From time to time, we like to share our responses to some of the FAQs we encounter here at Alan Blunden Insurance Brokers.
This time, we’re looking at business fleet insurance.
Is it always best to have a single fleet policy?
We’re never entirely comfortable with the word “always”!
Broadly speaking, yes, an integrated fleet insurance policy may be typically advantageous for a number of reasons. There might though, in some cases, be exceptions.
What we’d prefer to do is to discuss the details of your fleet with you and then we’ll be better positioned to advise further.
Can I cover drivers who have motoring endorsements?
Today these are more commonly called “penalty points” but yes, you typically can cover such drivers.
Of course, in some cases that might increase your premium. In certain cases, an insurer may decline to cover drivers who have certain severe categories of conviction on their licence.
Will my insurance cover me for vehicles leaving the UK?
Such cover is usually available without problem and some fleet insurance policies might include it as standard.
That assumes that we’re speaking of EU countries or those Western European countries that although not members, are closely affiliated to the EU – such as Norway and Switzerland. If you’re planning to go further afield, such as the Middle East or Russia, special additional cover may be required.
Note that it may be more difficult to obtain cover for certain countries designed as being war zones or where the security situation is considered highly dangerous/unstable.
Is there a maximum number of vans I can insure?
With vans accounting for more than a fifth of all traffic on UK roads, there is little doubt that many will be fleet vans and some fleets may run into hundreds of such vehicles.
This shouldn’t be a problem for you.
Can I get discounts?
Insurers like to see evidence that the policyholder is behaving responsibly and doing all they can to reduce the risks of theft and accidents etc. They might offer incentives, in the form of reduced premiums, for such behaviours.
Examples might include the use of additional security devices, secure and patrolled overnight parking arrangements etc.
In some cases, you might also be able to see reduced premiums if you opt for a higher excess.
What exactly is the “excess”?
This is an amount of money that you agree to pay as the first part of any future successful claim.
So, if you have a claim of £400 and there is a £100 excess, the amount you’d receive upon settlement would be £300.
Insurance providers use this to avoid lot of very small claims, thereby keeping their costs and premiums down.
A certain minimum excess is typically mandatory on an insurance policy of almost all types. Sometimes though, the policy provider might offer you the option to select a higher excess and in return, you’ll benefit from a lower premium.
In this case, you do need to make sure that any higher excess amount will be affordable to you in the event of a claim.
Do I have to insure leased vehicles?
Certainly a leased vehicle will need to be insured by someone – at least to the minimum legally required levels of third party liability.
It’s very difficult to generalise here because there are now so many different options and types of leasing available. In general terms, the leasing company’s price typically won’t include insurance though they may be keen to offer it to you as an optional extra.
It is possible to obtain fleet insurance if you your fleet consists in whole or in part of leased vehicles. You will though need to make sure that this is clearly highlighted to us in advance.