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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.
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.
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?
The way a fleet business owner decides on how to acquire vehicles 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 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.
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.
Other tax incentives include the following exceptions;
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.
At this time there are grants being given so individuals and businesses that purchase electrical vehicles. This includes funds for both cars and vans.
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.
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.
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.
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.
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.
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.
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.
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
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.
Many taxis operate in highly congested urban areas which also contribute to high risk which means higher premiums.
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.
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 cover 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.
When your fleet premium is recalculated it will based in the main on the following 3 key factors. Some do overlay.
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 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.
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
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;
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.
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.
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;
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.
“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.
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
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.
Fit concealed trackers that will enable you to track the exact location of any stolen fleet vehicle.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Article contributed by Eamonn Turley