Haulage companies know that they cannot escape paying for insurance coverage. However there are some tips to pay less.
Bonuses for Being a ‘Good’ Hauler
Haulage companies who have had insurance coverage in the past and who have made no claims (a rare feat, but it happens if there are no accidents or any incident that required the insurer to pay out) may get what the industry calls a ‘no claims bonus’. Look at it from the vantage point of the insurance company—they absolutely love someone who is totally risk-free! Of course, nothing can be entirely risk-free, but if the papers and statistics say your company’s track record is free from events or mishaps that necessitated the intervention of an insurer, then they will be more than happy to offer you a premium rate. The longer the period of your past insurance coverage with a proven ‘no claims’ record, the bigger should be your discount.
Protection according to Limited Usage
Most UK-based haulage companies operate with the open possibility of occasionally doing business outside the country. Although there may be some instances of international business, in reality most haulers (especially amid the current economic doldrums) usually just operate within national borders. If this is the case with your business and you fail to mention it when you purchase insurance, you may be paying a bigger premium for coverage that you do not actually need. In plain language, if you’re operating within the UK, you get certain discounts based on limited usage. If, in the past year, you have hauled cargo only within the UK, with perhaps the exception of one or two transactions, then it makes good business sense to demand insurance premium discounts—it often is not worth paying more for a rare possibility of making that delivery to France (for which you could buy separate coverage if and when it arises).
Discount for Restricted Driving
Haulage companies, especially those employing only a handful of drivers, can gain big discounts if they limit the number of drivers covered per policy. This means if you indicate in the policy that only you, the owner, or other named individuals are the ones doing the driving, then the premium goes down significantly.
A general caveat for insurance coverage, however, is that while it makes good sense to pursue a reduction in the amount of money you pay for coverage, you should understand there is a fragile balance between price and actual cover—the cheaper a policy is, the less cover it offers. Keep that in mind and make sure you do not end up sacrificing your company’s welfare just to save a few quid.