If you’re thinking about ways of trying to both improve your fleet vehicles’ cover and perhaps reduce your costs at the same time, you might be drawn to fleet insurance.
If that’s the case, the following tips might prove useful.
Don’t make pessimistic assumptions
When people first talk about fleet insurance, it’s not unusual to hear some incorrect and negative assumptions being voiced.
They might include:
- “it’s only for big fleets with lots of vehicles”;
- “you can’t cover trucks and cars on one policy”;
- “the mileage restrictions are strict”;
- “younger drivers will be excluded”; etc.
In fact, none of these need be the case at all, providing you’re dealing with a specialist provider of insurance cover for fleets. We offer flexible fleet insurance policies that can be tailor made to meet all the above situations and many more like them.
The key tip here is – don’t give up before you’ve even started and assume that your fleet somehow won’t fit this type of policy.
Rationalise or eliminate odd high risks
All insurance policies, including those providing fleet cover, will calculate their premium based upon the underwriter’s assessment of the risks involved.
Your costs may be unnecessarily inflated by rare and infrequent risks, for example, such as if you occasionally send a vehicle overland to Russia or parts of the Middle East. It’s worth looking hard at the economics involved and rather than taking blanket fleet cover for such, perhaps take out individual trip cover instead.
Look for in-the-package deals
Fleet insurance typically might come with a form of standard cover to which you might add options – at cost of course.
Let’s use mileage as an example. If the standard policy offering and its price has a stated mileage ceiling, you may be able to upgrade to unlimited mileage for an extra fee. The same might apply for younger drivers and mixed vehicle type cover etc.
That’s fine but keep in mind that typically, a policy offering all these things as part of its standard pricing model, might be more cost-effective in the longer term than an apparently lower-cost option that requires you to add all these things in as optional extras.
Think carefully about drivers with serious motoring convictions
Some policies might refuse cover altogether for drivers who carry serious motoring convictions on their record.
Those policies that might offer such cover may also typically charge a significantly increased special premium for doing so.
Segment business and hire-and-reward uses
Although relatively rare, some fleets might include both company cars and vehicles used for hire-and-reward purposes. That latter category might include things such as minicabs, coaches, taxis and shuttle bus transport etc.
Insurers tend to see professional business use fleets (e.g. vans, trucks and company cars) to be quite different in risk terms, to those associated with public transport. It might be sensible to consider, in insurance terms, segmenting your fleet in order to find a cost-effective policy solution.
Talk to a specialist
Fleet insurance is a highly specialised field. Not all insurance providers have an extensive background in this domain.
You may find a more rounded and appropriate solution if you’re dealing with someone who does have such a background in fleet insurance. So why not give us a call today on 01702 826060? Our team are ready and waiting for your call.