Commercial Fleet Insurance

You can usually insure many of the same types of vehicles, like cars, vans, trucks or motorbikes on their own policy, or you can insure a range of different vehicle types on the same policy.

In terms of the levels of cover you can take out, they’re typically the same as on your personal vehicle insurance:

Third party only (TPO) – This covers the costs of any damage done to other vehicles, property or people involved in an accident with one of your vehicles. It won’t cover any damage to your vehicle or property, leaving you liable for any costs. To drive on UK roads, this is the minimum level of cover you need in your fleet insurance, no matter how many vehicles you have on the books.

Third party, fire and theft (TPFT) – This offers the same level of cover as third party only cover, but also provides financial protection in the event any of your vehicles are stolen or damaged in a fire.

Comprehensive insurance – This provides the highest level of cover for your fleet vehicles. It gives them the same level of cover as third-party, fire and theft and will pay for damage done to your vehicles if they’re in an accident.

If your vehicles are to be driven on UK roads, then you’ll need insurance cover for your fleet. This can either be done individually per vehicle or it can be done using a fleet insurance plan.

Fleet insurance is the best way to cover your business, drivers and vehicles in the event they’re involved in an accident, whether it’s their fault or not.

It’s also much easier to manage than insuring each vehicle individually, as you only need to manage one policy, along with having only one renewal period.

Once you’ve taken out your fleet insurance, you can easily add more vehicles to the policy later on if you need to.

It can also be much cheaper to take out a fleet insurance policy than several individual policies, meaning you’re keeping more money in your business.

Finally, having fleet insurance can make your business easier to run because it allows flexibility for your staff, with your permission to drive any of your vehicles, rather than restricting people to only being insured on one vehicle each.

This means you can more easily adapt your day if a driver calls in sick or you unexpectedly have to switch drivers.

Strictly speaking, any business with more than one vehicle can benefit from fleet insurance.

However, some businesses more naturally suit a fleet insurance policy.

If you think your business could benefit from this type of policy, or you’re not sure how it could benefit you, get in touch with us, and one of our expert advisors will be able to help you make an informed decision.

It’s possible to get a family fleet insurance policy if your household has more than one vehicle.

But you’ll need to be clear about what you need when arranging your policy. Policies of this nature normally are more restrictive in this respect, drivers and use type.

Fleet insurance policies are highly customisable around your business, which means you can adapt and add other types of insurance to your fleet’s policy.

This can also help to reduce the cost of your overall insurance price if you get a deal through the same provider.

Although fleet insurance can be cost-effective for your company’s fleet of vehicles, it’s worth noting that there are some things you can get from a personal vehicle insurance policy that might not be available as part of a commercial fleet insurance policy.

Some things that might not be included in your fleet insurance deal might be:

No claims discount

Fleet insurance is rated on what is termed ‘fleet rated’, which means an underwriter looks at the number and frequency of your claims over a 3 or 5-year period.

Theft from vehicles left unattended

Because company vehicles can often be left parked for long periods (like when out on deliveries or left on site overnight), many insurers can be reluctant to insure against theft from vehicles left unattended.

If you’re not sure whether you’re getting the level of cover you need, make sure you talk to your insurance broker or fleet insurance provider.

In terms of costs, your premiums will differ from policy to policy depending on the type of business you run, the items, goods or passengers you intend to transport, the performance of your policy over time and the number of vehicles you wish to insure. Differences will occur related to the type of security features each vehicle has and the vehicle management in place, too.

You’ll also need to detail the histories of your drivers, as, if they have been legally penalised for any traffic offences in the past, you may find it renders your fleet a little more expensive to insure.

For these reasons, investing a bit of time into preparing your fleet is well worth it.