Not convinced you need motor fleet insurance?
Think about this – do you have more than two company vehicles? A large workforce? Or just a desire to make your admin as streamlined as possible?
If the answer to any of these is yes, then chances are your business could benefit from a fleet policy.
Talk to the Rigby Financial team or keep reading as we take an in-depth look at everything you need to know about fleet insurance.
What is fleet insurance?
If your business involves the use of commercial vehicles, you may have heard of fleet insurance as a means of ensuring that you are covered for any and all potential issues.
For businesses with multiple vehicles, it is a cost-effective and more streamlined way to manage insurance.
What does a fleet insurance policy cover?
A commercial fleet usually consists of two or more vehicles – although smaller groups of vehicles can sometimes be referred to as a “mini fleet”.
There is usually no upper limit to your fleet size and a variety of different vehicles can be insured under one policy – in fact, a fleet can refer to several different makes and models of a lorry, van, or truck and will still qualify.
In terms of the policy’s actual performance, it’s similar to regular car insurance in that you have a number of cover options to choose from. These range from third party to third party fire and theft and also fully comprehensive cover.
- Speak to an advisor to find out more.
Should I purchase fleet insurance?
If you use two or more vehicles in your line of work, whether you operate them as an individual or hire drivers to operate them, then it’s usually worth looking into fleet insurance.
It’s much easier than insuring each vehicle individually, as your premiums will all come under one umbrella and you can take care of all of them at the same time – which means less paperwork, less chance of one vehicle being forgotten, and you’re free to get on with the things that matter in the day-to-day running of your business.
Remember, every insurer will offer slightly different options when it comes to fleet insurance, so you must be sure to explain your exact requirements to your provider and confirm precisely what cover is involved before you purchase a policy.
Are there different types of fleet policy covers?
Yes.
You can get third party, which covers you in cases of damage or loss of other vehicles, or injuries to third parties caused by your vehicles. However, this doesn’t cover your own vehicles.
You can also get third party, fire and theft, which covers all of the above as well as damage to your own vehicles caused by fire and incidents of theft perpetrated against your fleet.
Finally, there’s fully comprehensive cover, which does exactly what it says on the tin. Covering the above specifics as well as any costs arising from accidental damage that vehicles within your fleet may suffer.
How many vehicles can one policy cover?
There isn’t usually a limit, but this is something you must remember to ask your individual provider.
It’s normal for there to be a lower limit, which is commonly three – but some policies will go as low as two.
What kinds of vehicles can I insure?
Vehicle fleet insurance can cover virtually any kind of motorised vehicle, from private car to taxis and from tractors to articulated lorries.
If you have cherished, specially adapted or unique vehicles within your fleet – say you run tours on vintage buses, for example – you may find that, while fleet insurance covers you for the vast majority of issues that may arise, there might be elements of your vehicle – or very specific eventualities particular to that kind of model – that require a little extra cover or extension of use.
This is why it is extremely important to discuss your vehicles – and your company – in great detail with any prospective insurance broker before you agree on a particular policy.
- Contact our expert advisors for more advice
Why fleet insurance makes more sense for your business
Chances are your business could benefit from a fleet policy. Some of the key advantages include:
Reason #1 – Wider cover
First and foremost, the biggest asset of fleet insurance is the cover.
Taking the headache out of who is – and isn’t – insured to drive company vehicles, a fleet policy offers open cover. By this, we mean that anyone who meets the policy criteria (which is usually only restricted by age) and has the permission of the policy holder, can get behind the wheel.
Offering convenience and flexibility, and removing the need to contact your provider with updated names, you can relax knowing you’re fully covered.
And it’s not just who’s driving that’s flexible. A fleet policy can cover a wide range of vehicles including cars, vans, minibuses and HGVs, keeping all options open.
Reason #2 – It keeps things simple
One policy. One renewal date. If only everything could be this easy.
Fully tailored to the needs of your business, motor fleet insurance really does help to streamline company processes.
With one policy for all vehicles and drivers, you can combine all your cover into one – what could be simpler than that?
Reason #3 – It saves time
Never enough time in the day? We know the feeling. Which is why taking out motor fleet cover can be a huge advantage to businesses.
By switching individual policies for just one, admin time can be significantly reduced. You only have one renewal date to remember, one policy document and one provider to deal with. Cutting down on time trawling through files to find the right documentation and the stress of worrying your provider has all the correct driver details.
Reason #4 – It saves money
We’ll be straight with you here – you’re not going to save vast amounts of money with a fleet policy. That said, it is definitely cost-efficient and usually cheaper than insuring every vehicle separately.
Generally speaking, the more cars you insure the greater the discount to be had.
But (and it’s a big but) when you take into account the manpower and time saved by having one comprehensive policy, regardless of the number of vehicles involved, there are still clear financial benefits.
Reason #5 – It gives you flexibility
Never quite sure who will be in the driver’s seat or which vehicle will be available?
Whether every day is different or you’re the kind of business that experiences a fast staff turnover, take the hassle out of making sure you’re fully insured with a fleet policy.
Even better, when it comes to motor fleet insurance, it’s not just about day-to-day flexibility. The cover offered by the policy can also be built around your requirements, providing different levels of cover for different vehicles but still under one comprehensive policy.
When wouldn’t a fleet insurance policy be beneficial?
While fleet insurance can be highly beneficial for most businesses, there might be times when it’s better to stick with a single vehicle policy.
Usually the main factor in deciding this is the size of the fleet you want to insure.
The biggest discounts go to larger fleets, so if you only have a small fleet and a few drivers, it might be worth sticking with single vehicle policies until you use more vehicles, or want to insure more than one driver per vehicle.
You might also need to be careful about using fleet insurance if some of your drivers use your commercial vehicles for personal use.
What will my premiums be?
Premiums can vary hugely when it comes to fleet insurance. This is only to be expected when you consider the endless combinations of vehicles, their purposes, and the cargoes that are possible. Premiums can be affected by matters such as:
- the type of goods
- products or passengers that are to be transported by your vehicles
- the areas of the country in which they are to operate
- whether they are to travel overseas
- the security of the compound or premises in which they are kept
- the history of the individuals who operate them
- previous claims experience
There are clear means by which you can keep your premiums down – for example, through keeping your fleet properly managed and maintained, ensuring secure overnight parking, vehicle management procedures such as driver handbook to regular vehicle checks/inspections and only hiring drivers with clean licences and no history of vehicular offences.
Find the right fleet insurance policy with Rigby Financial
A motor fleet policy simplifies the claims and renewal process – but using an experienced broker can streamline things even further.
Need a hand finding the best cover? Is it time to renew? Or do you need to make a claim? As your broker, we’ll do the leg work for you. And if anything changes – a vehicle is sold, modified, or exchanged – all you have to do is let us know. Leaving you to get on with the day job, safe in the knowledge you’re fully protected.
Think it could be time your business made the switch to fleet insurance? Visit our fleet insurance page to find out more, call us on 01744 886077 or fill in our enquiry form and we’ll be in touch.
About the author
