What is fleet insurance and what does it cover?

Driving

3 min read

What is fleet insurance and how does it work?

If you are a business that owns two or more vehicles the idea of individual insurance policies is daunting not to mention time-consuming. After some preliminary research, you may have found out about fleet insurance. Naturally, the first question to arrive was likely: what is fleet insurance and how exactly does it work?

This blog aims to provide an answer to those questions by first explaining what fleet insurance is. And then addressing how it works by discussing what it covers and the benefits it can offer to your business.

What is Fleet Insurance?

Fleet insurance is a form of business insurance available to companies with two or more vehicles. It allows a business to insure all vehicles under a single policy- saving excess hassle of arranging many individual policies. It can allow a  company to insure all drivers to all vehicles or restrict to specific vehicles. The cover is flexible enough to match the needs of a business. 

Who is Fleet Insurance available to?

Fleet insurance is available to any business with two or more vehicles. It is a multi-vehicle policy covering different types of vehicles the company owns and operates in relation to the business. This includes any company issued cars for employees to use for work, as well as minibuses, taxis trucks and HGVs for example.

What does Fleet Insurance cover?

Just like standard car insurance, different levels of cover are available:

• Third party only - covers only damage to third parties, including damage to other people’s property/vehicles, in addition to my injuries to others and your passengers. This can be the cheapest level of cover and is the minimum amount of legal cover required for motor insurance. 
• Third party, fire, and theft - covers all of the above and any damage to third party vehicles whilst also covering your own vehicle for fire and theft.
• Comprehensive - vehicle coverage that protects the policyholder against all types of damage. It protects you from the cost of damages but does not prevent the damage from occurring.  It is generally more expensive than third party only and third-party fire and theft covers.  

What are the benefits of fleet insurance?

Now that we understand what fleet insurance is and understand how it works by looking at what it covers. We are going to expand further on how it works by looking at the benefits it can offer to you and your business.

1. The convenience of a single policy to cover all vehicles

• • Remove the need to take out individual policies for every vehicle in your fleet. This also offers the benefits of having a single renewal date- this is of advantage to those companies with many vehicles, significantly reducing the admin time that is required

2. Can often mean less expensive premiums

• • Typically, cheaper than having many individual policies. If one of your vehicles is involved in an accident, the premium you pay may not be increased as much by the fleet insurer as an individual policy increase.

3. Fleet Insurance offers additional flexibility

• Options to select the vehicles you wish to insure within the fleet and whether each driver is insured on each or all the vehicles.

How do I get the right fleet insurance?

Now that you understand what fleet insurance is, what it covers and how it works to benefit you/your company. 

As your business relies on multiple vehicles, you’ve probably concluded that fleet insurance is a perfect fit. The most important thing to consider when looking at a fleet policy is to choose what level of cover you need that suits your business best. 

For help and guidance finding fleet insurance contact the experts at AbbeyAutoline on 08000 66 55 44 today.