Utility Saving ExpertFleet InsuranceWhat Is Motor Fleet Insurance

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What 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.

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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?

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Types of vehicles covered by fleet insurance

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

How much does fleet insurance cost?

This is very dependent on the level of cover you choose, how many vehicles you intend to insure, the risk assessment of your drivers and their age.

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

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.