How do you calculate the burning cost on fleet insurance policies?

To calculate the burning cost on fleet insurance policies, you first need to determine the total claims incurred over a specific period, typically three to five years. Then, divide this total by the number of vehicles in the fleet and the number of years to find the average cost per vehicle per year. This average is essential for understanding the risk exposure and helps insurers set appropriate premiums. Additionally, consider any adjustments for large claims or losses that may skew the average.