When your business adds new vehicles to its fleet, it can affect your fleet insurance more than you might think.
Of course, buying new vehicles affects the kind of insurance you’ll need – if it’s because your old cars were damaged beyond repair and you need replacements, then that can affect your taxi fleet insurance in other ways.
New vehicles are generally more expensive to insure because they are more expensive to repair than older models. Your fleet insurance will increase as your fleet grows, especially if it becomes more technologically advanced. Here are five ways how new vehicles affect your fleet insurance.
A New Vehicle Costs More To Repair
Yes, the newer the vehicle, the more expensive it is to repair—and that cost usually gets passed on to you, in one way or another. But newer vehicles also offer safety features and upgrades that can cut down on the risk of accidents.
For example, many new cars come equipped with pedestrian-detection systems or anti-lock brakes that help prevent serious injuries. To ensure your fleet insurance remains cost-effective, keep your vehicle up to date with any updates and maintenance needed after warranty periods expire.
It’s also good to compare various insurance companies before renewing with your current carrier to see if rates have changed since last year; doing so can save you and your business over time.
A New Vehicle Requires Greater Safety Features
You are probably aware that new cars include several important safety features. These include electronic stability control, anti-lock brakes, and daytime running lights. There is no doubt that your car insurance premiums may increase if you have a newer vehicle with such advanced technology.
But remember that these new technologies have been developed for a reason and can be your best protection against accidents. If you drive a new vehicle equipped with such safety features, it’s essential to know how they work and what they mean to your car insurance coverage.
For example, electronic stability control helps keep drivers in their lane by detecting when they begin to drift across lanes and applying braking pressure accordingly. This system has been proven to reduce accident rates by 40 percent.
If you do not have a vehicle equipped with electronic stability control or other similar systems, your premium will likely go up because insurers like Humn.ai believe those who don’t use modern safety equipment pose more risk than those who do. However, you can mitigate this by using products like RideShur.
A New Vehicle Requires Updated Driver Training
A bigger problem is that, in many cases, drivers don’t know how to operate newer vehicles. Driver training is required when you add a new driver to your fleet or when a driver needs to learn how to handle a new vehicle type.
That can mean more time and money spent on training in either case. For example, not all semi-trucks are equipped with side-view mirrors or rearview cameras, and those who do have them are still required by law to use them correctly and thus receive more training than usual.
Add in technology such as automated braking systems, blind-spot monitoring, and cruise control systems—all of which can require additional training—and you may need significant time from your employees just teaching them how to drive their vehicles safely and legally.
Recalls Of New Vehicles Lower The Cost Of Insurance
It may seem counterintuitive, but insurance prices often drop once a recall has been issued for a vehicle. This is because fewer people will be driving that model or year of the car since it has already been deemed unsafe to drive.
Recalls may cause headaches for carmakers, but they do drive down your insurance costs. When cars are recalled, it’s usually because something is wrong with them, which could lead to a claim if left unaddressed.
If you’re driving a recalled vehicle, then that part of your car is repaired at no cost to you, and therefore there’s less chance of an accident in which something might get damaged and cost more money to fix. With recalls, more good things happen than bad ones (if you’re insured).
