Multi Vehicle v Fleet Insurance
If a company is operating more than one vehicle but less than five, I would normally recommend cover on a “multi-vehicle” policy. Each vehicle will earn its own no claims bonus and additional vehicles added will normally qualify for an introductory discount. Having all the vehicles under one policy with a common renewal date also helps from an administration point of view.
For companies with more than five vehicles, fleet insurance becomes a viable option. Rather than having no claim bonus on individual vehicles the insurers allow an overall fleet discount across all the vehicles. Insurers look at the premium they have collected in relation to claim payments and for well-run risk can be offering discounts of 60% plus. Fleet insurance can work well with expanding businesses as additional vehicles automatically benefit from the fleet discount. One or two minor claims during the insurance year may not have much impact on the premium; however it is worth bearing in mind that if the overall experience is bad then the fleet discount is likely to reduce and this will impact across the board.
Fleet insurance also tends to be more flexible, especially if there are younger drivers. I recommend to our clients that a vehicles risk management system is put in place and that drivers are incentivised to improve the risk.
It is important to be insured with an insurance company that acts quickly in the event of a claim, as a vehicle off the road is going to impact on profits.
For more information about multi-vehicle or fleet insurance, please contact Tony Gibbs on 0118 9452944 or complete one of our enquiry forms.