Fleet Manager calculates the loss ratio in order to be able to draw conclusions about a possible premium increase.

Reduce claims ratio and save costs in the fleet

Around 2.4 million road accidents were registered in Germany in 2022. As a fleet manager, you are faced with the task of not only managing your company’s vehicle fleet efficiently, but also ensuring greater safety. An important key figure that can help you with this is the loss ratio. In this article, we explain why it plays a major role in the vehicle fleet and how you can reduce the loss ratio with the right measures.

What is a loss ratio and why is it important?

In the vehicle fleet, the claims ratio shows the ratio of claims to the number of vehicles in the fleet. It provides information on the percentage of vehicles that have suffered damage in a given period. The claims ratio is an important indicator of the safety and condition of the vehicle fleet.

In the insurance industry, the loss ratio is the ratio of insurance benefits for claims to the premiums paid by the policyholder. It therefore influences your future premiums.

The loss ratio is relevant for various reasons:

  1. Cost reduction potential: A high claims ratio can lead to higher insurance premiums and subsequent costs for replacement mobility and repairs By reducing the claims ratio, you can make considerable savings and use your budget more efficiently.
  2. Safety: A low claims rate is an indication of a high level of vehicle safety and protects not only your vehicles, but above all your employees. Targeted loss prevention measures can prevent accidents and thus minimize the risk of injury for your drivers.
  3. Corporate image: A fleet with little damage signals professionalism and reliability. Customers, employees and business partners trust a company that minimizes risks.

Avoid accidents: Reduce loss ratio

An accident in the vehicle fleet can result in considerable consequential costs. In addition to the direct repair costs , there are costs for replacement mobility, employee downtime, loss of sales because orders or customer visits cannot be carried out, as well as internal expenses for damage processing and claims for compensation. As a result, insurance premiums rise and reputational damage can occur. These expenses and factors should be taken into account when considering the consequences of an accident.

It is therefore important to take preventive measures to avoid accidents and thereby reduce the loss ratio.

Safe on the road?

Reduce the risk of damage and instruct your drivers on how to handle vehicles safely and what to do in the event of an accident.

Reduce loss ratio: these 5 measures will help!

  1. Analyze the frequency and causes of damage: Damage cases should be evaluated under certain considerations – are there clusters of damage at certain times, in certain situations or due to a certain driving style, such as speeding? Based on the results, you can minimize risk factors through appropriate training or vehicle equipment.
  2. Driver training: Invest in regular driver safety training and educationopen_in_new for your drivers to improve their safe driving skills and awareness. Reward good driving performance to create incentives. Telematics systems can provide information about behavior. However, make sure that you obtain the approval of a works council, for exampleopen_in_new.
  3. Vehicle maintenance and inspection: Ensure that the regular maintenance and inspection dates are adhered to in accordance with the manufacturer’s specifications. Keep a detailed maintenance log for each vehicle type in the fleet to maintain an overview. Rely on qualified workshops and high-quality spare parts to ensure the longevity of your vehicles.
  4. Claims management: Develop effective processes to rectify damage quickly and professionally. Clarify responsibilities and introduce clear procedures for damage reports, repairs and insurance matters.
  5. Insurance premiums: Negotiate with insurance providers to get the best terms for your fleet and reduce potential claims costs. There are also special telematics tariffs.
A fleet manager checks various documents of an insurance contract.
If the loss ratio is too high, it usually leads to an increase in premiums. However, since the loss ratio fluctuates, it should be recalculated regularly.

Reduce loss ratio with the help of software

The use of fleet software can help companies to reduce the loss ratio. Claims are documented centrally and in a standardized manner and can thus be quickly analyzed with regard to relevant data such as causes of accidents, driver behavior and frequency of claims. You do not have to search through documents and folders, but have the advantage that detailed reports show trends and patterns that help to initiate appropriate countermeasures to minimize the loss ratio. In addition, efficient processing can be guaranteed by automating claims notifications and processing.

With the Fleet Management module from Fleethouse, you can record and process all claims clearly and transparently. Simply register and test for 30 days without obligation.

Powerful package at a low price

Fleethouse fleet management software enables you to manage damage efficiently and keep an eye on the costs of each vehicle at all times.

The most important things to reduce the loss ratio

Through regular training and assessments, drivers can develop a greater awareness of safe driving and improve their driving behavior to reduce accidents and damage.

Regular maintenance and inspections ensure that potential problems are detected and rectified at an early stage, reducing the likelihood of damage and the associated costs.

Clear and well-organized processes for reporting damage, repairs and communication with insurance companies can reduce the damage rate.

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