COMMERCIAL MOTOR INSURANCE CASE STUDY
Geotechnical Consultancy Fleet, Remarketed with Hire Vehicle Added at No Cost
A geotechnical engineering firm asked us to test its fleet program against the market. Two fleet insurers declined once they saw the target premium; two quoted, more than $11,000 apart, for the same vehicles.
THE SITUATION
A geotechnical engineering consultancy running a fleet of work vehicles asked Tank Insurance to remarket its commercial motor program. The existing policies included windscreen excess waivers and hire car after an accident.
The claims record was mostly minor windscreen claims.
OUR APPROACH
Fleet motor is rated on the vehicle schedule and the claims history, so the first job was to assemble both from the incumbent insurers before any market was approached.
- A letter of authority was signed so we could collect formal claims history for every vehicle direct from the existing insurers.
- Seven fleet markets were approached. Two quoted formally, two declined once the target premium was disclosed, one offered indicative terms subject to a higher excess and the full claims history, and two did not progress the referral.
- The two formal quotes were more than $11,000 apart, at approximately $35,700 and $24,400, for the same schedule.
- Hire vehicle after accident was added to the lower quote at no extra cost after we asked.
THE CHALLENGES
A fleet insurer may decline a remarket if the incumbent's premium is already below where they can write the risk, which is what two of the seven markets did here. That is useful information: it tells the client the incumbent's price is competitive, not that the fleet is uninsurable.
The claims history was the other gating item. One market asked for at least twelve months of formal history per vehicle before it would consider terms, so collecting it up front kept the remarket moving.
THE OUTCOME
The fleet was placed with Prorisk at a premium of approximately $24,400 a year, with hire vehicle after accident included at no additional cost.
Final Solution: Fleet motor for a geotechnical consultancy at around $24,400 a year, more than $11,000 below the other formal quote for the same vehicles, with the hire car benefit added at no additional premium.
This case records one historical outcome; current insurer appetite, premium, timing and terms depend on the complete risk at the time of application.
For the wider buying context, see our commercial motor insurance brokers page, the fleet insurance guide and the geotechnical engineer insurance page.
FLEET OWNER QUESTIONS
What this placement answers for other businesses running vehicles
Why would a fleet insurer decline to quote my fleet?
What does a fleet insurer need before quoting?
Can hire car and windscreen benefits be negotiated on a fleet policy?
COMMERCIAL MOTOR AND FLEET
Put this placement in context
Case-study results are historical and are not a promise of current pricing, capacity or policy terms. This page is general information only and does not take account of your objectives, financial situation or needs.
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