What is Fleet Insurance?
Fleet Insurance, also known as motor fleet insurance, is a type of policy that covers multiple vehicles and multiple drivers under one single policy.
Fleet policies are versatile and can be tailored to the individual needs of the company acquiring a policy.
There is no maximum number of vehicles or maximum number of drivers for a fleet policy and it will be quite common for fleet operators to be adding and removing both vehicles and drivers regularly.
The benefits of a Fleet Policy
By taking out a fleet policy, there are some huge benefits to take advantage of. Through insuring all multiple vehicles under one policy, operators can benefit greatly by not having multiple renewal dates or brokers to deal with.
Using 1 broker to manage an entire fleet can also lead to great discounts and benefits. The underwriter working on behalf of the fleet owners will get to know the policy and type of work and therefore be able to better insure it.
Fleet policies differ from other vehicle insurance policies in the sense that they do not usually rely on a system of no-claims bonus in order to calculate discounts. Instead, larger fleets calculate the total cost of claims over a fixed period of time, and the cost of the premium is adjusted accordingly. A lower total claims value will lead to a higher discount, and therefore a lower premium on your policy.
The insurance brokers that we work with will also allow combined policies where it is possible to add additional cover such employers liability or cover for the goods carried for example. By combining policies, it is again possible to save even more.
Motor Fleet Insurance Coverage Levels
There are a wide range of fleets out there, all requiring different forms of cover. The very basic level of cover is to insure your fleet of vehicles on a third-party basis. This is the very minimum level of cover required by law. It is a very limited form of motor fleet policy and it is always recommended that fleet operators consider a more comprehensive policy to ensure proper coverage.
Third Party Cover
Third party policies will only insure the third party in the event of an accident. This means that should your driver be at fault, only the other person will be covered and you will have to pay for the damage to your own vehicle.
A comprehensive policy is a much more bullet policy that will pay out for your vehicle as well in the event of a fault claim. It covers everything in in Third Party insurance and a lot more.
Whilst the cheaper price may be attractive to anyone looking to insure their commercial fleet, it is important to consider some of the implications of using Third-party cover for a vehicle fleet. These implications can be the exclusion to cover theft of any vehicle that is unattended, or mechanical breakdowns on your vehicle.
The most comprehensive form of fleet cover will not only cover damages to the vehicles, but can also cover personal and business costs that may be a result of an accident.
Combined Fleet Insurance Coverage
The type of activity of your fleet will dictate greatly the extras you need on your motor fleet insurance policy. It is extremely important to include the relevant extras so that your commercial fleet is correctly protected. It is worth sitting down and working out your cover requirements before getting your fleet quotes.
If you are required to unload goods in public places, such as those involved with a courier fleet, then public liability is a must. This basically protects you against any harm to the public or property belonging to the public caused by your drivers.
Employers Liability cover protects your drivers. It is a legal requirement to have this policy in place if you employ people. Fortunately, you can have it added on to your fleet policy quite conveniently.
Goods in Transit Cover
If you carry goods belonging to other people, then Goods in Transit Insurance is essential. This policy add-on covers the goods you carry. It is fully tailorable in its own right so whether you carry cheap goods or expensive goods, you can customise this fleet policy add-on so that it is right for you.
Own Goods Coverage
This covers equipment that is required by your employees in order to successfully complete their work. This may apply to those in craftsmen trades such as electricians
European Travel Insurance
If your drivers are required to travel across the continent, then European Fleet Cover is essential and will protect you against the risks of travelling abroad.
Any Driver Fleet Insurance
Policies for fleets will be broken down as either ‘Named Driver Only’ or ‘Any Driver”. If you have a high turn over of staff or employ agency workers or contractors to drive your vehicles, then fleet insurance any driver is essential to make sure your vehicles are protected.
A business fleet policy for any driver can also be a great way of improving the flexibility of your operation knowing that any driver is able to drive any vehicle providing they have a valid driver’s license.
What types of Commercial Fleet Cover are there?
The list for this question is quite possible endless and covers any company that wishes to insure more than 3 vehicles of any nature.
Courier Fleet Cover
If you are a company consisting of multiple drivers delivering other people’s goods, then it is most likely that you are a courier and require courier fleet insurance.
Company Fleet Cover
A company fleet policy is a broad and blanket term but can be more applicable to service providers or contractors. On a company fleet policy, it is more likely to see more smaller vehicles than large heavy ones.
Taxi Fleet Cover
If your business is transporting people, then a taxi fleet insurance policy is a great way to keep your passengers, drivers and vehicles protected.
HGV Fleet Cover
Fleet insurance is huge within the haulage industry. Each day millions of pounds worth of goods are transported on UK roads which all need correct and proper insurance. HGV Fleet Insurance is essential to get right given the risks involved.
Fleet cover is calculated slightly differently to normal insurance policies. Although having a clean claims record will definitely help, vetting your drivers for claims and convictions and choosing a named driver only policy will better aid your chances in gaining a cheap fleet insurance policy.
Before applying for a fleet policy, first list down and work out the relevant factors that will enable you to compare quotes.
Those factors will include:
– The type of fleet you operate (courier, hgv, taxi etc)
– The level of cover you want (Third part or Comprehensive)
– The number of vehicles you wish to cover
– The drivers details
– The types of goods you will transport
– The areas your fleet will operate in
Once you have completed this, apply for your fleet vehicle insurance quote with us. Our brokers motor fleet insurance can include immediate cover, flexible payment options and is able to accommodate specialist haulage and courier fleets.
If it perfectly possible cover any type of vehicle with fleet insurance. Typically a policy will cover cars, vans, LGV’s and HGV’s but motorbikes and other vehicles can be included.