Motor insurance tips for small charities

Challenges include meeting growing demand for their services whilst balancing the books and trying to generate more income.

As well as looking at revenue generation and new methods of fundraising, such as increased use of social media, charities also need to operate as financially lean as possible.  Expenses and overheads need to be scrutinised to ensure there is no unnecessary overspend.  Insurance is a crucial part of the effective running of a charity and there are many things that can be done to reduce the cost of premium without compromising the level of cover.  In this blog, I look at what charities can do to control their motor insurance costs..

How can you save money on your minibus insurance?

For many charities and community groups, a minibus provides vital transport.

With charities under financial pressures there’s a need to obtain value for money, but  to also ensure you have adequate insurance cover from a legal perspective and a duty of care towards your passengers.

So, how can you save money at your next insurance renewal? When calculating your annual insurance premium, insurers take a number of risk factors into account to determine how likely it is that you will need to make a claim. Some things to consider include:

• Restricting the number of drivers allowed to drive your minibus; this could lead to substantial savings, for example by excluding any drivers aged under 25 or under 30 if you are not likely to need this.
• Offering to carry a voluntary excess on your policy; this could bring down the cost of the premium as you would be contributing towards the cost of any claim, for example by offering to pay the first £250 or £500 of any claim.

Demonstrating that you are implementing risk management initiatives may also lead to the insurer looking favourably and offering a discount as a way of acknowledging your commitment to reducing potential accidents and claims. These can include:

• Vehicle storage. Consider where you keep the vehicle at night or when not in use. Is it safe and secure?
• Frequent check. Do you carry out daily vehicle checks, looking for any defects that could potentially lead to an incident?
• Safety awareness. Do the drivers and staff know where safety equipment is located, and how to use it?
• Security set up. Has the vehicle got additional security in terms of alarms and trackers?
• Incident training. Does everyone know what procedures to follow in the event of an incident?
• Early reporting. Reporting accidents early and being able to demonstrate actual video evidence in the form of telematics may also benefit your insurance premium and ultimately save you money

Have the right kind of breakdown cover

When considering minibus insurance, it is also advisable to take out adequate breakdown cover, but bear in mind that the cheapest isn’t always the best.

Imagine your minibus breaking down in the middle of the countryside at night, full of vulnerable, young children or elderly passengers and then realising that you either don’t have breakdown cover, or that the breakdown cover you have doesn’t include onward transportation of all the passengers.

Such cover may be available as a relatively low-cost addition to your minibus insurance policy, so check with your broker.

QBE for minibus insurance

Few insurers know the minibus market like QBE. Over the past 20 years, we have insured hundreds of thousands of minibuses and are regarded as UK leaders in minibus insurance.

We can insure all types of minibus, including specially-adapted vehicles. We also provide breakdown cover which includes European cover, homestart, roadside assistance, relay and onward transportation of all passengers.

Our 2017 Minibus Operator Handbook contains useful information on managing risk. Download it for free here.