Let’s face it, accurately administering insurance on numerous commercial vehicles isn’t exactly the most exciting task in the world! However, it’s one that that you need to do in order to cover the risks you take as a business everyday when you put your people and vehicles out on to the roads.
Insuring a fleet of vehicles isn’t necessarily complex, but there are a number of important factors to be considered, and if you are insuring several vehicles individually, at different times through the year, you’re having to consider those factors each time. To be honest, it can be a bit of a headache!
Fleet Insurance aims to remove such headaches by providing less hassle, more efficient pricing, improved flexibility and a simplified payment option. In this short blog we analyse and discuss why fleet insurance is a great option to help protect your commercial vehicles and drivers.
What is Fleet Insurance?
Fleet insurance is an insurance policy which provides cover across a fleet of business vehicles. It allows businesses to insure their entire fleet under one simple policy rather than insuring vehicles individually. It also allows them to insure all drivers for all vehicles.
Fleet insurance policies include multiple vehicle types – including vans, cars and bikes, and is available to businesses that lease or own at least two vehicles. Not only is this type of insurance easier to manage but allows their finance team to deal with one annual premium, making payment a lot easier.
What are the advantages of fleet insurance?
When it comes to business, time is money and the administration involved in insuring individual vehicles can eat up valuable time – especially when you have a huge fleet. However, as fleet insurance covers your whole fleet of vehicles under one policy, this means there is a lot less paperwork involved and less hassle all round. Giving your team more time to focus on what’s important!
Not only does a Fleet insurance policy offer less hassle at renewal time but it can also be much more cost effective than insuring your vehicles individually. Depending on the size of your fleet, taking out a Fleet Insurance policy can save a significant amount on your insurance premium.
Fleet insurance is a lot more flexible than generic individual motor policies. Fleet Insurance policies allow your business to be able to pick and choose which vehicles are covered under the policy and whether each driver has access to all vehicles or just specific vehicles. And this can happen quickly too. so when your business needs to react quickly to a situation, with additional vehicles and drivers, a quick call to your broker with some basic details, and you’re on cover.
Fleet insurance easier to manage. It also allows finance teams to deal with one annual premium, making payment a lot easier to both perform and forecast. This will be a well-received benefit to both staff tasked with performing payment, and directors tasked with monitoring monthly/annual outgoings.
What levels of cover are available?
Just like normal insurance, fleet insurance also provides three levels of cover for the policy holder.
- Comprehensive – covers damage to both your own and/or third-party vehicles as well as any injures incurred by you, any passengers and third parties. You are also covered in a fault or non-fault accident.
- Third party, fire and theft – This covers any damage to third party vehicles while covering your vehicles from fire and theft.
- Third party only – Covers only damage to third parties, including any damage to other people’s property vehicles, plus any injuries to other and your passengers.
Please note – each insurance provider has their own unique view on the levels of cover, so ensure you read your policy agreement to see what is included and what is not.