Fleet insurance

Any business with more than two vehicles has a fleet and rather than having separate policies for each individual vehicle, which is administratively inefficient, it will also be costing you more. Having one single business fleet insurance policy will be a more efficient use of time and money as they are always cheaper. Having fleet insurance will ensure that your sales team or construction crew can keep working with the knowledge that a financial safety net is ready to help sort out any issues that might arise.

What is Fleet Insurance?

Fleet insurance is a type of insurance policy designed specifically for businesses with multiple vehicles, so instead of insuring each vehicle individually, they can insure all of the vehicles under one fleet insurance policy. If your company has more than two vehicles used for business purposes, then fleet insurance will simplify administrative processes and also be much more cost-effective than having separate policies for every vehicle your business needs to run.

Types of Vehicles Covered

Fleet insurance is versatile and designed to cover a wide variety of vehicle types, depending on the business and its needs and operations. Effectively any type of vehicle used for the purposes of the business and its daily functions can be covered by fleet insurance. Business fleet insurance can cover cars, vans, trucks, buses, coaches, taxis, motorbikes and scooters, emergency vehicles, and specialist vehicles such as tow, refrigerated, agricultural, and construction as well as plant vehicles and other heavy machinery.

Types of Fleet Insurance

There are a number of different types and levels of business fleet insurance that can be tailored to your company's exact needs depending on the nature and risks of your operations. The most common levels of fleet insurance are Third-Party Only (TPO), Third-Party, Fire and Theft (TPFT) and Comprehensive which are the same as the levels of road risk insurance for any vehicle, with TPO being the minimum coverage required to legally drive your fleet of vehicles on the road. Different types of fleet insurance will vary depending on the business and some of the types available included below

  • Mixed fleet insurance

    Which is designed to cover businesses with a mixture of vehicle types, such as cars, vans and trucks.

  • Named or any driver policy

    These types cover either a specific driver for each vehicle or will allow several drivers for the vehicles owned by the company.

  • Commercial auto fleet insurance

    This is a type of insurance tailored for businesses operating multiple vehicles for commercial purposes.

  • Fleet van insurance

    Can cover companies operating with fleets of vans, giving the option of covering fewer than 15 vans for a smaller business with some insurers covering up to 500 vans on a single policy.

  • Hired fleet insurance

    Providing coverage for vehicles a business doesn’t own but hires, rents or leases for a short term.

  • Cargo or Goods in Transit insurance

    Will cover the goods your fleet of vehicles may be transporting.

As with all our policies here at Prime Cover, we pride ourselves on finding the right policy and add-ons to support your unique business fleet insurance needs at the most competitive prices on the market.

The Benefits of Fleet Insurance

There are a range of benefits and advantages to having fleet insurance for your business’s vehicles. These advantages include:

Cost-savings

Rather than having several different policies and premiums for each of your company’s vehicles, you can combine them into one policy and one premium - saving you money.

Legal compliance

By law all vehicles must have insurance to drive on the roads, and if you employ others in your business, you will be legally required to have employer’s liability, so a fleet insurance policy from Prime Cover can ensure you tick all the boxes for legal requirements.

Coverage

As with any other vehicle insurance, your fleet insurance policy can cover a range of risks from injuries, damage to property, theft and fire to medical expenses for drivers and passengers involved in an accident or legal fees if a liability case is brought against the company.

Flexibility

Fleet insurance policies can be tailored to the exact needs of a business and can be adjusted to grow with the company as the fleet expands.

Peace of mind

Knowing that all potential risks, accidents or interruptions to business operations are covered and also removing the headache of the administration of multiple policies.

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Cost Factors of Fleet Insurance

Premiums for fleet insurance can be influenced by a variety of different factors and understanding these can help businesses to possibly reduce the amount they pay. Some of these factors to consider are:

  • Number and type of vehicles – the more vehicles a business has, the higher the premium is likely to be, and the type of vehicle will also impact the premium as, for example, a fleet of heavy trucks will usually cost more than insuring a fleet of cars. The value of the vehicles will also have an impact.
  • Vehicle use – if the vehicles are used for more hazardous activities, such as towing or transporting hazardous materials, they are likely to cost more to insure than vehicles used for more standard commercial activities.
  • Location – areas with high traffic density, accident rates or crime rates may lead to higher premiums.
  • Driving history – a fleet with drivers who have clean driving records will benefit from lower premiums than those with a history of accidents or traffic violations. The age and experience of drivers can also impact the cost of premiums.
  • Coverage limits – the higher the coverage limits and lower the deductibles, the greater the premium is likely to be, although if a company opts for higher deductibles this can reduce the premium.
  • Policy type – the level of insurance chosen – whether TPO, TPFT or Comprehensive – will impact the cost of the premiums.
  • Payment plan – sometimes insurers will offer a discount if the premium is paid in an annual lump sum rather than monthly.
  • Modifications or special features – vehicles which have been modified or fitted with specialist equipment might have a different risk profile which can impact the premium.

Other factors, depending on the insurer, can be the duration of the coverage, the number of drivers to be insured and even the safety and security measures you put in place - from driver training to alarms and anti-theft devices to reduce the risk of theft. Each insurer will vary in their quotes for fleet insurance and the criteria that impact the premiums. Comparing quotes and coverage will help you get the perfect fleet insurance policy for your business needs.

FAQs

When selecting the right coverage for a fleet, begin by assessing the specific needs of your business, considering the type, value and use of the vehicles. Contact specialised insurance agents who understand fleet risks and can offer tailored advice. Always collect and compare several quotes to ensure a balance of cost and coverage. Remember, the cheapest option isn't always the best—focus on value and comprehensiveness. Get in touch with an expert member of our team today for some knowledgeable advice and a free, no-obligation quote.

Common mistakes include underinsuring, misunderstanding policy exclusions and not regularly reviewing or updating coverage as your business needs change. Also, focusing only on price can lead to insufficient coverage. Avoid these pitfalls by seeking expert advice, reading policies thoroughly and conducting annual insurance reviews. Our team are ready to help you discuss your fleet insurance needs and guide you past common mistakes and pitfalls, so get in touch today.

In the UK, a minimum level of third-party (TPO) liability insurance is mandatory for all commercial vehicles to cover potential damages or injuries to others. If employees are driving the vehicles on behalf of the business, you will legally require employer’s liability insurance as well. You need to check the legal requirements and a fleet insurance specialist, such as Prime Cover, can offer you advice to make sure your business is legally compliant. Why not give an expert member of our team a call

The claims process for a fleet insurance vehicle is the same as for any other type of insurance claim. If an incident or accident occurs you need to immediately ensure the safety of all persons, vehicles and other equipment before making sure you have all the relevant document details, such as photos, witness statements and police reports. You then must inform the insurer quickly, providing all the necessary documentation. At Prime Cover, we have a dedicated 24/7 phone line to enable the claims process to be quick and stress-free. An insurance adjuster will most likely need to assess damages and determine compensation. You should stay in regular communication with your insurer during the process, making sure you fulfil their needs for evidence and paperwork. Once the compensation has been approved, repairs or payment will commence.

To reduce fleet insurance costs here are some tips:

  • Make a point of delivering driver training which emphasises safety.
  • Equip vehicles with safety and anti-theft devices.
  • Plan regular vehicle maintenance checks.
  • Consider higher deductibles for reduced premiums.
  • Monitor driving behaviours using telematics.
  • Maintain a clean driving and claim history.

Incorporating some, or all, of these strategies can lead to discounts with some insurers while still ensuring complete protection.