Why Fleet Insurance for Businesses

Fleet is a type of motor insurance that covers all the vehicles owned by a business or by a single person under one single commercial motor policy. In order to qualify for fleet insurance the company must usually operate a minimum of three vehicles. A fleet insurance policy can have many advantages over insuring vehicles individually, especially if the business operates over 10 vehicles. The advantages can be both on terms of administration and cost savings.

With a commercial fleet insurance, the business only needs to remember a single renewal date for all the vehicles. This not only saves a lot of paperwork for the fleet operator but also saves money in terms of administration. No more getting quotes and submitting individual paperwork for each vehicle. Your time is better spent on what you do best and that is running your business.

Can you imagine if you ran a fleet of fifty vehicles the amount of time it would take over the year to process each and every single vehicle renewal? What if you forget to renew the policy of one of the vehicles? Needless to say that could have dire consequences to your business. This is where a fleet insurance policy is not only easier to manage but could also save you many man hours in paperwork. On the renewal of a fleet insurance policy the insurance broker will send you a single renewal reminder covering all your vehicles. Not only that but the broker will also search the whole of the fleet market on your behalf to see if they can save you even further money by obtaining better terms elsewhere.

What do you do if one of the fleet vehicles was involved in accident? Usually a single call to your broker is all it takes. If possible the broker will arrange a temporary ‘like for like’ vehicle so that you can carry on with your business. This will depend on your policy type and also on the accident circumstances.

How can you pay for a fleet insurance policy? Most insurers will offer a one-ff payment option or the premium could be spread over 9, 10 or even 12 months in some cases. Not only do you have to remember a single date for your insurance but the premiums can be paid monthly to suit your budget.

What if you want to add or subtract vehicles from the fleet policy? Again this is where the flexibility of commercial fleet insurance policy really shines through. Keeping the same policy you can add or subtract vehicles at any time during the life of the policy. Obviously if you add on additional vehicles their will be an additional premium to pay but likewise if you subtract vehicles you will be given a return premium. The premiums are usually calculated on a pro-rata basis.

Another worthy point to note is that the level of cover available is also flexible. So some older vehicles can be insured on third party basis and the newer vehicles can be insured for Comprehensive cover. The choice is entirely yours how you want to tailor your fleet insurance policy.

Some useful extras on fleet insurance policies to consider are the legal expenses cover and vehicle breakdown cover.