The headlines of Britain’s news media make troubling reading: “EU could change Eurozone countries’ budgets”, “Ocado says trade disrupted by jubilee celebrations”, “Administrator to cut services after takeover of ailing NHS trust”.
Wherever you look, it seems organisations may be trying to cut back and reduce costs.
In this harsh economic climate, most companies will probably try to make certain savings, but van insurance is an essential expense for any distribution company – and yet, it can also be very expensive.Research by Autonet Insurance showed, in January 2011, male drivers under the age of 22 had to pay an average of £2,550 for their van cover.With this expensive price tag companies may look for ways to reduce the cost of their premiums, and some may find that they are more likely to obtain cheap van insurance with the help of telematics.
Some companies refer to telematics technology as a “spy” because it monitors various aspects of a driver’s motoring behaviour. For example, if a staff member drives recklessly, by breaking speed limits for example, his or her employer will know about it.So, staff members may drive more safely if managers install black boxes (telematics devices) in their vehicles and let employees know that they are monitoring their driving habits.In 2012, Co-operative Insurance provided encouraging data to back up the efficacy of telematics technology by analysing the driving habits of 10,000 telematics policy-holders.After finishing their research, the company determined those aged between 17 and 25 were approximately 20% less likely to suffer a vehicle collision than drivers with a normal insurance policy. Furthermore, after a traffic accident, insurance claims for telematics customers cost around 30% less than those with standard cover.
As well as potentially reducing the severity of a traffic accident, telematics may have a variety of other benefits. For example, TRACKER, a telematics company, published a survey in 2012 showing 22% of companies had been able to use telematics to improve their fuel consumption. In addition, 38% reported improvements in customer satisfaction after installing black boxes in their vehicles.
Finally, a company may be adversely affected if vans are stolen. However, a black box monitors the location of a vehicle – meaning it can be tracked in the event of theft. Although this device will not guarantee the safe recovery of a stolen van, it may provide some peace of mind to managers and can help police in apprehending the thieves. This extra security device also helps to bring down insurance costs.
According to a survey carried out by ALD Automotive and YouGov in 2012, more than a third of UK businesses with more than 500 employees are using telematics technology. As a result, these companies may be able to save money on their fuel costs as well as improve driver behaviour and employee productivity.Furthermore, as long as staff members drive safely and build up a history of no-claims, employers may see a reduction in the price of their van insurance at renewal.
This guest post was provided by iVan Insurance, a van-only online insurance provider. To see if your company could claim cheap van insurance, click here to get a quote
