Who needs fleet insurance?
Fleet insurance is a special type of motor insurance policy that’s designed for people who have multiple vehicles that they need to insure. Common types of businesses that take out fleet insurance policies include trucking firms, taxi and bus companies.
What are the benefits?
Fleet insurance comes with some key benefits over insurance vehicles on individual policies. In most cases, getting a fleet policy enables you to save a considerable amount of money on your insurance. Not only this but it makes paperwork much easier to manage. People who run businesses that own a lot of vehicles are generally very busy so anything that helps cut down on admin is a huge bonus.
What types of insurance are available?
When it comes to the level of cover you can get with a fleet policy, it’s much the same as regular car insurance. There’s Third Party, which will provide the minimum level of cover to enable the vehicles to be driven legally and is the cheapest type of cover available. Then there’s Third Party, Fire & Theft - As the name implies, this is the same as third party, except fire damage and theft are also covered. Lastly there’s Fully Comprehensive. This will cover you for everything that a Third Party, Fire & Theft policy would but also covers you for any accidents that you (or your employees) are liable for. This is the most expensive type of fleet policy you can get.
Is breakdown cover included?
Policies can certainly include breakdown cover as well as other types of additional cover, such as windscreen repair and public liability insurance. Fleet insurance policies are typically highly tailored so it’s a good idea to think about the type of cover that’s best for your particular needs.
How do I get the best price?
There are few reliable ways to ensure you get a good deal on fleet insurance. First and most importantly, you should ensure that you get as many quotes as you can. If you simply take out a policy with the first insurance provider that you contact, then you cannot be sure if you’re getting a good deal.
As well as getting quotes from multiple providers, you can also take other steps to reduce the cost of a fleet policy. One of the best ways to do this is by paying for the policy on a yearly, rather than monthly basis. This might not be affordable in every circumstance but it’s certainly an excellent way to make a significant saving. Something else you can do to reduce the cost of the policy is to ensure that any vehicles named in the policy are securely parked and fitted with alarms.
Can taxis be covered?
Absolutely. Both private hire and public hire taxis can be covered by a fleet insurance policy. Black cabs, minicabs and minibuses are all eligible for cover with fleet insurance, which is why many taxi firms choose to get this type of cover for their vehicles.
How many vehicles can be insured?
As far as the upper number of vehicles that can be covered with a fleet policy, there’s usually no limit. It’s not unusual for some policies to cover 500+ vehicles. For the minimum number, policies offered are usually for 3 or more vehicles, however there are specialist policies available for just 2 vehicles. Of course, the more vehicles named on a policy, the higher the cost will be.
Is there a restriction on the type of vehicles that can be insured?
Almost any type of vehicle can be insured with fleet insurance, including vans, cars, motorbikes, trucks and scooters. The only types of vehicles that might require a more specialized type of policy that not all providers offer are super cars and classic cars. This is because theses types of vehicles generally have a high value and can be very difficult to find original parts for, particularly in the case of classic cars.
Can different types of vehicles be insured on the same policy?
It’s usually not an issue to insure different types of vehicles under the same policy. For example, if you own a taxi firm that has minicabs and minibuses then you’re able to insure both types of vehicles under the same policy, making things that much more convenient.
What factors affect the cost of a policy?
There are several key factors that affect how much you’ll pay for a fleet insurance policy. Some of the main ones include –
- The number of vehicles being insured
- The type of vehicles
- The value of the vehicles
- How secure your vehicles are
- The number of named drivers
- The driving history and claims experience
- Where the vehicles are stored
- How the vehicles are used
What happens when I need to make a claim?
Making a claim on a fleet insurance policy is a very simple process. Because your insurance provider has the details of all the vehicles insured on your policy, when you want to make a claim for one of them, you simply let your insurance provider know which vehicle you want to claim for and what the problem is.
Are there any special steps I have to take when I have a fleet insurance policy?
The most important thing to be aware of when you have a fleet policy is that you must ensure that the Motor Insurance Database (MID) has up-to-date information about the vehicles in your fleet. Many businesses are often selling and acquiring cars all the time, so as the business owner it’s your responsibility to make sure that the MID has the right information. Failure to do this could lead to your vehicles being impounded and dealing with insurance claims that you have nothing to do with.
Is fleet insurance only for businesses?
Although fleet insurance is ideal for many types of businesses that need to insure a lot of vehicles, it isn’t exclusively used for commercial purposes by any means. Many families take advantage of fleet insurance and the benefits it provides too.