How does fleet insurance work?
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 8-12) 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.
- 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
- The personal motors of the business owner
