How a Delivery Fleet Saved 20% by Switching to WeCovr
As an FCA-authorised expert broker in the UK, WeCovr helps thousands of businesses navigate the complexities of motor insurance. This case study reveals how we helped a growing delivery firm cut its fleet insurance premium by 20%, highlighting actionable strategies that any small to medium-sized enterprise (SME) can adopt.
WeCovr's case study on helping SMEs lower their commercial motor premiums
For any UK business that relies on vehicles, managing motor insurance costs is a constant battle. Premiums are rising, driven by inflation, the increasing complexity of vehicle repairs, and accident rates. For SMEs, these escalating costs can squeeze already tight margins, making the search for the best car insurance provider more critical than ever.
This is the story of "Swift Deliveries," a fictional but representative UK courier company. It details how a strategic partnership with WeCovr transformed their insurance outlook, delivering significant savings and powerful operational benefits that strengthened their business.
The Challenge: Spiralling Fleet Insurance Costs for "Swift Deliveries"
Swift Deliveries, a thriving SME based in the Midlands, operates a mixed fleet of 15 vehicles: ten light commercial vans and five saloon cars used by its account managers. Like many successful businesses, their growth brought new challenges, with their commercial motor policy becoming a major source of financial pressure.
Their primary challenges were:
- Soaring Premiums: Their renewal quote had jumped by over 25% year-on-year, despite only one minor fault claim in the previous period. This hike was unsustainable. According to the Association of British Insurers (ABI), the average price paid for motor insurance saw a significant rise in 2024, a trend that continues to impact commercial fleets heavily.
- A One-Size-Fits-All Policy: Their existing "any driver over 25" policy was simple but incredibly expensive. It failed to account for the varied experience levels of their drivers or the different risk profiles of their cars versus their high-mileage delivery vans.
- Excessive Administrative Burden: Managing the fleet policy—from adding new vehicles and drivers to handling declarations and claims paperwork—was a time-consuming distraction for the small management team.
- Lack of Risk Management Insight: Their previous broker relationship was purely transactional, limited to providing an annual quote. There was no proactive advice on how to reduce their risk profile and, consequently, their long-term insurance costs.
The management at Swift Deliveries knew something had to change. The rising cost of their fleet insurance was becoming a direct threat to their competitiveness and profitability.
Understanding UK Commercial Motor Insurance Essentials
Before exploring the solution, it's crucial to grasp the legal and practical foundations of motor insurance in the UK. For any vehicle being used on a road or in a public place, insurance is a non-negotiable legal requirement.
The Road Traffic Act 1988 mandates that all vehicle users must have, at a minimum, third-party insurance cover. This applies equally to private cars, motorcycles, individual business vans, and entire commercial fleets.
Levels of Motor Insurance Cover
Understanding the different tiers of cover is the first step to choosing the right policy for your business assets.
| Cover Level | What it Includes | Ideal For |
|---|---|---|
| Third-Party Only (TPO) | Covers injury or damage you cause to other people (third parties) and their property. It does not cover any damage to your own vehicle or driver injuries. | This is the absolute legal minimum. It is rarely recommended for businesses as the cost saving is often minimal compared to the huge financial risk of leaving your own vehicles unprotected. |
| Third-Party, Fire & Theft (TPFT) | Includes everything in TPO, plus it provides cover for your own vehicle if it is stolen or damaged by fire. It does not cover your vehicle for accidental damage. | A budget-conscious option for lower-value vehicles where the cost of accident repairs would be economically viable for the business to cover itself. |
| Comprehensive | Includes everything in TPFT, and it also covers damage to your own vehicle, even if an accident was your fault. It is the highest level of protection and often includes extras like windscreen cover as standard. | The recommended level of cover for most businesses to protect valuable vehicle assets, ensure operational continuity, and meet potential contractual obligations. |
Business vs. Fleet Insurance
While both fall under the umbrella of commercial motor insurance, there is a key distinction that SMEs should understand:
- Business Car Insurance: This type of policy is typically used to cover a single vehicle or a very small number of vehicles (usually one or two) used for business purposes. This could include a director's car used for visiting clients or an estate car for a tradesperson.
- Fleet Insurance: This is specifically designed for businesses managing multiple vehicles (the threshold is usually two or three, but can be hundreds) under a single, unified policy. It vastly simplifies administration with one renewal date and one set of documents. Crucially, it offers potential cost savings through a bulk policy and can be highly customised to cover a mix of vehicle types (cars, vans, HGVs, special types) and diverse driver profiles.
Swift Deliveries required a comprehensive fleet insurance policy, but their existing one was a blunt instrument, not the tailored tool they needed.
The WeCovr Solution: A Tailored Approach to Fleet Insurance
When Swift Deliveries approached WeCovr, they weren't just looking for a cheaper quote. They needed an expert partner to help them understand and control their costs. As an FCA-authorised broker with a history of arranging over 800,000 policies across various insurance types, WeCovr provides impartial advice and access to a wide panel of specialist fleet insurers, all at no cost to the client.
Our process was methodical, transparent, and focused on partnership.
1. The Initial Consultation and Deep-Dive Analysis
We started with a thorough review of Swift Deliveries' entire operation. This went far beyond the vehicle list; it was about understanding their business from the ground up to identify every opportunity for risk reduction.
We analysed:
- Claims History: We meticulously examined their past five years of claims data. This revealed one at-fault collision that resulted in a significant payout, and two minor windscreen replacement claims. We identified the specific driver and circumstances of the fault claim.
- Driver Profiles: We gathered details for all 18 drivers, including their age, driving history, licence details (checked with the DVLA's consent), and any penalty points or convictions. We discovered a clear split: a core group of highly experienced drivers over 40, and three newer, younger drivers under the age of 25.
- Vehicle Usage & Security: We mapped out average and maximum annual mileage for the vans versus the cars, their typical routes (a mix of urban and motorway), hours of operation, and overnight parking arrangements. We noted that all vans were parked in a locked compound, but the cars were kept at employees' homes. While the vans had factory-fitted immobilisers, none had Thatcham-approved alarms or GPS tracking devices.
- Existing Policy Shortfalls: Their expensive "any driver over 25" policy was the biggest red flag. Insurers priced the risk based on an unknown driver profile, which is always assumed to be the highest risk. It completely ignored their roster of experienced drivers and forced a high premium across the entire fleet.
2. WeCovr's Strategic Recommendations
Armed with this detailed data, we presented Swift Deliveries with a clear, actionable plan. Our strategy was to reduce their risk profile before we approached the insurance market. This proactive step is what separates a broker from a simple comparison site and is crucial for securing the best possible terms.
Our key recommendations included:
- Install Telematics Devices: We strongly advised installing telematics ("black box") systems in all ten high-mileage delivery vans. This technology monitors driving style (speeding, harsh braking, acceleration, cornering) and provides invaluable data for managing risk, improving fuel efficiency, and proving facts in the event of a disputed claim. The ABI has long highlighted that telematics is a proven tool for promoting safer driving and achieving lower premiums.
- Implement a Formal Driver Training Programme: We recommended a mandatory annual online risk awareness course for all staff, supplemented with practical defensive driving coaching for the younger drivers and anyone flagged by the new telematics system for poor driving habits.
- Enhance Vehicle Security: For a modest one-off cost, we suggested fitting Thatcham Category S7 GPS trackers to all ten vans. This not only acts as a theft deterrent but also drastically increases the chance of recovery, a factor insurers reward with lower premiums.
- Restructure the Policy from the Ground Up: We proposed completely abandoning the costly "any driver" policy. Instead, we recommended a more precise structure:
- Cars: A "named driver" policy for the five cars, listing only the specific managers who drove them.
- Vans: A restricted "any driver over 25 with 2+ years of commercial driving experience" clause, with the three younger drivers explicitly named on the policy (with a higher excess applied only to them).
- Increase the Voluntary Excess: We explained the relationship between voluntary excess and the premium. By agreeing to increase their contribution in the event of a fault claim from £250 to £500, they could achieve a noticeable reduction in their base premium. This was a calculated risk they were comfortable with, given the other risk management measures being introduced.
Swift Deliveries embraced the recommendations, viewing them not as expenses, but as smart investments in the long-term safety, efficiency, and financial health of their business.
The Results: A 20% Premium Reduction and Beyond
After Swift Deliveries implemented these changes over a two-week period, WeCovr leveraged its market knowledge and insurer relationships. We presented their newly strengthened risk profile to our panel of specialist fleet insurers. With a compelling story of proactive risk management, the quotes we secured were dramatically better than their renewal offer.
Before and After: Swift Deliveries' Fleet Insurance
| Feature | Previous Insurer (Renewal Quote) | WeCovr's Tailored Policy |
|---|---|---|
| Annual Premium | £18,750 | £15,000 (20% Saving) |
| Policy Type | Comprehensive | Comprehensive |
| Driver Clause | Any Driver over 25 | Named Drivers (Cars); Restricted Any Driver (Vans) |
| Voluntary Excess | £250 | £500 |
| Telematics | Not required / Not considered | Required on all vans (Discount applied) |
| Security | Standard factory immobilisers | Thatcham S7 Trackers (Discount applied) |
| Legal Expenses | Not included | Included (£100,000 Uninsured Loss Recovery) |
| Breakdown Assist | Not included | Included (Fleet-wide Roadside Assistance) |
| Admin Support | Standard call centre | Dedicated WeCovr Account Manager |
The results delivered value far beyond the headline number:
- £3,750 Annual Saving: The 20% reduction translated into a direct, tangible saving that went straight to their bottom line, freeing up capital for other business investments.
- Significantly Enhanced Cover: For less money, Swift Deliveries gained crucial optional extras like Legal Expenses Cover (to recover uninsured losses like their policy excess from a non-fault party) and fleet-wide Breakdown Assistance. This eliminated other separate costs from their budget and reduced their financial exposure.
- Improved Operational Efficiency: The telematics data was a revelation for the management team. They were able to optimise delivery routes, leading to an estimated 8% reduction in fuel consumption within the first quarter. The driver behaviour feedback allowed them to provide targeted coaching, and their rate of minor incidents (such as scrapes and harsh braking events) dropped by 30% in the first six months.
- Reduced Administrative Headache: With a dedicated WeCovr account manager as their single point of contact, adding a new vehicle or driver became a simple phone call or email. This freed up their management team to focus on growing the business, not on insurance paperwork.
WeCovr’s high customer satisfaction ratings are built on results like these, where we act as a true risk management partner, not just a seller of policies. Furthermore, by becoming a WeCovr client, Swift Deliveries unlocked discounts on other business insurance products they needed, such as Public Liability, creating even more value.
Key Factors That Influence Your Fleet Insurance Premium
The experience of Swift Deliveries demonstrates that insurers evaluate a wide range of interconnected factors when calculating a premium for a motor policy. Understanding these can empower any fleet manager or business owner to take control of their costs.
| Factor | Lower Risk (Leads to a Lower Premium) | Higher Risk (Leads to a Higher Premium) |
|---|---|---|
| Drivers | Experienced staff (aged 25-65), clean driving licences (no points), named on the policy, stable workforce. | Young or inexperienced drivers (under 25), drivers with convictions (e.g., SP30, CU80), high staff turnover, "any driver" clauses. |
| Vehicles | Standard models, vehicles in lower insurance groups, high security (Thatcham alarms/trackers), well-maintained. | High-performance or modified vehicles, imported models, poor security, older vehicles with poor maintenance records. |
| Usage | Low annual mileage, garaged/secure compound parking overnight, rural/suburban driving, standard goods. | High annual mileage, extensive city-centre/London driving, on-street parking, carrying hazardous or high-value goods. |
| Claims History | A long, established no-claims bonus (NCB), a low frequency of claims, and no major fault claims. | Multiple fault claims, a high frequency of small claims, a recent large loss, no established claims history. |
| Policy Structure | A higher voluntary excess, comprehensive cover (seen as more responsible), paying the premium annually. | A very low excess, third-party only cover on valuable vehicles, paying by monthly instalments (which often include interest). |
Actionable Strategies for Lowering Your Business Motor Insurance Costs
Every business can take proactive steps to lower its motor insurance UK premiums. Drawing from our experience, here are some of the most effective strategies any SME can implement.
1. Embrace Technology as a Risk Management Tool
- Telematics: As proven with Swift Deliveries, telematics is a game-changer. It provides objective data to prove to insurers that you are proactively managing your biggest risk: driver behaviour. The data can also be used to defend against fraudulent "crash for cash" claims and verify event details.
- Dash Cams: Installing forward-facing (and ideally, driver-facing) dash cams provides indisputable video evidence in the event of an accident. This helps to prove liability quickly and accurately, speeding up the claims process and protecting your fleet's no-claims bonus from fraudulent or disputed claims. Many insurers offer direct premium discounts for fleets that have them fitted across all vehicles.
2. Invest in Your Drivers, Your Biggest Asset
- Rigorous Vetting: Before hiring, always check the driving licences of potential staff using the DVLA's online "View or share your driving licence information" service (with the applicant's permission). This is a free service that instantly verifies their entitlement to drive and reveals any current penalty points or disqualifications.
- A Culture of Ongoing Training: Regular training isn't a cost; it's an investment in safety and professionalism. A combination of online risk awareness modules, practical defensive driving courses, and specialist training (e.g., on cyclist and pedestrian awareness for urban drivers) creates a strong safety culture that insurers recognise and reward.
- Incentivise and Reward Good Driving: Use telematics data to create a positive feedback loop. Implement a "Driver of the Month" award, offer small financial bonuses for claim-free years, or simply share league tables that celebrate the safest drivers. Positive reinforcement is a powerful motivator.
3. Optimise and Protect Your Fleet of Vehicles
- Choose Vehicles Wisely: When adding or replacing vehicles, always consider their insurance group (from 1 to 50). Vehicles in lower groups are cheaper to insure. With the rise of electric vehicles (EVs), consider their total cost of ownership. While 2025 data from the ONS indicates that EV repair costs can be higher, potentially affecting premiums, these can be offset by lower running costs and government incentives.
- Prioritise Vehicle Security: Always opt for factory-fitted, Thatcham-certified security systems. For high-value vans and those left in vulnerable locations, professionally installed GPS trackers (like a Thatcham Category S7 or S5) are a must-have. The one-off installation cost is often recovered through premium savings within the first year.
- Maintain Your Vehicles Meticulously: A well-maintained vehicle is a safer vehicle. Adhere strictly to manufacturer service schedules and keep detailed records. This not only prevents accidents caused by mechanical failure but also demonstrates to insurers that you run a professional and responsible operation.
4. Manage Your Insurance Policy with a Strategic Eye
- Never Just Auto-Renew: Loyalty rarely pays in the insurance market. Your business needs change, new insurers enter the market, and pricing models are constantly updated. Using an independent broker like WeCovr ensures your policy is re-marketed across a wide panel of providers each year, guaranteeing you access to the most competitive and appropriate vehicle cover.
- Pay Annually if Possible: If your business cash flow allows, paying your premium in one annual lump sum avoids the interest charges that are typically applied to monthly instalment plans. This can often save you between 6% and 12% of the total premium.
- Look for Bundled Discounts: Insurers value customers who place multiple policies with them. By using a broker to arrange your Fleet, Public Liability, and Employers' Liability insurance together, you can often unlock significant multi-policy discounts.
Navigating the Claims Process: A Guide for Fleet Managers
Even with the best risk management, accidents can happen. How you and your drivers handle a claim can have a significant impact on the outcome, the cost, and your future premiums.
At the Scene of an Accident: A Driver's Checklist
- Stop: It is a criminal offence to leave the scene of an accident that causes injury or damage.
- Ensure Safety: Turn on hazard lights. Check for injuries to yourself, passengers, and third parties. If anyone is hurt, the road is blocked, or you suspect foul play, call 999 immediately for police and ambulance services.
- Never Admit Liability: Instruct all drivers that they must never apologise or accept blame at the scene. They should only state that their insurance company will handle the matter. Admitting liability can prejudice your insurer's position.
- Gather Comprehensive Evidence:
- Use a smartphone to take multiple photos of the overall scene, the positions of the vehicles, the damage to all vehicles involved, and any relevant road markings or signs.
- Get the full name, address, contact number, and insurance details (company and policy number) of the other party.
- Note the make, model, colour, and registration number of all vehicles.
- If there are any independent witnesses, get their names and contact details. Their testimony can be invaluable.
- Report to the Police: You must report the accident to the police within 24 hours if you were unable to exchange details at the scene, if anyone was injured, or if you suspect the other driver was uninsured or under the influence.
Reporting the Claim to Your Broker/Insurer
Report the incident to your insurance broker, like WeCovr, as soon as is reasonably possible. Our dedicated claims experts will register the claim with the insurer on your behalf, help you complete any necessary paperwork, and work to ensure a swift, fair, and hassle-free settlement. A seamless claims experience is one of the key reasons many businesses choose an expert broker over going direct to an insurer.
A fault claim will almost certainly lead to an increase in your premium at renewal and will reduce your fleet's no-claims bonus. However, a well-managed claims process and strong post-incident analysis and risk improvements can help to mitigate the long-term financial impact.
What is the difference between business car insurance and commercial fleet insurance?
Does a driver's personal no-claims bonus apply to a fleet policy?
Are electric vehicles (EVs) cheaper to insure for a fleet?
Do I need to declare modifications to my fleet vehicles?
Take Control of Your Fleet Insurance Costs Today
The story of Swift Deliveries is a powerful illustration of how a strategic, data-driven partnership with an insurance expert can deliver huge benefits. Rising premiums don't have to be an inevitable cost of doing business. By working with a specialist broker, you can gain the insights, advice, and market access needed to build a more resilient, safer, and cost-effective insurance programme.
At WeCovr, our team of commercial motor specialists is ready to conduct a free, no-obligation review of your current fleet insurance. Let us show you how a tailored motor policy can better protect your business and boost your bottom line.
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