What prompts fleet managers to obtain vehicle insurance?

Insurance is one of the most important costs for fleet managers to address, and it's essential that they're familiar with the various requirements necessary to keeping their drivers covered on the road. 

There are more than 18 million vehicles on Australia's roads.

The Australian Bureau of Statistics found there are more than 18 million vehicles on the road, including passenger cars and different types of commercial automobiles. With such a diverse selection occupying the country's roads, there are a number of factors that can affect a policy, with both premiums or excesses subject to change. 

These factors are especially important when it comes to updating your fleet. Could your old vehicles be costing your company more?

What makes a vehicle cheaper to insure?

As the age of  a vehicle increases, its fleet maintenance costs often follow a similar path. If it's coming time to update your fleet, it's important to cover all eventualities to ensure there are no hidden costs.

One of the most obvious factors that influences the overall cost of insurance is a vehicle's value. Unsurprisingly, the more expensive a car or truck is, the more costly it is to cover. These trends provide further weight to the argument that the true cost of a vehicle is determined over its total life span. 

On top of this, it's also advisable to take into account the demographics of your drivers and any claims you've made in the past when planning your next purchase. 

What should you consider when buying a new car?What should you consider when buying a new car?

Will this change in the future?

There has been much debate on how the nature of vehicle insurance could change as various automotive developments begin to take shape. One of the main talking points is how autonomous cars, once they reach our shores, will impact fleet insurance. After all, if a car's computer systems cause an accident, can the driver really be blamed?

Fleet managers won't have to worry about this concern for much longer, with industry experts mostly agreeing that individuals would not be held liable in this situation. Instead, the responsibility would be on the manufacturer. 

According to an October 7 Jalopnik article, Volvo, Mercedes-Benz and Google will all accept the responsibility for any incidents caused by the autonomous functions of their vehicles. Research firm Frost & Sullivan further investigated what this means for drivers and fleet managers. 

Senior Research Analyst Kamalesh Mohanarangam believed this will have a notable effect on the way insurance is paid for, and involve other parties beyond just the manufacturer and the insurer. 

"All excesses currently covered by the insured will be shared among several stakeholders, such as road-operators and local transport authorities," he explained. 

Once again, the rapid pace of automotive development is disrupting the way fleet managers look after their drivers and vehicles.