SECURING A DISCOUNT
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• Theft victims have always longed for a crystal ball to reveal the whereabouts of their property and get the villains brought to justice. That dream is becoming reality for vehicle owners thanks to tracking devices.
Truck theft is getting more and more organised. Heavy vehicles particularly are stolen to order and rapidly broken up for parts in a 'chop shop'. Speedy detection is essential.
A tracking device concealed in a truck, activated as soon as it's stolen, can bring results. Tracker Network claims a 94% recovery rate for its Tracker device, with an average four-and-a-half hour recovery time and a record of just four minutes. Recent successes include finding a van which revealed the whereabouts of eight stolen vehicles and recovery of construction plant worth 2100,000.
Insurance companies are now offering discounts for fitting immobilisers and, increasingly, tracking devices. Their interest centres on two devices with national coverage, Tracker and Securicor's TrakBak. Norwich Union offers a 250 rebate the first year they're fitted and 225 a year thereafter.
Owners of Tracker-fitted vehicles must notify the company as soon as they're stolen. The device is activated and can be located by equipment in police cars and helicopters. All 51 UK forces have vehicles so fitted.
Tracker costs 2399 (inc VAT) and installation or 2199 initially and 261.10 a year. TrakBak, at 2599 + installation + 2120 annually, is more expensive. But it activates automatically when the vehicle is stolen, saving vital time, and is tracked by Securicor so police need no special equipment. unstaffed patch of waste ground at the back of a lonely industrial estate. But premiums for problem sites can be reduced by showing evidence of improvements to security But the real interest at the moment is security devices. There is considerable cynicism about vehicle alarms, as their visible deterrent potential is offset by the information they provide today's highly professional thieves. Insurers prefer more silent allies.
"Especially with the larger vehicles, it's well worth fitting immobilisers or tracking devices," says John EnnaIs, a partner with brokers FC Gardner & Co. "On individual goods vehicle policies it's not unusual to get a 10% discount. The higher the premium, the greater the impact, such as new starts or where bonuses are low. The first year savings can pay for them."
Immobilisers alone will earn a discount from many insurers. But the new tracking devices have the potential to make a huge impact on rising theft figures. Insurers are increasingly backing trackers.
A problem here is that, unlike cars, there are no set standards yet for truck equipment. So insurers are having to set their own standards.
Frequency
The third area where you can save is reducing your claims frequency The simple way to do this is to accept higher excesses. Most insurers impose a compulsory £250 excess and offer a £250 voluntary excess on top. Given the frequency of minor knocks, brokers believe it is extremely wise to accept it. "If you have a serious accident it has to go through but there's minor things such as windscreens and small bumps that shouldn't be there," says Tony Gardiner. "We always advise people to have a decent sized excess. To get a quotation you have to provide a confirmed claims record showing the frequency, number and size of claims for three years or, better still, five."
But even with new ventures, excesses can help.
"It can decrease the premium," says Pat Goodman of Goodmans Insurance Consultants which specialises in new starts. "Insurance companies will sometimes negotiate a higher one."
Goods-in-transit insurance is also increasingly subject to scrutiny when the destination is overseas. Turkey and eastern Europe are predictable high-risk areas, but one of the biggest problems lies within the European Union. The theft problem in Italy is now so acute that all insurers are restricting cover. If lorries are hijacked there the operator is required to pay 20% of the claim, or 30% if the vehicle is to be left unattended.
Higher rates are also unavoidable in eastern Europe, especially Romania. If you don't want to pay them, don't go to these countries.
Vehicles, goods in transit, depots and public liability mean an operator needs up to four separate policies. Most brokers will offer a package obtained from different insurers reflecting their differing specialisms.
Underwriters show little interest in offering packages except for the recent offer by Provincial to add public liability insurance to the basic goods in transit coven Given the difficulty in persuading some operators to have liability insurance at all, it remains to be seen how much interest there will be.
But the message from insurance companies is clear: manage the risks you present, give as much positive information as possible and show clearly what you're doing to reduce risks. You will win premium reductions significant enough to pay for some of the measures.
Risk management makes sense, If a truck with your name on the side has a spectacular and destructive accident, your public image suffers. If a truck plus cargo goes on a magical mystery tour then your customers miss their delivery schedules and suffer major inconvenience.
Insurance can only pay for the direct cost of the loss or damage. Risk management can reduce the damage to your reputation, and cut your insurance premiums too.
LI by John Reeds