What is a Fleet Insurance Policy?
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. But what is fleet insurance, and do you need it? Read on, as Rigby Financial explains this particular type of cover in a little more detail.
What Does a Fleet Insurance Policy Cover?
In terms of insurance, a commercial fleet usually consists of two or more vehicles – although smaller groups of vehicles can sometimes be insured 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 options to choose from. These range from Third Party to Third Party Fire and Theft and also include Fully Comprehensive cover. The first option allows you to insure your fleet against damage or loss of other vehicles and any injuries to third parties that they may cause, while the second means your own vehicles are also covered for these risks. Finally, if you opt for a Fully Comprehensive policy, your fleet is covered for all of the above, as well as any costs that arise as a result of accidental damage.
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, you should seriously consider obtaining fleet insurance. It’s so 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 – just to save you from getting a nasty shock later down the line. For example, if your fleet includes vehicles that have specialised features, or are rare or adapted in any unique way, they may have elements that will require something a little extra in terms of insurance. This is something that should be discussed in depth with your insurer.
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 and whether they are to travel overseas, the security of the compound or premises in which they are kept and the history of the individuals who operate them. There are clear means by which you can keep your premiums down - for example, through keeping your fleet properly maintained, ensuring garages or other areas that house the vehicles are fitted with the best security systems possible, and only hiring drivers with clean licenses and no history of vehicular offences.
What Do I Do Next?
If you think you are likely to benefit from the purchase of a fleet insurance policy, your next step should be to look around for the right options to meet the needs of your business. As we’ve mentioned, it’s important to tell your potential insurers anything that you feel may be relevant to a fleet insurance policy in order to ensure that every eventuality is covered. Obtaining insurance for your commercial vehicles may seem like spending money for no reason, but should you run into any legal problems concerning your fleet, the cost of defending yourself in a courtroom and potentially being made to foot the bill for compensation could be enough to cripple your organisation.