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How to Build Your Small Fleet Business

Best way to build a fleet of vehicles

Knowing how to build your small fleet business properly is the only way it will become a success. This success will rely on providing the best possible service to your clients so they can rely on you to be dependable while expanding your commercial motor fleet.

Best way to build a fleet of vehicles

For the small business owner, the purchase of new vehicle can be an overwhelming financial challenge. Because of that there are up to 4 paths that can be followed in adding to your fleet.

  • Contract Hire vehicles are a fast way to grow a fleet. What must be remembered is the business never owns the vehicles and the contractors drivers can depart at the end of their term if they so desire.
  • Finance Lease makes it possible to expand the number of vehicle in the fleet without a huge investment. The down side is the monthly installments required to keep the vehicles in your fleet.
  • Finance Lease Purchase that is similar to finance lease but with the additional option to purchase the vehicles at the end of the contract. To help keep the operating costs at a minimum in the beginning, a balloon payment at the end of the contract can be arranged. This allows for the business to own the vehicles after years of being successful so they can afford to make the purchase.
  • Contract Purchase requires either strong financial backing or great credit to secure the funds or loan to buy the vehicles needed for fleet expansion. 

To help the small fleet business owners expand, many dealers and manufacturers of vehicle provide multiple financial options to fit their needs.

Before making the purchase or leasing of a vehicle what should be considered?

  • 1
    When vehicles are purchased, the owner is responsible for the maintenance and upkeep of the vehicle. When leasing a vehicle, the dealer is responsible for the upkeep of the vehicle.
  • 2
    When leasing the amount spent in payments is most of the time tax deductable while payments for ownership are not always tax deductable.
  • 3
    In leasing contracts there is generally a mileage limit the vehicle cannot exceed.  When purchasing a vehicle there is no mileage limit.
  • 4
    When purchasing a vehicle the business is acquiring capital which increases the value of the business. When leasing vehicles, no capital is gained by the business.
  • 5
    When purchasing a vehicle, it is considered an asset and can be sold. When leasing all the money spent on the lease is like rent. Once the contract is over, the vehicle is gone with no revenue going to the business.

The way a fleet business owner decides on how to build a business fleet is generally decided on by their financial situation. Leasing is less expensive but purchasing acquires capital. Choose the path that would be most beneficial in terms taxes and goals so you will stay out of trouble with the government and still see progress.

The best way to build your small fleet business is to do it slowly over time by adding one to three new vehicles to the fleet each year until you obtain the size you need. This makes it possible for your client base to grow in an orderly fashion and makes it possible for you to provide consistent and dependable delivery business.


Why Should You Consider a Green Electric Fleet

Going Green Can Save you money

Why should you consider a green electric fleet can be to save the environment or because within the next 20 years the sales of petrol and diesel vehicles will end. Either reason can be the justification, but the UK is moving towards zero emission vehicles and businesses that make this move now will reap the maximum benefits.  With these moves it is also inevitable that the costs of green fleet insurance will also come down. 

  • 1
    Private hire and reward polices are designed for chauffeurs, Uber drivers and couriers who have a designed person or package assigned to them for transport.
  • 2
    Public hire for reward policies are for taxi drivers that can be hailed by anyone like a person on the sidewalk calling for a taxi.

Is there a tax incentive to go green?

The UK government has made it advantageous to go green with reduced taxes on both electric and hybrid vehicles. Because electricity is not considered a fuel, owners of electrical vehicles do not pay fuel duty tax.

In the 2020-2021 tax revision slated to take effect in the UK the BIK rate or Benefit of Kind tax will see the zero emission vehicles being taxed at 2% while the heavy polluting vehicles can be taxed up to 37%. The UPS are now using an electric truck fleet to delivery goods in Kentish town London.

  • Vehicle excise duty.
  • Company car tax.
  • Van benefit charge.
  • Fuel benefit charge

Another advantage of going green with your fleet of vehicles is enhanced the capital allowance benefits from the UK government. Right now when you purchase an electrical vehicle the cost of it paid out by the business can be written off against the company’s taxable profits for the year of the purchase. This can be as much as £7,000.

Are grants available from the UK government?

At this time there are grants being given so individuals and businesses that purchase electrical vehicles. This includes funds for both cars and vans.

  • Electric car grants are now being issued at a rate of 35% off the retail price with a maximum amount being £3,500. This amount has just been lower from £4,500 this month.
  • Electric van grants are also being handed out to business at this time. The discount off the retail price of a van is at 20%% with the maximum value being £8,000.

What types of vehicles are battery powered?

Other tax incentives include the following exceptions;

  • Scooters and motorcycles
  • Micro cars
  • Low speed vehicles
  • Cars
  • Light duty trucks and Vans
  • Medium duty trucks and vans
  • Heavy duty trucks or lorries

Why invest in a green fleet?

The leading reason is costs. By going green the cost of operating the fleet in both the power needed to propel the vehicles and their associated maintenance costs are lower than the standard vehicles now on the roadways.

Why should you consider a green electric fleet now instead of waiting is simple, because the government incentives, grants and tax benefits will not last forever. The government only uses financial incentives to get the public moving in the direction they want.

Summary

Once the move to going green is the norm, the incentives will no longer be needed and your chance to convert to a green fleet at the lowest possible price will be gone.

What is taxi insurance

What is taxi insurance

Knowing just what is taxi insurance will help you be legally protected when you are transporting passengers in your commercial vehicle. Since you cannot be covered by a standard vehicle insurance policy, a Hire for Reward policy is required. If you operate a fleet then we can provide you with quotes for taxi fleet insurance.

What is Hire and Reward Insurance?

Hire and Reward insurance is the coverage every taxi driver, rideshare driver like Uber, chauffer and courier needs to be legally covered on the road in accordance with UK law. This protects the person you are transporting and their contents.

  • 1
    Private hire and reward polices are designed for chauffeurs, Uber drivers and couriers who have a designed person or package assigned to them for transport.
  • 2
    Public hire for reward policies are for taxi drivers that can be hailed by anyone like a person on the sidewalk calling for a taxi.

Are there different types of coverage?

  • 1
    Policy Only coverage is the least expensive, but as names of drivers are added to the policy, the premiums will increase.
  • 2
    Named Driver policy will only cover 1 driver of 1 taxi.
  • 3
    Any Driver policy is used by taxi fleet operators and is the most expensive.

Once the above selections are made then the exact coverage needs to be decided upon.


  • Third party coverage will cover the cost of repairs and medical bills for the other vehicle when you are at fault in an accident.Third party Fire and Theft coverage. 
  • Third party Fire and Theft coverage is the same as above, but also protects your vehicle if it is consumed by a fire or is stolen.
  • Comprehensive policy is the same as above, but you and your vehicle are financial covered for medical bills and repairs.

Are there special add-ons that should be considered?


Taxi Breakdown coverage will cover the costs of taking your passengers to their final destination if your taxi breaks down or in involved in an accident.

In some taxi policies legal assistance is provided while in others it is not. Read the fine print and if your policy does not cover legal assistance, an add-on for it should be included to cover the legal cost. This is used if you need to take legal action for the recovery of fees or the costs of damage to your vehicle

Replacement Plated Cabs coverage which will provide a vehicle to be used as a taxi within 24 hours of an accident or your vehicle is not road worthy.


If you are not sure what you need, one of our independent insurance brokers are ready and willing to assist you. They can help find the type of policy that fits your needs at a price you can afford.

Why is taxi insurance so expensive?

Public Liability insurance is highly recommended. This will protect you against any lawsuit that might occur if one of your passengers files a lawsuit for damages while they were in your vehicle.

Many taxis operate in highly congested urban areas which also contribute to high risk which means higher premiums.

The biggest reason taxi insurance is more expensive than a standard vehicle policy is because of the increased risk associated with this type of vehicle. This includes the vehicle being on the road more hours and covering more miles than a standard vehicle.

Fleet Insurance Claims Expereince – Why is it so Important

Fleet insurance experience why it is important

Most drivers are familiar with no claims bonus and how it impacts the cost of your ongoing car insurance. Fleet insurance experience is the equivalent when we are dealing with how a fleet insurance premium is derived. Now you will understand the importance held within this document has and how it can impact the cost of your fleet insurance.

This document  is provided by your existing broker. You may find some brokers may be reluctant to provide or make excuses of why it is not available.  Do not accept any such excuses. This document " Confirmed Fleet Insurance Claims Experience " belongs to you and must be released when requested.

So any discount or increase in your busines or family fleet insurance will be based not on indivdual cars, but on the overall claims history.

How is a fleet insurance premium calculated? 

When your fleet premium is recalculated it will based in the main on the following 3 key factors. 

  • The frequency of your claims will be analysed to determine if it is increasing or decreasing
  • The total amount paid out in claims, including anything upcoming. The amount paid out will be reflected in your new premium by way of an increase or decrease. Be aware if it is high the broker may deem you high risk and drop you.
  • The above 2 are not viewed in isolation the number of vehicles in the fleet is factored in. Indeed, if your claims are increasing at the same time of fleet expansion one may mitigate the other.

Work with your insurance company

As it is a statistical analysis insurance companies need at least 3 years of history to be able to truly judge your risk. So if a new policy be aware that the claims you make now will have a big impact down the road.

The insurer does not want to see a trend of increased  claims and it is in both interest that it remains at an acceptable level. Most insurers will be able to offer you if a family fleet or your business risk management training. This training works by putting procedure in place quickly that will reverse any upward trend.

The bottom line it is your actions that will determine if your fleet premium goes up or down. Take action by following the 5 steps to a lower premium and work on risk management to lower your claims experience.

Getting fleet insurance quotes

We can provide you with quotes from a select panel of fleet insurance specialists. This will save you time and hassle of searching and phoning for individual quotes. Select the green button below, complete one easy form and sit back. Within minutes you will start to receive a range of quotes from multiple brokers, enabling you to make easy comparisons

Insuring your fleet – Factors to Take into Consideration

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.  

What is the biggest advantage of having fleet insurance?

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.

How do determine which fleet insurance is right for your organization?

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 types of vehicles are in the fleet?
  • The frequency of their usage.
  • How the vehicles are used in relations to the business.
  • How much coverage does each vehicle need?

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

  • Third Party is the minimal amount of coverage required to put vehicles on the road in the UK. This type of policy covers the repairs and medical costs of the other vehicle when your driver is at fault in an accident.
  • Third Party Fire and Theft is the same as above but there is also protection if the vehicle is consumed by fire or stolen when not in use.
  • Full Comprehensive covers the repairs and medical costs of all vehicles and people who are involved in an accident when your driver is at fault.
  • Any driver fleet insurance is part of the policy where the vehicle is covered independent of who is operating the vehicle. This is needed when vehicles are not assigned to a specific driver.

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

The Dangers that Fleet Drivers Face

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.

Will continuous training reduce dangers fleet drivers face?

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;

  • Overexertion from sitting for a prolonged time behind the wheel.
  • Driving at night.
  • Driving in severe weather.
  • Driving over poorly maintained roads.
  • Delivery deadline dilemma.

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.

Does the driving style of the fleet drivers increase their risk factors?

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;

  • Reckless driving by constantly changing lanes, tailgating and speeding.
  • Being distracted while driving by using a cell phone, day dreaming, eating, drinking, reading and writing.
  • Fatigue will cause a driver to react slower to a situation and reduce their effectiveness when having to make a snap judgment when a hazard is encountered.
  • Being overly aggressive when driving includes cutting other drivers off, blowing horns, making obscene gestures to other drivers and flashing lights to get other to get out of your way.

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.

Conclusion

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.


5 steps to a lower premium

5 steps to a lower premium

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. 

“Cars are being stolen and driven off within seconds,”

Clkive Wain head of police liaison at Tracker

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

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.

Reduce Insurance Costs

Checklist to save money on fleet policy costs

Compare fleet insurance have complied a checklist to help you ensure that you have taken all the necessary steps to keep yout fleet costs in check. 

  • 1
    New customers or renewal time – Most brokers offer attractive introductory discounts for new customers. As such it does pay to shop around at renewal time.
  • 2
    Reduce your annual mileage – If possible agree a cap on your fleet mileage with your underwriter or broker. Reducing time on the road will also reduce risks and thus you insurance costs.
  • 3
    Build a history of no claims discounts – This can play a big factor in reducing fleet cover costs. As such focus on reducing your claims. Reducing claims should result in significant savings on your  insurance costs.
  • 4
    Black Box : The idea here is to show your insurer that you pose less of a risk because you or your drivers are considered safe drivers. The black box records your driving. For example how quickly and how often you break, speed, extreme or jerky steering.
  • 5
    Regular Service : Some accidents are partly the result of vehicles that are not running 100%. For example a braking system that has been left unchecked. Pursuing a company wide policy of regular servicing will help reduce accidents.
  • 6
    Security - Add additional security devices approved by the UK insurance industry.
  • 7
    Increase the excess - Taking more responsibility for the costs of any future claims. Do this by increasing the policy excess amount. This will be rewarded by a policy discount. First ensure that you will be able to afford to pay the excess in the event of an accident.
  • 8
    Expert advice – Take advice from the fleet insurance specialists when unsure of what you should include.
  • 9
    Named Drivers : If possible avoid any driver fleet insurance and choose named drivers only.
  • 10
    Driver Age : Drivers Under 25 Attract A Higher Premium. If possible ensure all drivers are over 25 or If possible over 30.

What is SORN

How  SORN can save you money

If you manage a motor fleet you will no doubt know what SORN is and how it can be used to the benefit of your company. In a nutshell applying for SORN will enable you to stop paying tax and insurance for a fleet vehicle that will no longer be driven on the public roads in the UK. 

For those of you that have an off-road only vehicle you need to know what SORN is and how it will affect your pocketbook. Understanding this legal technicality about owning a vehicle that will not be used on a public road begins with what the acronym stands for or Statutory Off Road Notification.

What can I declare as SORN?

Examples of vehicles that will fall under this category of motorized vehicles include land transportation that will only be used on private land of the owner of the vehicle. It will also include off road vehicle that will be transported to locations off of public roads for use as entertainment or amusement by the owner of the vehicle.

Other vehicles that can be classified as SORN include this collectible and scrap vehicles stored in garages.

  • Vehicles that are not taxed or insured are considered SORN.
  • If the owner of a vehicle plans to part it out and sell it in pieces it can be listed as SORN. This can be an older vehicle that no longer operates or one that has been involved in a motor vehicle accident and is no longer road worthy.

What if I don't apply for SORN

As a legal point, if a SORN is not declared or the official paperwork is not completed, an owner of a vehicle can be fined up to £80 for owning a vehicle and not paying taxes on it.

How to get a vehicle listed as SORN

If you vehicle is not road worthy, not taxed and uninsured it must be declared SORN as soon as possible. If this is not done you may well be fined. 

  • To have a vehicle listed as SORN, the Driver and Vehicle Licensing Agency or DVLA of the UK has to be officially notified by registry that a vehicle is now declared SORN.
  • If the owner of a vehicle plans to part it out and sell it in pieces it can be listed as SORN. This can be an older vehicle that no longer operates or one that has been involved in a motor vehicle accident and is no longer road worthy.
  • When the owner of a vehicle decides to deport the vehicle like selling a vehicle to a new owner in a different country it is also considered SORN.
  • Once the paperwork is complete with the DVLA, the SORN will take effect on the first day of the next month.

Recent change to SORN

A recent change to the SORN system is that once a vehicle is listed as a SORN, it will remain there indefinitely. In the past each vehicle had to be relisted every 12 months. That requirement has been removed.

For the car restoring enthusiasts, once their vehicle is close to or is ready for use on public road, insurance and taxes must be paid before the vehicle can be tested on a public road in the UK. If this is not done, then the owner and driver of the vehicle can be fined for operating an illegal vehicle on public roads.

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