What Is Fleet Insurance?

What is a fleet insurance policy?

Fleet insurance is a type of insurance policy that covers all vehicles in a fleet. Instead of insuring your company vehicles individually, which can be very costly, you can potentially save your company thousands of pounds by creating a comprehensive, bespoke fleet insurance policy instead.

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 can offer EU cover, personal belonging protection, HGV insurance, fleet breakdown cover, cover for trailers and more.

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, you can get a free online quote today.

How is fleet insurance calculated?

Fleet insurance is calculated depending on several factors. These can include:

• The size and average age of the fleet;
• Who drives specific cars;
• The overall safety record of the fleet team. 

It also considers the number of incidents a fleet has been involved in over the years and the total overall claims that are outstanding. The fewer incidents per year and fewer outstanding claims will typically lean in your favour for better premiums. 

How does fleet insurance work?

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. Our team of experts can help you with this and will always be willing to talk you through your options. 

How many vehicles count as a fleet 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 old do you have to be to get fleet insurance?

There are no age restrictions for fleet insurance if you hold a valid licence, however, there are some conditions that may restrict drivers of certain ages.

Younger drivers, aged 25 and below, will typically have an increased excess applicable whilst driving. If you have a younger team, our experts will be able to advise you on your best options available to suit your business needs. 

What does fleet insurance cover?

With fully comprehensive fleet insurance, you will be provided with cover for your vehicles and the drivers if a vehicle is involved in an accident or stolen. It will also cover the costs of damage to other cars or property if your vehicle was involved in an accident and it was your driver’s fault. 

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 that 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
• 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 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 lots of experience in the field and also has a proven success rate. Many business owners will often 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. 

Advantages of fleet insurance

• Discounts: By purchasing fleet insurance, it will typically mean you receive quantity-based discounts. This means the more vehicles you add, the higher per vehicle discount you’re likely to receive. If you have 5 or more vehicles, fleet insurance can be extremely cost effective. 

• No claims discount: This can be spread throughout the fleet, which helps you save money.

• Any driver options: If your company has a high turnover of staff, any driver insurance helps you avoid the trouble of establishing who and who isn’t insured on each vehicle. As long as your drivers meet the requirements of the policy, they will be able to drive any insured vehicle. 

• Simple admin: Fleet insurance allows you to keep all your vehicles insured through one policy, meaning you’ll know exactly who to contact if one of your vehicles was to be involved in an accident.

To get cheaper fleet insurance you need to be in control of your claims. You can never eradicate claims completely but if you are unlucky enough to have a claim then it must be reported to your insurers immediately, even a 24 hour delay in reporting can lead to significantly higher claims costs and therefore higher premiums. 

If a claim isn’t reported promptly it gives chance for accident management companies to approach any third party and once they get hold of a claim the costs will spiral. It’s much better if your insurer handles the claim for both parties. 

Other ways of reducing your premiums include; restricting drivers to higher age groups, keeping the insurer updated with overnight postcodes for where your vehicles are kept, and by opting for higher excesses. 

Also, some insurers give discounts if you regularly check your drivers licences, if you have a company driver handbook and if your drivers have had professional driver training. 

Finally, it goes without saying that your fleet insurance should be regularly put to tender to ensure you are not paying over the odds, this is something that we offer our clients as standard.

Questions fleet insurers may ask

Fleet insurers typically ask a set of questions about your fleet and the policy you are looking for. This could include questions such as:

• How many vehicles are in your fleet?
• What types of vehicles are in your fleet?
• Are you fleet rated?
• What is the nature of your business?
• What is your renewal date?
• Who is your current insurer?
• What is your annual premium?
• Personal details

FAQs about Fleet Insurance

How does fleet insurance work for taxis?

Just like any other fleet insurance, a fleet of taxis can be insured as long as you have 2 or more in your fleet used for taxi purposes. There is no limit to the number of vehicles you can add to a taxi fleet policy. 

You can add or remove cars and drivers as you wish whilst being covered by a fully comprehensive policy. We also offer public hire insurance, public and employers liability and passenger and luggage effects cover. 

How does fleet van insurance work?

Just like any other fleet insurance, a fleet of vans can be insured as long as you have 2 or more in your fleet. There is no limit to the number of vehicles you can add to a van fleet policy.

Fleet van insurance covers small, medium and large vans, as well as pick-up vans, light vans, box vans and tippers.  

What happens once I have bought a fleet insurance policy?

Once you have purchased a fleet insurance policy with us we will ensure the Motor Insurance Database (MID) is updated with your vehicle schedule. Our claims manager will then send you a key fob for each vehicle that you own, this includes our claims number to make it easy for you to report any claims. We also have a claims reporting App which is really simple to use to support the efficiency of reporting and managing any claims. Next we will request your new documents from your insurer and we will check them for errors before forwarding them on to you.

Can I pay for my fleet insurance in instalments?

We have many different payment options available including payment by instalments via our in house finance provider and also via insurers’ own direct debit facility. 

Should I choose an Any Driver or Named Driver policy?

When taking out fleet insurance, you can choose to have drivers drive any of your vehicles, or having named drivers on each vehicle. Choosing between the two simply depends on your personal preferences.

Any Driver policies may have higher premiums but will offer the most flexibility. They also tend to be better for larger companies that may struggle to track specific vehicle usage. Having young or convicted drivers on the premium can however, raise the premium costs. 

For smaller companies, it may make more sense to have Named Drivers, and simply assign vehicles to drivers. This is typically the most cost effective option.

Can there be private use cover on fleet insurance?

Many vehicles included in a fleet policy are also used in a private capacity by company employees and their families. 

If a vehicle in your fleet is used this way, you must ensure they are covered by your insurance policy as it is typically excluded on standard fleet policies. 

Does fleet insurance cover my drivers?

Yes, fleet insurance does cover your drivers. 

Drivers are covered under one policy rather than individually, and you can insure your drivers on one vehicle, or on their own separate ones as a named driver.

Start a Fleet Insurance Policy

Can I qualify for a no-claims discount?

If you use a fleet vehicle under any driver policy, unfortunately you will not be able to build up any no-claims bonuses or discounts. 

Your driving experience can be taken into account when calculating costs for an individual policy. 

However, if you’re listed as the main driver of a vehicle and use it for both work and personal use, you could earn a no-claims discount., as long as the policy covers both uses. 

Is vehicle breakdown cover included?

Breakdown cover isn’t typically included as standard on most fleet insurance policies, however, we do offer fleet breakdown recovery in addition to any fleet insurance. This will be a separate policy, but it makes it much easier for fleet managers or business owners to manage any vehicle issues with the same insurance broker.

We work with a number of trusted and established providers who can offer you the best price possible, as well as tailoring the policy to suit your specific fleet needs. 

Fleet Insurance from FleetCover

No matter what your fleet insurance query is, here at FleetCover we can provide you with expert help from our team of professionals. 

For more information, or to get a quote, contact us today via email at info@wcib.co.uk or give us a call on 0345 224 5329.