How Can A Camera System Help Reduce HGV Insurance Costs?
Running and managing large or small commercial fleets is an expensive and detail focused task. Fleet operators are under constant pressure to minimise operational costs whilst ensuring performance targets are met. In-vehicle camera systems can help to reduce HGV insurance premiums.
How Does CCTV Reduce Insurance Costs?
CCTV can not only reduce insurance premiums but also has the following benefits:
- Provides important footage
- Helps to resolve disputes quickly and accurately
- Prevents fraudulent insurance claims
- Encourages drivers to drive more carefully
Reducing the severity and frequency of claims will reduce your insurance costs significantly. Claims history and experience play a large role in determining fleet insurance costs, so if your fleet has a history of claims then the insurance costs are likely to be higher year on year.
Camera systems facilitate a more accurate and streamlined claims experience, thereby reducing costs.
The camera system acts as an independent witness in the event of an incident, providing real and verifiable evidence.
This means that:
- Staged ‘cash for crash’ incidents can be quickly and easily identified thereby eliminating registered faults where the driver is not to blame.
- Costs relating to claims, future increases, renewals, and in some cases criminal charges are reduced as there is evidence to document exactly what happened
- Split liability and disputed claims can be resolved correctly and quickly
- Driver performance and awareness is enhanced
- Fleet managers are able to monitor driver habits
- Effective and consistent monitoring of driver habits enables fleet managers to organise the fleet better
- Fleet managers can enforce better driving practices to ensure that tyre wear and drivability is improved
- You can defend any claims more easily and with less stress and quicker settlement
According to research undertaken recently, the installation of a camera system can lead to 61% fewer claims, with an average saving of 60% when it comes to fault claims. Typically, a camera system installed in a HGV will pay for itself many times over in the first year of installation.
Installing Camera Systems
When it comes to installing a camera system in the HGV, there are some key considerations you need to be aware of:
- Make sure any camera system you use is installed correctly in accordance with the manufacturer’s guidance and insurer’s approval
- Any film footage of an incident should be sent to the insurer as soon as reasonably possible
Telematics, Data, and Monitoring
Another important point to note relates to telematics. If you really want to utilise the cost benefits related to camera systems in the HGV, then you need to ensure that any telematic capabilities are properly tracked and used. Telematics are a great tool for fleet managers who want to achieve consistencies and cost savings as they provide important data relating to driver behaviour.
Using telematics to be proactive and manage driver behaviour will reduce costs and lead to performance-based efficiencies.
Monitoring driver behaviour is important for fleet operators and drivers. For drivers, it minimises driver distraction and inappropriate behaviour whilst driving such as using mobile phones. It also adds a layer of protection for drivers who may be blame free in the event of an incident. For fleet managers, the additional footage and telematics can help identify and eliminate poor driver behaviours and patterns.
Of course, before any driver monitoring takes place you need to ensure that you have carefully considered the scope and impact of the monitoring.
Does Having A Camera System Reduce Insurance Costs?
Yes, having a good camera system will reduce insurance costs drastically. Any HGV with a camera system installed will instantly be perceived well by insurance companies who will lower the fleet risk level.
For insurers, they believe that camera systems are a favourable addition to the vehicle and help mitigate and minimise risks. Many insurers also offer discounts to the up-front cost of insurance so you will see the cost savings immediately.
There are wider issues that can also reduce insurance costs for HGV fleets. Using camera systems is one of many interventions that can be put in place to reduce insurance costs. Other factors that will also help reduce costs include:
- Ensuring there is a culture of safety from top to bottom within the organisation
- Implementing and constantly reviewing safe systems of working
- Making sure vehicle maintenance and checks are a priority
- Investing in HGV technology (including cameras) as part of an integrated system of electronic control and accountability
- Undertaking comprehensive and regular risk assessments
- Ensuring drivers are educated about safety and have a safe space to discuss concerns and issues
Camera systems are not only about cost savings, although this is their main draw for fleet operators. They also help when it comes to proving liability, thereby making the whole claims resolution process more streamlined and evidence-based for all parties. Camera systems also help as visual and parking aids for drivers, eradicating any possible blind spots. The end result is that HGVs with vehicle camera systems installed are safer and more compliant, as well as being more efficient.
Are Camera Systems a Win-Win Investment?
Camera systems are seen as a proactive risk mitigation measure by fleet operators and insurance companies. They are an affordable safety upgrade for vehicles and drivers.
With the ongoing commercial pressures faced by the industry, profit margins are being squeezed by rising fuel costs, experienced driver shortages, rising premiums and enhanced environmental responsibilities. Technological upgrades such as in vehicle cameras can help alleviate a lot of the financial pressures. Better surveillance leads to be better driving, better driving leads to enhanced safety, this leads to less risk of accidents and lower claims and lower insurance premiums. Companies that invest in camera systems will see reductions in their premiums and increases in safety and efficiency.
As the industry moves towards safer, leaner and more environmentally practises, camera systems should always be considered by fleet managers if they want to maintain road-user and driver safety on public roads and work sites.
Heavy goods vehicles need comprehensive insurance to ensure the vehicle is protected alongside the driver and the goods carried by the vehicle. Depending on the business you work for, you may need a non-standard and bespoke insurance policy.
ISIS Insurance offers a wide variety of insurance options and quotes that cover everything a HGV might need when it comes to insurance, from skip lorries to refrigerated vehicles.