Commercial fleet insurance – FAQs

As all fleet managers know, running a commercial fleet can’t be described as being “easy”!

Here are some of the FAQs we regularly receive on this subject.

Do you offer fleet management insurance?

That’s easy – ‘yes’! Whether you have a large fleet or just three vehicles, we can find you cost-effective, comprehensive cover for your business cars and vans.

Can you find us cheap fleet insurance?

We’d strongly recommend that you approach this from the viewpoint of looking for suitable cover for your business fleet needs rather than just the cheapest policy on the market.

While we really do understand the cost-containment pressures associated with fleet management today, we can’t stress strongly enough how important it is to have suitable and cost-effective cover rather than just ‘cheap’.

Surely all fleet insurance only varies in terms of the price?

No, that’s typically not the case.

Policies can vary hugely and some may be far more suitable for one type of fleet operation than another. There isn’t space here to go into huge amounts of detail but suffice it to say, this is where Alan Blunden Insurance Brokers operate.

You don’t need to turn yourself into an insurance expert. Equally, you won’t want to start exploring those things your policy doesn’t cover only once you’re trying to make a claim!

We will analyse and match your business and commercial fleet insurance requirements against a range of options and then make recommendations relating to suitable policies. That’s our core business.

Isn’t it cheaper to do things vehicle by vehicle?

Typically, no, it isn’t and you might be missing opportunities in trying to do so.

There are two main areas you might benefit via savings if thinking about fleet versus individual vehicle policies:

  • economies of scale. It’s often more cost-effective to insure several vehicles on a fleet policy rather than individually because you’re maximising your purchasing power with a single insurer;
  • the administration overhead for you is likely to be easier. You have one policy to pay attention to and one insurance provider to manage a relationship with. It’s a lot easier than have a filing cabinet full of policy details and different renewal dates/insurers’ details!

What is the ‘excess’ mentioned on some policy advertisements? 

Almost all insurance policies, irrespective of their nature, carry what’s called ‘excess’. Sometimes that’s also described by some as the “first part of any claim”. This isn’t just an issue for fleet insurance – you’ll typically see the same thing on say household policies.

What it means is that it’s a sum of money that the policyholder will be expected to pay towards the cost of any future claim. This is sometimes best illustrated with some figures by way of example.

Let’s assume the excess is mandatory and set at £500:

  • if your claim value is £450, you’ll have to pay it all and the insurer will contribute nothing;
  • if your claim value is say £900, you will pay £500 of it and the insurer will pay £400.

Why does the excess exist?

Typically, most vehicle accidents are very minor and result in what might be called low-value damage. The excess is the insurance industry’s way of trying to keep a multitude of small claims ‘off the books’ for three reasons:

  • to reduce the overall claims values per annum, thereby helping them to keep premiums down;
  • to avoid hugely increasing their administrative overhead with tiny claims (thereby also keeping their costs and your premiums down);

In fact, you may be able to reduce your premium further by electing to accept a higher excess on your policy!