up and insist on seeing original licences to check entitlement. Use a reputable agency and make sure that all new drivers, even if they are only temporary, are checked and receive adequate training and instruction.

Vehicles

If you are downsizing your commercial fleet, remember to remove the disposed vehicles from your operator's licence and save costs by cancelling any maintenance, fleet management contracts or breakdown cover.

When using temporary hire vehicles, make sure they're declared on your insurance policy or that provision is made to cover them within your existing motor policy. If ‘O' Licensed vehicles are being used, be sure to declare them on your Operators Licence if they're hired for more than one month, as it is an offence not to do so. And don't forget to tell us about your motor fleet risk management activities as we can use this information to help to get you the best insurance premium.