Insuring Your Fleet: Factors to Take into Consideration

Fleet Insurance is a must for those that deploy multiple vehicles to run their business. Not only is it required by law, but it also helps to protect your investment so your business can thrive well into the future.  

By taking out a multi vehicle policy to cover your fleet of vehicles the premiums will be lower. This is possible because you have decided to purchase insurance in bulk. It is the same principal with most commodities, the more you purchase, the higher the discount is.

Before taking out an insurance policy, an organisation needs to assess how they use their vehicles. Items that factor into the selection for the right type of insurance policy include the following;

What are the different types of insurance that can be grouped into fleet insurance coverage?

Are there any other types of coverage a business should consider?

For protection against lawsuits a pblic liability policy is highly advised. This will cover the legal costs and any settlement when someone files an accusation against your business in court.

Because the fleet will be away from the office when in operation, the recovery of vehicles that break down is very handy to have. Unless a tow truck and mechanic are on staff, Breakdown assistance will cover the costs of recovering the vehicles when they become stranded on the road.

Does every vehicle have to be covered with the same type of insurance?

Each vehicle covered in a fleet insurance policy will have its own individual policy. While all of the policies can be the same, it is not a requirement. This makes it possible for the vehicle used by sales representatives to have Full Comprehensive while the delivery vans to be covered with a courier’s policy.

Conclusion

By taking out a fleet insurance policy all of the vehicles can be covered at a lower price. Because each vehicle is also covered with its own policy that fits the needs for how it is used, the correct type of coverage for each vehicle is obtained.

The dangers that fleet drivers face are considerably more than commuters have to deal with due to their increase presences on the motorways across the UK and Europe. There are ways to reduce these dangers and keep your fleet drivers safer and in so doing reduce your costs for multi car insurance.

Yes training is a key component to reducing accidents and risk levels of fleet drivers. With regularly schedule training session, the most important road safety hazards can be repeatedly discussed so the drivers will have these situations freshly implanted in their minds. These hazards include the following;

By providing your fleet drivers with a consistent message during the meetings, they will be better prepared to avoid the hazard when they encounter them on the road.

Again the answer is yes. This is another area that can be discussed during training. By consistently reminding your drivers of the dangers certain aspects of driving styles they can reduce the risks. These styles of driving that need to be avoided include the following;

What can a company do other than training to reduce the risks on their drivers?

While training is a vital component to reducing risk fleet drivers will face on the roads so are the right types of company policies all drivers must comply with while at work.

To help reduce fatigue there should be a time limit each driver has for continuously operating of a vehicle. Regularly scheduled breaks will reduce fatigue and help to keep drivers alert when on the road.

A policy on the proper use of a cell phone is a must today. There are many locations around the world where texting while driving is against the law. This should also be a company policy so it is in writing. The company should also provide the equipment so the phone can be answered and communication can occur while being hands free.

Each vehicle should also be regularly inspected to make sure they are road ready. This will reduce the risk of mechanical failures on the road.

The most important policy to have is a no tolerance on driving under the influence of alcohol.

A company can reduce the dangers that fleet drivers face by regularly scheduling training session and maintenance inspections on vehicles along with having the right policies in place.  An added bonus of having these measures in place is most insurance companies will reduce the premiums cost for van fleet insurance because the risks have been reduced.

The price of UK fleet Insurance continues to increase. The introduction of keyless car entry  is one of the key reason for the increase in car theft. As a result the price of auto insurance continues to increase. However, there are steps that can be taken to either reduce or keep the costs under control. 

The risk of claim is a main factor in determining your company fleet insurance costs.  

Be proactive and act on the advise below. Communicate with your broker on these and any other measures that could reduce your annual premiums.

1 Telematics

Increasingly technology is improving driving and also reducing the likelihood of accidents. Telematics enables each driver to receive the exact type of training required to reduce avoidable accidents. 

In addition the software will also enable intelligent route planning  based on both historical and real time information. Search for Telematics and Fleet manage for range of software as a service offers all available in the cloud

2 Theft Risk Faraday Wallet

Security is now the number one factor used in determining  your insurance premium. However, it is possible to take steps to reduce keyless car theft. One cheap method is to keep the keys in a metal box or a microwave. Faraday wallets are also available and will provide the same protection as a metal box.

3 Vehicle Security Tracking Devices

Fit concealed trackers that will enable you to track the exact location of any stolen fleet vehicle.

4 Third Party Only 

If you manage a large fleet it may be worth the self insure approach. Effectively you provide  your own fleet cover and just purchase the legal minimum of third party.

5 Combined Insurance

Give your broker all of your insurance business, including employee liability and public liability. In return most brokers will reward you with an attractive discount on your mot fleet insurance.

Employee Car Allowance or Small Fleet

Are you facing the question of starting a small business fleet or providing a car allowance to your employees? Both options have benefits and the choice will depend on your business type and needs.

Having a business fleet of vehicles brings with it additional overheads, but if your company provides a delivery service the fleet option may be the only route. The first question that you must address is should you lease or buy. Each option comes with both advantages and disadvantages and you must select the one that best meets with your business requirements both now and the near future. Always look ahead when planning to make  substantial investment.

Before proceeding with a  leased fleet spend time to work out estimates for your additional costs including lease payments, fuel and fleet maintenance. Will managing the fleet be a full time job? If yes then add in the costs for an additional salaried employee. If the costs make it unfessible you can consider paying your employees an allowance toward a  company car. The employee then leases direct saving you the worry of having to manage a business fleet.

Either approach will still require consideration of the type of insurance needed for the fleet business vehicles. This will depend on the vehicle use and your broker will be able to advise you further on the options for your individual business requirements.

Small fleet insurance will provide cover of all your business vehicles under one policy. The details of the policy will determine the costs. The more flexibility in the insurance conditions the more expensive, but flexibility may be a requirement that your business needs. With large fleets business fleet insurance will provide cover for different vehicle categories for example salesmen cars, delivery cars, vans or even large trucks.

Whichever route you choose spend time selecting the fleet manufacturer provider based insurance categories and the costs to repair and maintain that particular fleet model.

Some of The Rewards That Can Be Achieved

• Significant reduction in claims.
• decrease the time vehicles are off the road for accident repair.
• information can also be used to plan quicker routes.
• safer slow driving will also reduce fleet fuel costs,which by itself is a significant running cost saving.