Insurer compares average gross premium per vehicle with the claims cost per vehicle/year during the previous years. If the loss ratio is materially under a certain percentage, eg 60 per cent, the gross average premium may attract a fleet discount. If the loss ratio exceeds, say, 62.5 per cent, then the gross average premium will be increased. The discount or loading takes account of any trend and is applied to the insurer’s tabular rate for each vehicle in the fleet. For large fleets (premiums £100,000) rating is by burning cost or is restrospective, i.e. premiums will be based on known claims costs over a period after payment of an initial deposit premium. over