Shopping around for commercial insurances can be a time
consuming, stressful process
It doesn't take long for those initial good intentions to review
your levels of cover and save a few pounds to turn into frustration
as every company under the sun contacts you, all making the same
promises, all demanding huge amounts of information. Pushy
salespeople try every trick in the book to get you to move/renew
your cover, often deliberately holding on to important
documentation or delaying releasing your quotes until the last
minute - tentially leaving you high and dry on the day your current
policy expires.
It is possible to make this process run smoothly however.
Following these steps will give you complete control of the
process, setting clear deadlines and instructions for the competing
companies to follow, and ensuring that you are comparing like for
like when making your decision.
1. Pick a shortlist of up to three companies (including your
current broker)
There is little point in asking a large number of companies to
quote for your business. There are a limited number of insurance
markets available for truck insurance in the UK so a carefully
selected panel of brokers will provide just as much coverage as a
larger number of prospective brokers. Although it is true that
competition will help keep rates keen, you are far more likely to
get the best out of a potential broker when quoting if you make it
clear to them that they are one of a shortlist of three, rather
than one of half a dozen.
2. Ignore price focussed advertising
When it comes to selecting those companies which will make up
your shortlist, try to ignore those whose advertising focuses
purely on price. It is impossible for a broker to guarantee the
cheapest rate on the market, so any broker who makes this claim is
simply banking on the fact that you can't check if they were, in
fact, the cheapest. Like most things in life you get what you pay
for - the cheapest option is unlikely to be the best. The shopping
around process is about finding a company who can provide you with
the tailored solution that best meets the needs of your business
for the fairest possible price. Select a shortlist of companies who
specialise in your industry and can demonstrate a successful track
record.
3. Give yourself enough time
Ensure you have selected your shortlist by at least one month
prior to your renewal date. Inform each company (including your
existing broker) that a) they are one of a shortlist of three and
b) that you will make your ultimate choice of provider one week
prior to your renewal date. Make it clear that quotes not received
prior to this date will not be considered.
4. Request a copy of your claims experience or No Claims
Discount from your broker
If you run a fleet of more than 4 vehicles you will be painfully
aware of the significance of your claims experience in the shopping
around process. Without it, competing brokers will not be able to
get a genuine quotation from any insurance market. Any broker who
provides terms to a fleet customer without having received a copy
of the claims experience is likely to be quoting 'indication only
rates' - i.e. not a genuine offer at all.
Ask your broker to provide you with the up to date claims
xperience. Most insurers will provide this a month prior to
renewal, and all reputable companies will make sure they have
issued this at least two weeks prior. Tell your current broker they
will lose your business if they are unable to provide the claims
xperience by an agreed date - this will make it clear to them you
are not prepared to be 'held to ransom' by their releasing terms at
the last possible moment.
5. Consider what your needs are
It goes without saying that every operator wants to reduce their
insurance spend. It is essential to consider what factors other
than price are important to you. Think about the current processes
for claims reporting and monitoring - do you get enough information
on the status of your claims from your current insurers? If not,
the process of going to market gives you the opportunity to ask
about the facilities offered by the competing companies. Each
broker, and each insurer, will have their own systems and processes
for the reporting of and accessing of claims information - don't
accept a quotation which doesn't deliver the level of service you
need.
6. Discuss Risk Management with your shortlisted brokers
Each broker on your shortlist will present the information you
have provided about your business to the insurance market.
Generally speaking, insurance underwriters will put a keener price
on an improving risk than one which is proven to cost the same each
year. Talk the shortlisted brokers through any new training
initiatives, security devices or driver management systems you have
invested in. Some insurers are willing to fund the installation of
technology proven to reduce claims - if you express an interest in
these kind of programmes you are likely to be viewed positively by
the insurer.
7. Choose your provider based on service
The winning company should be the one who understands your
business and it's needs best. If the best product/service is being
offered by company who is slightly out on the price, talk to them
before ruling them out on a cost basis. If they understand that you
are looking for a long term business relationship they may be able
to re-approach the insurer in question to shave a little off the
rate. This is always worth trying before you settle for the second
choice.
8. Repeat every three years
Unless you have a specific issue, you shouldn't change provider
on an annual basis. Insurance underwriting is all about stability
and long term relationships with customers. Insurers will therefore
put more attractive terms forward for a company who has a three
year review process, rather than one who switches provider every
year.
