Beat Fraud And Get The Best Courier Fleet Insurance Deal
The ‘Cash-for-Crash’ headlines seem to have died down a bit over the past 12 months, but that doesn’t mean the problem has gone away completely. There are still plenty of criminal gangs out there who are using this dangerous method to commit fraud, and they’re targeting couriers and delivery drivers in particular, as they know the vehicles are covered by courier insurance, and the company will be more likely to pay out in the event of a claim.
However, there’s a piece of tech that’s come to the forefront in the past year that’s making life very difficult for the fraudsters, and that’s the dash cam. With photographic evidence captured in real-time, it’s very difficult to pull the classic ‘rear end’ fake crash and then claim on the victim’s insurance. Motor insurance providers spotted very early on the advantages of the dash cam, and now that the technology has come down in price and is more affordable, it’s becoming a vital provider of evidence in many insurance claims, especially those that involve rear-end shunts and claims for whiplash.
How can it help fleet managers?
For over 20 years, Park Insurance has been providing courier companies and fleet managers with comprehensive and wide-ranging insurance packages. We’ve seen the market change and adapt to new challenges, including the ‘cash-for-crash’ problem, and we’ve also seen how insurance providers have responded to those challenges. We’re noticing that more and more providers stipulate the use of dash cams as part of courier insurance provision, and now the market has responded in turn. Generally, that response has been positive, and fleets across the country are adopting the use of dash cams quite willingly.
The bottom line is that dash cams are a worthwhile investment that can save both fleet managers and insurance companies money by providing irrefutable evidence in the event of an accident.
Wiping out the fraudsters
One company in the Midlands reported that criminal cash-for-crash gangs were targeting its branded vehicles because they knew the vehicles were insured and were seen as an ‘easy target’. They were dealing with up to 40 bogus claims a year, costing time and money as well as causing considerable distress to the drivers. However, as soon as dash cams were installed in their fleet of vehicles the gangs immediately stopped targeting them, as they realised the dash cams would provide undeniable evidence of their fraudulent claims to both the insurance companies and the Police. The savings for the company ran into hundreds of thousands of pounds every year, while the cost of installing dash cams was a business expense they could easily afford.
Courier Insurance – cutting the cost with a dash cam
Not only do dash cams reduce the chances of fraudulent cash-for-crash claims sending your insurance premiums through the roof, but they can actually help reduce them in the first place. Some insurance providers will now offer fleet managers and courier firms a discount on their courier fleet insurance costs if they install dash cams in vehicles. The cost of the dash cams can potentially be offset against tax, while the savings on a fleet policy (especially if you have a large fleet on the road) can be considerable.
Cutting down on driver error accidents
Courier and delivery companies that have fitted dash cams have also discovered another unexpected benefit – they tend to cut down on the number of driver error accidents too, as well as cash-for-crash claims. Because drivers know they are being monitored they tend to drive more responsibly, with fewer incidences of speeding or dangerous driving.
This may sound a little bit ‘big brother’, but in reality, many drivers welcome their electronic passenger and are happy to have an extra pair of eyes in the cab. Tracking devices in courier vehicles have been used for several years now, and have been proven to reduce the number of speeding incidences, dangerous driving and other driver-related errors. Dash cams take this to the next level, ensuring that couriers focus on driving in a safe manner that doesn’t put them, their vehicle or other road users at risk. The result is a dramatic reduction in the number of courier insurance claims over the past few years, to the extent that the poor reputation that many van couriers had as part of the ‘white van man’ menace is now disappearing in the rear view mirror.
Cheaper courier insurance
Courier insurance, especially for a large fleet of vehicles, is never cheap. But by installing dash cams into vehicles, you can bring those costs down considerably. If you want comprehensive courier insurance for your fleet and are thinking about fitting dash cams to your vehicles, talk to Park Insurance. Our advisers will be able to find you fleet insurance that takes into account the installation of electronic tracking and dash cams and offers reduced premiums as a result. While the initial outlay of installing dash cams into your fleet vehicles may be high, the savings over time can far outweigh the costs.
It also demonstrates to customers that you’re taking your responsibilities seriously and that you’re providing additional protection for your drivers. And of course, you’re making life even more difficult for the cash-for-crash scammers and fraudsters, which in turn benefits everyone by cutting the number of fraudulent insurance claims in the UK. This, in turn, means cheaper insurance cover for everyone, and safer roads.
Find out more about courier insurance from Park here.