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Having looked at electric fleets it seemed only logical to look at the other big thing in fleets at the moment, self-driving fleets. Self-driving or autonomous cars have gone from pipedream to reality in an astonishingly short space of time. The first attempts at driverless cars came in the 1920s with radio controlled versions, but it has only really been since the early 2000s with the US military’s investment in driverless car research and later in 2009 with Google’s unveiling of their first autonomous cars that progress has accelerated.
Owning and running a heavy goods vehicle (HGV) or truck is an expensive business these days. Many of these costs – such as road tax and fuel – are ones that truck owners can do little about, but truck insurance is something they can affect savings on. In this blog we’ll give you the insider’s guide to saving money on your HGV and truck insurance so you can keep your truck or HGV on the road for less.
While it would be fair to say that there’s a good deal of misunderstanding when it comes to car fleet insurance – many are surprised that fleet cover can be taken out on just 2 vehicles – it's as nothing when compared to lorry fleet insurance or truck fleet insurance.
As a small or medium sized business owner whether they have considered taking out truck or lorry fleet insurance and they invariably reply that it’s not for them as they don’t have a huge number of lorries and other heavy goods vehicles (HGVs) in need of cover. But as with car fleet insurance, truck and lorry fleet insurance can be for them as it’s a far more flexible type of cover than you might think…
In the competitive world that is running a fleet of trucks or a haulage business, the ability to save money can be the difference between surviving and thriving. One way that lorry operators are increasingly looking to is telematics for trucks. Telematics – the method of capturing and interpreting a truck’s data electronically – can help you save on a range of business-critical areas, including truck insurance, fuel and even time.
What is the Ogden Rate?
The Ogden Rate, also called the ‘discount rate’ is used to calculate the level of compensation a person who suffers personal injury receives over their lifetime. It works on the principle that the compensation awarded will gain interest over time and this more significant with larger claims from more serious injuries.
Why has it changed?
The change in the discount rate is a consequence of the low interest levels in recent years resulting in a review by the Lord Chancellor. The review concluded an adjustment of rate should apply and came in to effect on 20th March 2017, reducing it from 2.5% to -0.75%.
How does this affect insurance premiums?
An example from Allianz Insurance uses a 30 year old man earning £25,000 a year suffering serious injuries and requiring care for the rest of his life. Before the reduction in the Ogden rate, the amount due from the insurer would have been calculated at £2,791,000 and after 20th March 2017, £6,325,000. This extra cost to the insurers can only be recovered by increasing premiums.
What premiums will be affected?
Premiums will increase on all policies which are affected by personal injury claims meaning an impact on millions of motor policy holders whether it’s a car, van or fleet insurance as well as other policies covering liability insurance, particularly business insurance. PricewaterhouseCoopers estimated recently that comprehensive motor insurance policies could increase by up to £75 on average but up to £1000 for young drivers.