What is Fleet Insurance?
Fleet insurance enables you to purchase cover for all your vehicles from one broker which is normally rewarded with a discount on your annual premium. This type of cover is flexible and can be used to insure 3 vehicles upwards. In addition the vehicle type need not be the same for example 2 cars and 1 van can qualify for fleet cover.
Many companies operate more than one commercial vehicle to operate their daily business. Delivery companies, construction companies, roofing companies, sales companies and taxi services are a few of many examples of commercial businesses that rely on vehicle fleets. For these companies a fleet policy can be more affordable than insuring each individual vehicle separately.
What type of business can this type of insurance be used for ?
If you need more than 1 vehicle to operate your business, then most likely you will qualify for fleet cover, some of the most common business models include:
- Private Hire
- Social and domestic if this in addition to business use.
- In summary to the initial question, practically any business that relies on a fleet which is more than one vehicle to conduct their business.
Report All Accidents Quickly - No Matter How Minor
When an accident does occur no matter how minor it is always important to advise your broker immediately. Failure to do so in thinking maybe that the other party will not take action may well result in a hefty bill some time later for such things as a replacement vehicle, solicitor costs and vehicle storage fees. All of these most likely could have been either reduced or removed had your broker been informed at the time of the accident. The end result could be a claim that is significantly higher that it would have been had the incident been reported in a timely manner. Remember your policy costs are partly based on your claims history, as such it makes sense to take all steps to reduce your actual claims and thus keep a lid on future policy renewal costs.
A few Top Tips to Reducing Multi Auto Insurance Costs
Do you know your fleet’s claims performance?
Start by asking your current broker for a copy of your fleets authenticated claims experience. When you ask for a copy from your current underwriter it will start a ball rolling leading to possibly reduced premiums come policy renewal time. You may be asking what is it? Within the insurance industry it is a standard form that details information on your fleet's performance over a period of 3 years (or less if the business is new). The form contains all the details of each vehicle in the fleet, such as any claims made and the frequency of payments made by the current underwriters to cover your claims, plus any claims that may still be pending. This form will also be requested by any future underwriter and by just asking you can be sure it will set in motion concerns of losing your valuable business and most likely to a reduced quote for your renewal policy premium.
Often overlooked, but the cost of your fleet plays a key role in determining your premiums , as such you may wish to consider buying cheaper vehicles or choosing vehicles that fall into the categories that attract lower premiums, which correlates to the initial vehicle price plus costs to repair. This is also true for family vehicle insurance policies.
Get the Governments Pass Plus Certificate
This a practical driving test engineered by the UK government that takes at least 6 hours. Check with any perspective insure if they offer a discount for having gained this certificate, not all insures offer this discount so do shop around to find the ones that do.
Types of Cover Available
Multi vehicle insurance like singular vehicle cover can be third party only which is the minimum legal requirement to drive on the UK road system. An extra level of protection that will also include fire and theft can also be purchased in addendum to the basic third party cover. The highest level of cover includes the previously mentioned, but also covers your personal or business costs resulting from an accident. When purchasing cover for your vehicle fleet do take time to consider other aspects, for example does it include cover for driving in Europe or further abroad, do you require breakdown cover to be included or goods in transit cover? These are all important questions that should be considered prior to the purchase of your sole trader or company policy. On some items such as windscreen repair and breakdown cover it may be cheaper to deal direct a nationwide service provider than add direct to your company or business policy.
Never Under Insure
Always check what is included in your policy as you may find that your have cover that your business does not need and removing any such items will bring down costs. Whilst over insurance means paying for something that you do not need be careful that you do not omit cover that is required or skimp on the level of cover leaving yourself or your business under insured.
FAQ - Who Can Drive ?
This is a frequent question. You will find that most fleet policies are usually arranged on an Any Authorised Driver basis which means that anyone can drive with the permission of the company/directors. However discounts can apply if you start to restrict to named drivers or based on age (e.g. Any Driver over 30). If you include young drivers under 25 is likely to result in an increased policy excess.