Should you Combine Fleet Breakdown Cover with Insurance?
Business breakdown cover is an essential for many fleets up and down the country, but many businesses don’t consider combining breakdown cover with their fleet insurance policies.Get a quote from an insurance professional today
0345 224 5329Business breakdown cover is an essential for many fleets up and down the country, but many businesses don’t consider combining breakdown cover with their fleet insurance policies.
Whether you have a small fleet of cars and vans, or you own specialist equipment, our knowledgeable team at FleetCover can help you find the right level of coverage for your business.
What is business breakdown cover?
Business breakdown cover is a type of motor insurance that protects a businesses commercial vehicles from breakdowns, including cars, vans and minibuses.
A standard breakdown policy will usually only cover one vehicle that is used for personal use, whereas with business breakdown cover, you can either cover one or multiple business vehicles under one policy.
How does fleet insurance work?
Fleet insurance is a type of motor insurance that covers multiple business vehicles under one policy.
Instead of insuring the vehicles in your company individually, fleet insurance works by having all of your vehicles insured under one comprehensive insurance policy, helping your business to potentially save thousands of pounds each year.
Comprehensive fleet insurance with breakdown cover
Comprehensive fleet insurance policies that include breakdown cover is ideal for businesses that rely heavily on their fleet and need support in case of potential vehicle breakdowns.
Pros of comprehensive fleet insurance with breakdown cover:
- Cost efficient – Having both fleet insurance and breakdown cover under one policy can help to reduce overall insurance costs compared to if they were purchased through separate insurers. Some insurance providers may also offer discounts, making it an ideal choice for those with more than one vehicle.
- Legal and health compliant – Having breakdown cover included in your comprehensive fleet insurance ensures your business is compliant with UK laws, since breakdown cover can help address potential issues in case of a breakdown that would otherwise leave drivers stranded.
- Customisable coverage – Combining your breakdown cover with your comprehensive fleet insurance policy allows you to tailor the insurance and breakdown cover based on the size of your fleet and the type of vehicles you have.
Cons of Comprehensive fleet insurance with breakdown cover:
- Paying for more than what you need – If your fleet mainly operates in low risk areas, such as in small cities, a comprehensive policy that includes breakdown cover might be too much for what you need. This can cause you to be paying for more than what you actually need.
- Overall premium increases if your fleet changes – As your fleet grows or you purchase vehicles that are higher risk, your overall premiums could increase. This means you could be paying more for a comprehensive policy based on just one high-risk vehicle in your fleet.
Fleet breakdown cover and fleet insurance as separate policies
For some businesses, it can be financially wiser to have two separate policies rather than one combined policy, especially if you have a variety of different vehicles in your fleet at different risk levels.
Pros of fleet insurance and breakdown cover as separate policies:
- Tailored coverage – With separate policies, you can choose the best provider for each type of cover. For example, you may choose to opt out of a specific breakdown provider that offers specialist services that your fleet simply doesn’t need.
- Costs management – Separate policies mean you only pay for the exact amount of coverage you need and you can avoid paying for features that may be redundant on some of your vehicles. You also have the ability to shop around for the best deal on each policy.
- Specialised providers – Some breakdown recovery providers specialise in recovery services and roadside assistance for unconventional vehicles. This can be particularly beneficial if your fleet operates in areas that are hard to access or you have a high likelihood of specific vehicles breaking down.
Cons of fleet insurance and breakdown cover as separate policies:
- Multiple policies to manage – Handling multiple policies means you need to keep track of different renewal dates, terms and conditions for both your fleet insurance and the breakdown cover. This can be time-consuming and a lot more complex compared to managing just one policy.
- Possibility of higher costs – With separate policies, you may end up paying more overall due to no bundle discounts. You may end up also paying more in excess fees for each service separately.
- Inconsistent claims processes – When a vehicle breaks down, you will have to deal with both the insurance provider and the breakdown cover provider. This can cause confusion and delays, especially if the two companies have different claims processes.
Is it cheaper to combine fleet insurance and breakdown cover?
Yes, it is typically cheaper to combine your policies into one joint policy, especially with fleet insurance and breakdown cover.
However, as with any type of insurance policy, the costs will vary depending on:
- The size of your fleet
- The types of vehicles you have
- The level of coverage
- The insurance provider you choose
Should I get comprehensive fleet insurance and breakdown cover?
Whether you should get comprehensive fleet insurance and breakdown cover in one policy really depends on the needs of your business.
If you have a large fleet with a mix of cars, vans and trucks, comprehensive policies can save you a considerable amount of time and money, as well as helping to streamline management processes. However, if you have specialist pieces of equipment with only a few cars in your fleet, then it may be more cost effective to have separate policies.
If you’re not sure which is the best option for you, our team at FleetCover can help.
We have years of experience helping businesses of all shapes and sizes find the right level of insurance, and we always take the time to understand your specific administrative needs. To find out more about comprehensive fleet insurance with breakdown cover, get in touch with our friendly team today.