If your business is dependent on the use of multiple vehicles, finding and setting up cover could prove challenging. Comparing fleet insurance at utilitysavingexpert.com allows you to easily compare multiple quotes within minutes from a whole range of leading providers. See how much you could be saving on your renewal today.
In this guide, we will cover the basics of fleet insurance, helping to give you a better understanding of what you need to know and look out for.
What is fleet insurance?
UK law states that it is a legal obligation to have your vehicle insured if you’re taking it on to the road. For business owners with multiple vehicles, it could be difficult to manage multiple policies and keep track of everything at the same time. There is a solution in the form of a fleet insurance policy.
This type of cover insures a fleet of vehicles. The vehicles can be registered in the name of a company, a director or partner of the company, helping you insure the vehicles under one policy for the entire business.
Over time, this will make mid-term adjustments, cancellations and renewals a lot easier, and could potentially save you a lot of money.
How many vehicles do I need for a fleet?
The number of vehicles that providers will class as a fleet can differ from company to company. However, most will provide guidelines which indicate a minimum and maximum number.
Some insurers will set the minimum requirement at two vehicles, however, only specialist providers will cover this amount. The maximum number that can be covered through a fleet insurance policy could be in the thousands.
What vehicles can be covered through fleet insurance?
This will be outlined by your provider, as not all fleet insurance policies are identical to one another. Most will offer flexibility in the types of vehicles that they will cover.
A range of business use types are covered, this will generally include the following: haulage, private hire, courier, in addition to other transportation requirements.
You will also have the option to include a number of different types of vehicles. If an insurer does have an ‘any vehicle policy’, remember to double check to see what vehicles will actually be covered. This is because there will always be some limitations and exclusions to the rule. Sometimes, vehicles such as excavators, forklifts and motorbikes may not be included.
Taxi businesses operate slightly differently, as they will require either public or private cover.
What are the advantages of fleet insurance?
One of the main advantages is the time saved on administration, this is because you will only have one renewal date to mark in the company’s calendar. Imagine the amount of time it would take if you had to renew several hundred policies individually each year.
Buying multiple policies from the same provider could also give you a big discount, this is similar to buying business equipment or stock in bulk.
Another added benefit is the ability to insure all drivers on every vehicle in the business, this is referred to as an ‘any driver policy’. This means that each employee will have access to all vehicles at any given moment, saving them time by not having to wait for a specific vehicle to be free.
What are the disadvantages of fleet insurance?
The insurance premium could be impacted negatively if even one single driver has been involved in multiple incidents in the past. However, claims are likely to take place, so this shouldn’t make too much of a difference.
If your business does have a driver who is accident-prone, it may be worth setting them up on a separate policy to save money. This rule will also apply to drivers with any previous convictions or penalties.
What types of fleet cover do I need to consider?
The types of fleet cover available is similar to that of standard car insurance. This includes the following:
• Third Party
• Third Party, Fire and Theft
How can I save money on cover?
Reducing risk factors will help to cut the costs of fleet cover. Electric and/or hybrid vehicles could lower premiums. This is because the engines on these vehicles will utilise less power in comparison to a standard vehicle, and are considered to be safer by insurers. These vehicles also have lower CO2 emissions.
Businesses that employ drivers who do not have any penalties or previous convictions, or those who are over the age of 25 can help lower premiums. For drivers who are below the age of 25, limiting their annual mileage, only allowing them to drive during daylight hours, or accompanied by another driver can also help to reduce costs.
Enrolling drivers on a training programme will help them recognise road hazards and ultimately improve road safety by reducing bad driving habits. Courses cover areas such as driving in adverse weather conditions, hazard perception and even improving fuel efficiency.
Regular maintenance and service of vehicles in the fleet is also of utmost importance. Checking tyre pressure, engine oil, brakes and updating service records regularly will also ensure vehicles remain operational and in good condition.
Another way to save money is to ask drivers to pay the excess in the event that an incident takes place. Placing this responsibility on to the employee will actively encourage safe driving. Some businesses may even offer incentives for drivers who do not have to make a claim for a specific period.
Security is another important consideration, vehicle alarms, immobilisers, dashboard cameras all help to lower costs. Locking and storing vehicles in a safe and secure environment overnight could prevent damage and theft. Dashboard cameras can prove to be invaluable, in the event of an accident taking place, as they will record what took place. This data can then be sent to both the police and the insurer for review.
A telematics device, commonly referred to as a black box can also help you save money. The device will monitor driving behaviour and insurers can recalculate the premium according to how safe each employee drives.
In conclusion, there are many different ways for businesses to save money on fleet insurance. Comparing cover from a whole range of leading providers through the use of an online comparison website will help greatly. It’s quick and easy to find cheap cover within minutes.
Not all businesses can make use of the tips listed above as the nature and needs of each business varies. However, this should still give you a general understanding on the rating factors used by insurance companies to calculate the cost of a fleet insurance policy.
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