Car Guide

Fleet Insurance Explained

Fleet insurance is the combining of coverage of all the motor vehicles owned by a business and placing them under one insurance policy. This can includes cars, Lorries, minibuses, motorcycles, taxis, trucks and vans. This is also a popular way for families with more than 2 cars to get a better deal on their private multi car fleet.

Types of fleet insurance policies

There are three different types of coverage a business can take out on their fleet.

  • Comprehensive
  • Fire and Theft
  • Third party or Liability

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Comprehensive coverage

  • This covers all drivers employed by the business that has a valid Driver’s license and meets the criteria of coverage, over the age of 25 when they are operating a company vehicle.
  • Covers the cost of repairs to both vehicles and medical bills for both the employee involved in the accident and the third party if the accident is the fault of the employee.
  • The number of vehicles covered can be from two vehicles and up in the fleet.

Fire and Theft coverage

  • Covers all the vehicles in case they are stolen.
  • If the vehicle is consumed in a fire, the policy can be written to have it replaced.

Third Party or Liability coverage

  • This policy is similar to comprehensive except only the third party involved in the accident will have their medical bills covered and their vehicle repaired. The repairs to the bushiness vehicle and medical bills of the employee are not covered when the accident is the employees fault.
  • This covers all drivers of fleet vehicles employed by the business that have a valid Driver’s license and meets the criteria of coverage, over the age of 25.
  • Coverage can be provided for all vehicles owned and operated by the business.

Advantages of having Fleet Insurance

  • The managing of one policy for all vehicles owned by a business is easier and less time consuming when a claim is necessary.
  • Most insurance companies provide a discount to business when this type of policy is taken out.
  • Any employee can drive any vehicle and be covered as long as they are licensed for that type of vehicle.
  • All of the vehicles that are covered are listed in the policy and to what extent they are covered. This allows for a smoother claim process with the insurance broker.
  • Only one premium has to be paid for the entire fleet to be covered.
  • This policy can be on auto renewal so coverage is constant for the entire fleet.
  • The only time the insurance broker needs to be notified other than when a vehicle is involved in an accident is when a vehicle is added to the fleet or one is retired.

Items that can reduce the premium of a Fleet Insurance policy

  • New vehicles cost the most to cover with any type of insurance so business that purchase or own old or at least not new vehicles will have a lower premium than business with a new fleet of vehicles.
  • Drivers who are over the age of 25, with a valid driver’s license and a clean driver’s record.
  • Passenger vehicle and light weight trucks are less expensive to cover than commercial vehicles like Lorries and vans.
  • Light trucks or up to 10,000 lbs are less expensive to cover than medium Lorries or from 10,001 lbs to 20,000 lbs.
  • Heavy duty Lorries are the most expansive to cover with weights over 20,001 lbs.
  • The more expansive the vehicle is to purchase, the higher the cost in coverage.

The exact coverage a business needs to cover their fleet is determined by their usage, commercial or private; size of the fleet along with the age and records of the drivers.