What Is Fleet Insurance?

What is Fleet Insurance?

We all know how important it is to insure your vehicles. But when you have multiple vehicles in your business with different insurance policies, things can get complicated.


If you own or are part of a business that uses two or more vehicles, you should understand exactly what fleet insurance is and does for your business. 


Fleet insurance is an insurance policy that covers a fleet of vehicles. Instead of insuring your company vehicles individually, which can be very costly, you can potentially save your company thousands of pounds by, instead, using a fleet insurance policy.


Not only does fleet insurance save your business money but it also gives you full flexibility and control when it comes to insuring your vehicles. Insuring your vehicles under one policy will save you a lot of time and give you more opportunity to concentrate on other important areas of your business. 


A fleet insurance policy will cover your vehicles as a normal insurance policy would do for your own car. Your insurance policy will differ depending on which fleet insurance company you go with. For example, at Fleetcover we also offer EU cover, personal belonging protection, HGV insurance, Fleet breakdown cover and cover for trailers.


With fleet insurance, you can choose to cover any driver to any vehicle, alternatively, you can also insure specific drivers to specific vehicles. Great if you have pool cars!

If you’re looking for fleet insurance cover at the minute you can get a quote by clicking here.

How does fleet insurance work?


You may be thinking to yourself, “fleet insurance sounds great, I need it now!”. While there are many benefits to fleet insurance, it’s important to first understand how the process works. 


Usually, a new fleet policy will start with 2 vehicles with the opportunity to add more vehicles down the line. There are a few different types of classes that you should be aware of if you are considering fleet insurance.


Social, Domestic and Pleasure Use – This type of insurance would allow you to commute to and from one permanent place of work. In this instance, a business car policy wouldn’t be suitable and you would be advised to insure your vehicles individually to get the best premium.

Class 1 Business Use – Class 1 Business use allows you to use a vehicle for your business or profession and allows you to travel to more than one permanent place of work. If you are an area manager, this may be appropriate for you. 

Class 2 Business Use – Class 2 Business use is very similar to Class 1 in the way that you can use a vehicle for your business or profession to travel to more than one permanent place of work. The main difference with Class 2 Business use is that it also applies to other drivers that are named on the policy too. 

Class 3 Business Use – This type of insurance would provide the largest cover available, allowing commercial travel including the collection of money. 

It’s really important to select the correct policy type to suit your business and to efficiently manage your fleet of vehicles. 

What is fleet insurance?

How much does fleet insurance cost?

The cost of fleet insurance is normally affected by a number of different factors. One of the main factors is the insurance broker you choose to go with. 


Having a fleet insurance broker means you have a direct representative in the insurance market and the way your risk is presented to the market will have a direct effect on the premium you are quoted.


A good fleet insurance broker will also help you purchase the correct cover for your specific needs, this is something very important if you come to make a claim. 


Another factor which can affect your fleet insurance premium is your claims history and experience. Other factors such as occupation, location, driver age profile, vehicle types and use of vehicles are also big factors when it comes to working out a premium cost.


As there is no one-size-fits-all approach to fleet insurance, your fleet insurance price is going to be individual to you and your business circumstances. 


How many vehicles for fleet insurance?

In terms of vehicles, fleet insurance can vary depending on the insurance company. Typically, businesses who have more than two vehicles will be able to get fleet insurance. 


However, there are some companies out there who would require your business to have at least five vehicles to have fleet insurance. 


If you are looking for the most cost-effective solution, having at least three vehicles on a policy is a safe bet.


How to get fleet insurance

The best way to go about getting fleet insurance is to speak to an experienced fleet insurance broker! 


It’s crucial to go with a broker that has had lots of experience in the field and also has a proven success rate. Many business owners will oftentimes be so busy that they do not have the time to look into the ins and outs of insurance. 


This is where an established fleet insurance broker comes in! 


At Fleetcover, we work with the UK’s largest Insurance providers for fleets to get you an instant, hassle-free policy proposal. 


Having access to a carefully selected panel of over 20 different insurers means that we can provide you with a competitively priced, comprehensive insurance policy. 


For more information, please contact us below!

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