Guide to business fleet insurance

In a sense, the term “business fleet insurance” describes the product perfectly adequately. It is insurance for vehicles that can be described as comprising a business fleet.

Of course, there’s more to it than that!

Here is a quick overview of some of the key features of such cover. Please remember though that the specifics of such insurance may vary between policies. Not all providers of fleet or small business fleet insurance will necessarily offer the same features as those listed below.

Fleet sizes

The first point to note is perhaps one clarifying a common misconception. Fleet cover may be available for fleets ranging from those associated with major enterprises with dozens or even hundreds of vehicles down to small business fleet insurance offering cover to a minimum of three vehicles.

Mileages

Business fleet mileages can be high. Policies that have mileage caps might prove to be cost-ineffective.

Fortunately, some business fleet insurance policies offer unlimited mileage options.

Mixed fleets

It might be possible to insure fleets on a single policy even though they are of mixed types.

One such example might be if your business has some company cars, vans and perhaps lorries too.

Private mileages

Some companies allow their employees to use their work-allocated fleet vehicles for personal and recreational use at weekends and in the evenings. If so, these policies may be able to provide single source cover.

Multiple drivers

Certain policies of this type might be able to provide cover for any driver including younger people – providing that they hold a suitable licence.

Note that some drivers with very serious motoring convictions might be excluded or possibly necessitate the payment of an additional premium.

The advantages

This type of cover isn’t just about the individual elements of protection it provides though. It typically also offers some very powerful business incentives over and above individual vehicle policies.

To begin with, this is one policy. That means only one provider to deal with and above all, one single renewal date for all your vehicles. That should prove to be a huge saving in admin overheads.

The second big plus is potentially that of cost savings. Insurance providers offering this type of policy typically recognise that they’re getting all your business and will therefore price accordingly. In retail terms this might be called “bulk buying” but the same basic principles apply in insurance as well.

In other words, typically you might anticipate a cost-per-vehicle cover saving when compared to individual policies.

Points worth noting

Policies of this type might not be applicable for certain types of fleet. They might include:

  • taxis and minicabs;
  • buses, coaches, shuttle-buses or other vehicles types typically associated with public transport or the carriage of passengers for hire-and-reward purposes;
  • motorcycle fleets (e.g. couriers);
  • highly specialised vehicles involved in the carriage of very dangerous materials (explosives, radioactive materials etc.).

In such cases, your provider of small business fleet insurance may be able to suggest alternative more appropriate forms of cover for such vehicles.

Summary

For many fleet managers, fleet or small fleet business insurance might prove to be highly attractive. Its two big attractions of potential cost reductions and ease of administration will appeal in a challenging business environment.

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