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How does fleet insurance work?

While it isn’t a compulsory insurance, fleet motor insurance is designed specifically for business owners that own a number of commercial vehicles — and takes away the inconvenience of having to insure each vehicle individually.

If you own vehicles that you or other employees use as part of your business, it goes without saying that those vehicles should be insured in some form or another. However, fleet insurance might be of particular value to you as a business owner as it often comes with benefits and savings.

The basics

As we said before, this type of insurance is actually really straightforward. Here are the most pertinent things for you to know:

  • While some insurance companies have a set minimum number of vehicles (usually between 8-15) required in order for your business to qualify for commercial fleet insurance, most insurance companies will work with you to tailor a policy to meet your specific business needs.
  • Just as with regular motor insurance, you will usually have a choice between comprehensive, third party fire and theft, and third party only insurance cover for each vehicle you wish to insure.
  • Some insurers cater more to small-to-medium enterprises, while others are more relevant to larger businesses where fleet insurance is concerned, so do some research to find an insurer that is best for the size of your business.
  • Typically, fleet insurance is group rated rather than vehicle or driver rated, which makes it cheaper for businesses. Insurers will generally look over your total loss history for the past five years and determine what the rate should be for your fleet.
  • Some insurers may be able to assist you with your risk management, such as defensive driving where one of your drivers has more accidents compared to others
  • It’s more efficient — with only one policy per fleet, there is less paperwork and is a lot easier for businesses to manage. Insurers are generally only concerned by the total number of motors on your policy, not the type of motor and will take note of the number at the end of each year.

What types of vehicles can be insured?

Vehicles that can typically be insured as part of a business fleet include:

  • Vehicles that are used for business and are driven by sales reps or management personnel
  • Any delivery vehicles — including heavy transport vehicles
  • Smaller commercial vehicles
  • Plant and equipment

If you’re interested in finding out how fleet insurance can help protect your business, please complete the contact us form below to speak to a specialist.

Article supplied by OneAffiniti

Photo by Markus Winkler on Unsplash