Fleet Insurance Guides
Fleet Insurance GuidesWhat is motor fleet insurance?
Motor fleet insurance cover, in a nutshell, is a type of policy that safeguards businesses from third party compensation claims in the case of an accident.
If you’re a business that owns and operates an abundance of vehicles, a fleet policy could be just the ticket to covering all of your vehicles and drivers. It’s also the perfect policy to invest in if you tire of managing multiple payments and renewal dates and prefer one policy for all.
Our Utility Saving Expert guide has been created to assist you in determining the right policy for your needs and one that promises to be effective and pocket-friendly.
How does motor fleet insurance work?
Managing a variety of individual policies can be a chore and one that is hard to keep tabs on when you’re a busy business owner. Thankfully, fleet insurance cover is here to the rescue and has been created to cover a wide range of vehicles under the one plan.
How many vehicles are considered a fleet?
The general figure is a minimum of two vehicles, although the number of vehicles can differ and is based on the company in question.
Why does a business need motor fleet insurance?
On top of providing a convenient solution, fleet insurance is often a lot cheaper than investing in a range of individual insurance policies. This is because the price and policy are often influenced by the size of your fleet.
Choose the correct motor fleet policy, and you could stand to save a great deal of money on your premiums. Most importantly, however, you will be putting your drivers and vehicles at risk without it.
Types of vehicles covered by fleet insurance
The majority of policies available on the market today cover specialist vehicles, as well as multiple cars and drivers, which makes it a great choice for the likes of trucking and taxi agencies.
Items you can expect to be covered in the policy include vehicle damage, replacement keys and locks, and legal fees linked to an accident.
The different levels of fleet insurance cover
There are numerous types of fleet insurance to choose from, ranging from the third party to fully comp. Which you choose is entirely dependent on your business requirements.
Fully Comprehensive
Fully comprehensive fleet insurance, as the name suggests, covers everything and boasts the highest level of cover. It tends to cover everything from accidents involving business vehicles to medical expenses to potential hazards and the misplacement of vehicle keys.
One of the most profound differences between other covers available and comprehensive cover is that it protects your company even if the vehicle driver is found to be at fault.
Those looking for the best cover and highest protection level for their fleet will do well to choose a fully comprehensive policy.
Third-party, fire, and theft
This cover policy protects your company cars against third-party damage, theft and accidental fires. One key point to note and a major difference from fully comp cover? If it is your driver who is found to be at fault, it’s highly unlikely you will be covered by this policy.
Third-party only
The least expensive cover is third-party. This type of policy only protects business owners from fees sustained by third-party collisions, loss and theft. Despite this, it is still a popular choice of cover as it is one of the cheapest on the market.
Choosing between an Any Driver or Named Driver Policy
Having a named driver on your policy can cause the fleet insurance premium to go down.
Why? Insurance providers assume, as the vehicle is shared, you’re likely to spend less time driving, meaning less chance of an accident occurring.
Fleet insurance Pros and Cons
If you have multiple vehicles to manage, fleet insurance is a great way to control them all under the one package. Here are a few of the reasons why…
Pros:
Zero Hassle: When it comes to operating a business, time is money, and who has the time to manage multiple covers for multiple vehicles? This is when fleet insurance is a godsend and provides a solution that promises to protect your entire fleet, all under the one handy policy.
Less expensive: This is dependent on the fleet size, but it is likely you will save a good amount on your premiums. This insurance policy is worth more to insurance companies, providing you with more negotiating power, resulting in a more competitive price.
Flexible: Fleet insurance is extremely versatile. As the policyholder, you can pick which vehicles are covered within the policy and which drivers are covered.
Inclusive: Drivers normally unable to get individual cover can often be protected by fleet cover. Why? The risk is balanced.
Cons:
While there are many benefits, there are a few cons to consider too.
Risk is measured based on all drivers: Insurance costs are based on the risk of everyone assigned to the policy. Therefore, if one driver is a high risk, this can affect the entire premium.
Fleet: In general, the bigger your fleet, the better the deal. Fleet insurance for smaller fleets can sometimes prove more costly, especially if your drivers are deemed high risk.
Policy terms: Like all policies, some boast numerous policy exclusions, which is why it is important to read the small print. One to watch out for if you plan to use your fleet for personal use as well as business use? That you’re covered in both circumstances!
No claims discount: Unlike generic car insurance quotes, fleet insurance isn’t privy to incentives such as a no claims bonus. If you own a smaller fleet and all drivers have their own individual NCDs, it may be better value to invest in individual policies.
How much does fleet insurance cost?
How to get cheaper fleet insurance premiums
There are numerous things you can do to lower your fleet premiums, some of which we have listed below.
Install vehicle trackers
Installing vehicle trackers such as telematics or black boxes persuade providers of your motor fleet policies to lower their fees as these devices improve security on the whole.
Install alarms and immobilisers
This will make you a lower risk to the likes of theft, and as such, you’ll be privy to lower premiums.
Limit how often you claim
Each time you make a claim, it is likely your premiums will go up. With this in mind, think about the cost of the claim in question before making a claim. If it’s easily fixable, it may not be worth involving your insurance company.
Consolidate insurance policies
Combining policies can save you a great deal, as all of your cars and drivers will be listed under the one policy.
This is a great option for those with lots of vehicles and those who employ low-risk drivers.
Compare insurance quotes
To ensure you get the best insurance quote available, shop around and do your research. Remember, a cheaper policy isn’t always the best policy.
Using electric or hybrid vehicles
Electric and hybrid vehicles are not only beneficial to the environment; they’re also beneficial to your bank balance.
There are several incentives in place for those running fleets using environmental-friendly vehicles.
Send drivers for advanced driving courses
Enrolling your drivers on advanced driving courses is a great way to lower premiums, as they become less of a risk on the road.
Employ drivers with clean driving records
Employing low-risk drivers is an asset to companies wishing to ensure a smooth operation and lower premiums.
Ensure vehicles are kept in a secure location overnight
Locking your cars up in a garage overnight makes you less privy to theft and, as such, a low-risk option to an insurance company.
Pay a higher excess
Although it doesn’t sound great, a higher excess can keep your monthly costs down on the whole.
How to Compare Motor Fleet Insurance Quotes
Sourcing a quality yet pocket-friendly quote can be time-consuming and challenging, especially with so many options to choose from.
This is when using an online comparison service is a must.
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Final Thoughts
Fleet insurance is a great option for businesses wishing to insure multiple cars under one policy, especially for companies that employ low-risk drivers and have a larger fleet.
Frequently Asked Questions (FAQs)
Can you change the vehicles or drivers on your fleet insurance policy?
Yes, you can. You must inform your insurance company of these changes before they happen to ensure new drivers and vehicles are covered.
Can I get a no claims bonus with a fleet insurance policy?
Unfortunately, the answer to this question is no. However, you will be privy to a fleet claims experience document, which assists in keeping premium costs down going forward.
How is fleet insurance calculated?
Fleet insurance premiums are calculated in response to the average age of your drivers and the size of your fleet, as well as your safety record as a whole. The main factor insurers take into consideration, however, is your claims history.