Behaviour-based fleet insurance — Save money with smarter cover
Written by Zego
The cost of traditional insurance can be hard to predict, with no tools or data to help fleets plan ahead.
So imagine a world where you get full visibility of how much you’ll pay. Where you’re rewarded for driving well, and you can see how your fleet is doing on the roads every day.
Before behaviour-based insurance, the cost of your cover was based on different risk factors, some of which were a little outdated. Insurers could only use things like a driver’s age, location, occupation and vehicle type to calculate your risk (and your insurance costs).
What about driving behaviours?
We understand how significant the price of insurance can be to fleets. We know that when you can control how much you pay, managing your overall fleet costs and driving business growth becomes easier.
As a fleet manager, it’s important to know how your drivers’ behaviour on the roads can affect the cost of your cover. Our goal is to give you the data, the tools and the control that you don’t get with traditional insurance.
So say hello to the latest feature in our Fleet Portal, and a new era of insurance — behaviour-based insurance.
What is behaviour-based insurance?
Behaviour-based insurance (BBI) is as simple as it sounds — the safer you drive, the less you pay.
Using our Fleet Portal, you can now unlock savings of up to 15% at renewal. And the best bit? You don’t have to wait until you renew to see how much you’re going to save.
With our smart BBI feature, you get full visibility. Your savings are updated regularly, so you’re able to make changes where needed to save more.
We believe fleets should be rewarded when they have good risk-management practices in place. That’s why our Fleet Portal gives you the tools and insights you need to control your fleet’s performance.
The better your fleet’s risk profile, the more your savings grow.
How does behaviour-based insurance work?
BBI is based on three factors:
Your fleet’s risk score gives you a quick snapshot of your risk profile. It’s calculated using the data collected by our telematics provider. This data takes into account harsh driving events that happen within your fleet — things like fast cornering, heavy braking and speeding.
In the Fleet Portal, you’re able to see harsh events that have happened, then use the findings to reduce the risk of them happening again. This helps to improve your fleet’s risk score. Achieve a risk score of 96 or more and you could unlock a 5.5% rebate at renewal.
Claims reporting time
Reducing the number of harsh events helps to improve your risk score. And in the process you’ll help to reduce the number of accidents and claims within your fleet.
When it comes to claims, reporting accidents as soon as they happen makes a big difference to the cost. Report claims within 24 hours and you could save 2% at renewal.
Your fleet’s loss ratio is a huge contributor to your insurance costs. Loss ratio is calculated by dividing claims costs by your insurance costs. Fewer accidents means fewer claims, which also means a lower loss ratio.
In the Fleet Portal, features such as the risk score, harsh events on a map, and risk categories can help you reduce the chances of accidents and claims, driving down your loss ratio in the process. If you can keep your loss ratio below 30%, you could unlock a 7.5% rebate at renewal.
Tips to maximise your savings with behaviour-based insurance
Equip your vehicles with telematics
Only fleets with 80% telematics coverage are able to benefit from behaviour-based insurance. Through the Fleet Portal, you’re able to order new devices, and monitor the condition of each device after it’s been installed.
The more vehicles you have covered by ABAX, the more accurate your risk score will be. And that means more savings when you renew.
Reduce harsh driving events
Using the harsh events feature in the portal, you can get a clear view of how your drivers behave on the road. Identifying harmful driving behaviours can help you predict and prevent accidents, thereby lowering the chances of a claim.
Use the harsh events map to identify risky areas where harsh events happen the most. Fewer harsh events means a higher risk score, helping you save more when you renew.
Report claims early
Aim to report claims within 24 hours. Claims reported on time are more precise, and aren’t subject to inflation prices or aggravated damages.
We provide information in the Fleet Portal to help you submit claims quickly. Report claims early and you’ll unlock savings on your insurance.
Use risk categories, risk scores and the vehicle leaderboard
Use the risk category and vehicle risk score to identify low-performing drivers and guide them towards better driving practices. You can also reward drivers in the Platinum and low-risk categories, encouraging them to keep driving safely.
The more drivers you have in low-risk categories, the better your risk score will be. And that means more savings when you renew.
Reduce speeding events
Speeding can increase the chances of an accident occurring. And when accidents do happen, your loss ratio goes up too.
Using tips and insights in the Fleet Portal, you can help your drivers to drive safely and reduce speeding events. By introducing safe-driving measures, you can reduce the number of accidents, drive down your loss ratio, and help to save more on your insurance.
Start saving with behaviour-based insurance
Insurance doesn’t have to be confusing and unpredictable. It should be transparent and easy to understand, with tools and data available to help optimise your costs.
Our behaviour-based insurance can help you save more money, and give you full control over your fleet’s performance.
Want to learn more? Visit our Fleet Hub and check out our how-to guides.