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Saturday, June 10, 2023

Everything you need to know about fleet insurance

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If you are a business with the main aim of transporting goods as efficiently as possible from factory to shop, or your business revolves around getting a customer from point A to point B, it is essential for all of your vehicles to be insured so your fleet runs smoothly.

However, instead of getting single insurance policies for individual vehicles, which can be extremely expensive, why not invest ina policy for all your vehicles?Acquiring fleet insurance is the perfect way to do this.

What is fleet insurance? 

Insuring a vehicle – there were around 37.3 million vehicles licensed for the road in 2016 – can sometimes cost over £1,000. So, imagine the cost of buying these policies for a multitude of vans, taxis or commercial cars. Fleet insurance allows you to buy insurance for a full flock of vehicles and their drivers.

It is a must that you combine this insurance with public liability insurance, as it will ensure that any accidents caused by your drivers or other drivers on the road are covered in needs of compensation. However, fleet insurance will ensure that every vehicle under your company’s name is insured under one policy with one renewal date.

Keep in mind that there are three different means of fleet insurance, allowing you to choose the cover that will best suit how far your vehicles need to travel and how large the commercialised vans will be. Here are the three different types of fleet insurance you can choose:

  • Comprehensive cover: This protects against damage to your vehicle, whether that damageis caused by a third party or by yourself due to an accident.
  • Middle cover: This provides the vehicle with insurance against any potential damage, such as from fire, water or criminal activity, though this can be flexible and changed to solely theft and fire.
  • Third party cover: This means that any alternative vehicle is protected against any accidents caused by your own This is the cheapest of all the insurances and canbe purchased by anyone in the company.

Benefits of fleet insurance

Having such a flexible insurance policy means a plethora of benefits for your business, both financial and work-related. As every worker has now been insured for all of your vehicles, if one of your drivers is sick or has scheduled in some time off, then anyone in your business could drive one of the vehicles for the day.

As long as they have a valid driving licence, the wheel is theirs for the taking.They would not need to spend money buying the vehicles themselves, as the company will be able to share the vans between workers.

What to watch out for 

Though fleet insurance is a cheaper option than multi-vehicle insurance, it is only efficient if there are more than five vehicles within the company. The more vehicles, the more risk is posed to the company. Thus, it is better that all of the vehicles are under one policy.

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