Fleet Insurance Guide: Policy, Rates & Quotes

A lot has been written about aspects influencing car insurance rates but almost nothing about fleet car insurance – basically, a car insurance for businesses that have to operate / manage 5 or more vehicles. On the other side fleets can be as big as thousands of vehicles, e.g. rental car or taxi fleets.

What Is Fleet Insurance?

Fleet vehicle insurance is a type of insurance which insures your work purpose vehicles. This insurance gives coverage for your car while you are using it for your business or other for the work purpose. In general, owners of big business organizations are interested in availing this insurance policy.

Important Features of Auto Fleet Insurance

Before opting for an Auto Fleet Insurance for your business vehicles you must be aware about its terms and conditions. If you have done this insurance previously then you need to recheck your policy details and renewal criteria. You can also consult a broker for assistance.

While opting for a policy you can also get in touch with other companies if you are not satisfied with the offers and services of your present firm. If you are satisfied with the terms and policy offered by other company in comparison with the previous one, then you can switch to that company.

If you are doing this policy for the first time then you can find out references of various broker firms before selecting one. You can also select a few of them and go for a consultation with agents of those respective organizations.

You can call more than one quotation for comparing the terms of condition of one company with another. You can always ask for the assistance of an agent through this process of selecting a policy. After completing the selection of the policy you will need to have a face to face interview with the insurance firm. During this session the insurance company will ask you questions related to your auto fleet and other related aspects.

It is very important to have this interview in the best way possible since there should not remain any undisclosed or doubtful aspects related to your fleet or to the insurance policy. Do not forget to clarify your queries regarding the driver’s coverage as well

motor fleet insurance

Is it expensive? Fleet insurance rates

Fleet insurance rates are typically impacted through more aspects than individual auto insurance. This list of large categories includes drivers, vehicles, nature of the business, policy specs and many other aspects. This article focuses on driver as one of the key items considered when calculating a fleet insurance quote.

8 Ways Fleet Drivers Impact Fleet Insurance Rates

  1. Age: Hiring young drivers without significant experience mean that insurance cost will be higher. Vehicle fleet insurance rates work similarly to individual car insurance in this aspect. Young drivers cause higher costs. Older drivers, on the contrary, come with a lot of experience and can help reduce your fleet insurance rates.
  2. History: Hiring drivers with good driving history means lower insurance rates. If your fleet drivers have an extensive history of accidents, tickets and convictions, it definitely will be impacted in your car fleet insurance rates. Thus driving history should be one of the key aspects your contemplate when hiring a new driver.
  3. Training: If you can demonstrate to an insurance company that you have ongoing driver trainings in place, that will drive down your insurance costs. Trained drivers are better prepared for unexpected road situations and tend to create less accidents.
  4. Staying up-to-date: If you are keeping an eye on your fleet drivers, it means that you are aware of all possible issues such as accidents on the individual side, any possible criminal issues etc. Know what the problems are will allow you to mitigate these before they impact your insurance rates and, as consequence, your insurance rates.
  5. Fresh and fit: Avoid getting your driving staff overworked – that will inevitable increase a rate of accidents resulting in higher claims amounts and higher insurance rates. Make sure that drivers get enough rest while being on the route (e.g. via special guidelines or tracking via a fleet management system). In some cases, you will need to emphasize this message to your drivers because they might have had a different experience in the companies where they worked before.
  6. Driver’s job place safety: Make sure that all your drivers have a safe environment – working equipment, air bags, soft pads where necessary. That would reduce in case of an accident an impact on drivers’ life and health reducing accident benefits claim costs. Do not forget that you are responsible for your staff and for creating safe work environment for them.
  7. Safety measures: Make sure that all your drivers get safety training and guidance. They should know in case of an accident or emergency. You might want regularly repeat this training (e.g. quarterly) and make sure that every new driver goes through it as well. Also make sure that each driver has in a cabin a list of necessary telephones including emergency company contact, insurance contact, his/her fleet manager etc.
  8. Drivers habits: Should you have drivers who choose (with company’s permission) take vehicle home and leave that there e.g. overnight or during the weekend, make sure that you have a bob-tail coverage on corresponding insurance policies. This type of policy covers accidents and theft can happen either on the way home / back from home or theft when a company vehicle has been left at home.

Driver is only one of many large characteristics of your fleet impacting your fleet auto insurance premiums. Our full list of business fleet insurance savings lists over 20 other items influencing your fleet insurance cost including business characteristics, vehicle features, fleet aspects and coverage specifics.

Remember that finding a tailored company fleet insurance policy requires a bit of time and comparison . We often suggest going through an experienced commercial insurance broker to get the best fleet insurance quotes . The benefits of a broker are years of experience in this space and also access to multiple insurance companies providing good fleet insurance cost. Some brokers might have a particular experience in your industry / vertical and can help you with practical tips from their experience.

What Does Fleet Insurance Cover?

You can choose from either full or liability motor fleet insurance coverage. Both of these types have their own fair share of pros and cons so your business needs are always your best gauge of which one to choose. Let’s take a closer look.

Full coverage for fleet insurance

Full coverage for fleet motor insurance is suitable for commercial operations where company vehicles must have insurance policies in compliance with the law. The possible options for this type of coverage are numerous including but not limited to uniform coverage for all vehicles or specific coverage for each type of vehicle.

If you want complete coverage, your best bet is the comprehensive and basic liability insurance. It covers medical expenses for the driver and the third party in case of accidents as well as the cost for repairs on the vehicle. Of course, the premiums are higher but this is offset by the greater coverage provided by the motor fleet insurance policy.

There are add-ons to full coverage, which is an acknowledgement by the insurance industry that there will be unique demands made by their clientele. As can be expected, each add-on will cost money but it will be worth it in terms of peace of mind.

Liability coverage for fleet insurance

Liability coverage means that the insurance only covers the third party in case of an accident involving one of the cars in the fleet. Third-party liability covers medical expenses and damages to the car.

When is liability coverage okay?
First, when you have a clear title to the cars. If not, the lender will require full insurance coverage.

Second, when you are confident about your drivers’ competence on the job. This is because liability coverage only applies when your driver is found to be at fault but since you have utmost confidence in their driving skills, the risks are worth taking.

The bottom line: Always study your coverage options when evaluating two or more motor fleet insurance policies being offered. Your bottom line is at stake, too.

When obtaining small fleet insurance the owner needs to declare what the vehicles will be used for. It is not advisable to exclude services in the attempt to lower a premium. This could result in loss of coverage when it is needed. The use of a vehicle will also fall into different categories, which will affect the type of coverage it should have.

These categories include the following:

  • Haulage of products and goods
  • Carrying goods belonging to the owner
  • Carrying goods deemed hazardous
  • Use for airport delivery or pick-up
  • Use by private or public organizations
  • Use for social or domestic pleasure trips 
  • Business use including SD&P

What types of fleet insurance are there? Tips how to save

Tips how to saveMost vehicle fleet insurers will cover most types of vehicle and you may find that a general fleet policy insurance will give you all the cover you need. However, as with every other type of insurance, there are lots of different types of fleet insurance. We will look at some of them here.

Van Fleet Insurance

If your vehicle fleet is made up of vans, minibuses, coaches or lorries, you might find that specialist fleet van insurance is a good option for you.

Something else which is usually more appropriate for business van than for personal vans is fleet insurance. This is when you are insuring multiple vans under the same plan. A group reduction, so to speak. In case you have more than one van, it is possible to protect them under a fleet van insurance, otherwise you may select a solution for mixed vehicles, if that’s what you have. A fleet insurance not only saves you cash, it is also simpler to keep track of than a whole bunch of private plans.

A van is a really flexible piece of machinery. It can be applied to convey children to college, it can be used to transport wares and products, it can be utilised in camping and very long cross-nation journeys, it can even be utilised as a cell retail store or office. Vans are ideally suited since they are modest ample to match in a ordinary sized garage, but spacious more than enough so that it can act like a truck and carry machines and materials for company. A van, therefore, is a incredibly good purchase. This is why it is critical, just like any other investment, to have insurance coverage.

These days, it is very straightforward to get low-priced van insurance policy. It is really only a matter of likely online and browsing for choices. Having said that, a amount of things have to be regarded as and believed about when obtaining finances insurance policies, because the lowered expenses will typically translate to confined protection. Although this is not always a bad factor, it may possibly pose a challenge for men and women who do not make sure that the coverage is actually suited to their needs and lifestyle.

In normal, there are two forms of insurance: personal insurance policies, and industrial insurance coverage. Private van insurance is often just yet another identify for a classic auto insurance, for the reason that it has the identical coverage due to remaining utilized in the identical manner as any other private car or truck. Industrial insurance coverage, on the other hand, is an totally unique story, as it is specified that the van will be applied in a commercial way, these as in businesses. The coverage for commercial vans will usually also include things like the gear or supplies staying transported, theft, flood and fire coverage for the van and its contents, and a lot of some others, in more to the conventional accident and other legal protection protection.

taxi fleet insurance

Taxi Fleet Insurance

If you run a taxi business, specialist taxi fleet insurance may provide the cover you need to protect your assets.

Most insurance policies for taxi companies cover both large and small taxi companies. These policies also cover home operators and contract work. Apart from existing drivers, these policies will also cover new drivers.

Taxi fleet insurance does not have to be expensive. There are many ways of reducing premiums. For instance, you can get lower rates if you build up a descent track record. A clean record will qualify your company for No Claims Bonus savings over time, as you build history and a clean record. This may translate into savings of between 20 to 60 percent.

The experience of your drivers will also qualify you for some discounts. Experienced drivers are less likely to cause accidents, so insurers will lower premiums based on the experience of your drivers. However, drivers need to carry taxi badges issued by the local authority. This badge shows the number of years that a cab driver has been working in the city.

Restricted driving can also lower the amount of money you will pay for taxi fleet insurance policies for your company. Most companies will offer lower rates to business owners who reduce and restrict the amount of drivers per policy.

You can also lower costs by considering voluntary access. While this may lower your premiums significantly, you may have problems when you make a claim.

The following are some attributes of a good taxi fleet insurance policy:
• Unlimited windscreen cover
• From one year onwards a protected no-claims bonus
• Complete accident management and free 50,000 pounds legal expenses cover
• Free roadside assistance 24 hours a day
• Free coverage for spouse when using the vehicle for social purposes only, however, the council will have to approve this

Commercial Vehicle Fleet Insurance

If your vehicle fleet consists of vehicles that carry goods or vehicles that carry passengers who pay a fare, commercial fleet insurance may be the best route for you to take.

truck fleet insurance

Haulage or HGV Fleet Insurance

If your vehicles are used to transport goods over long distances, truck fleet insurance may provide the cover you need.

When looking for a cut in your haulage insurance prices, consider including restricted driving in the policy. Driver policies are widely flexible for fleets but you may have to pay extra premium charges for availing the facility. Restricting your fleet to a stern list of drivers is a good way of bringing down your insurance costs.

Next comes striking a balance between limited use and foreign use. Ideally, a fleet can operate within pre-specified geographical locations and be covered by the policy. When the vehicles of the fleet suffer from damage while outside these locations, cover is no longer valid. Hence, limiting foreign use and staying within the decided geographical areas can lower costs. If your fleet is covered for say, Britain and you need to send a truck to Europe, send one with foreign use coverage.

As is applicable to all automobile insurance policies, having a no-claim history can significantly lower your current insurance costs. If your past automobile insurance policies were fulfilled without making any claims of the insurance company, you can be entitled to significant discounts. These discounts can range from 20% to as high as 60%.

Most haulage insurance policies impose a mandatory excess. This excess is generally around 500. Voluntary excesses may help save money but can cost you dearly in case you need to make a claim.

Remember that haulage fleet insurance does not insure the cargo. The goods will have to be insured separately. You will also need public liability insurance.

Usually, all haulage fleet policies exclude trailer cover. However, some policies may provide limited coverage for trailer. You will have to check the extent of the coverage and whether or not the trailer, when disconnected from the truck is covered. Our advice to you is to list all your coverage needs and possible mishaps. This will give you an idea of the kind of haulage fleet insurance your business requires. Next, create a document of your driver’s specifications. You should include their driving histories, ages, medical-records and whether their driving has progressed or digressed over the years. Having these two documents with you will help you narrow down to the most helpful truck fleet insurance for your business.

Courier Fleet Insurance

Courier Fleet Insurance

If you run a courier business, you can take out courier fleet insurance brokers.

Insurance for the courier business covers a number of areas and it is actually the one aspect of these which you choose that determines the exact type of cover under which your business will fall. For example, if your choice is the haulage policy then it implies that all the merchandise carried in your courier vehicle for transportation to various drop-off locations is covered. A noteworthy point about the haulage policy is that only those goods that belong to other people are covered; whatever belongs to you personally isn’t protected by this cover. For the sake of protecting your personal merchandise and belongings you will instead need to take out the goods in transit insurance policy.

At the point of shopping for courier insurance, of course having determined which specific cover addresses your situation best, you should seek to make inquiries as to what discounts you are entitled to upon purchase. A number of insurers are known to issue courier business entrants with introductory discounts while a majority of insurers maintain a policy of rewarding their customers with regular discounts for their sustaining of good driving records. It is also worth noting that if your courier business operates more than one vehicle you will be required to take out courier insurance for each unit in the fleet. As such you will require finding out more about cheap fleet insurance. This aptly named insurance cover will permit you to have all your courier business’ vehicles protected by a single policy.

How do you get fleet insurance?

Like all insurance policies these days, the best place to look is online. The fleet insurance comparison tool is simple to use and will help you find motor fleet policies very easily.

If you’re new to fleet insurance it’s the quick and easy way to research the fleet insurance market and choose the policy that’s right for your business. Use the motor fleet company comparison tool today.

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