Almost without realising it, your business might be operating a commercial fleet of vehicles. It only takes your business to have more than two vehicles in use and you might benefit from the benefits that commercial fleet insurance may bring.
What is commercial fleet insurance?
Just as the name suggests commercial fleet insurance is a single insurance policy which covers the needs of a fleet of commercial vehicles.
What might not be so obvious, though, is that your fleet might number no more than two vehicles – but might just as easily run into tens or even hundreds of motor vehicles.
Whatever the total number of vehicles you are operating, the legal requirements for the insurance of each one, and the protection you are likely to want against the risk of accidental damage, may all be met by the same, single insurance policy.
What does commercial fleet insurance cover?
In terms of the protection it offers each individual vehicle, there is little to choose between the motor insurance you might choose for each one and the insurance you arrange for the entire fleet.
Levels of cover reflect the same choice between basic third party cover which is required by law, or third party, fire and theft or comprehensive cover to safeguard what is likely to have been a tidy business investment in your vehicles.
Fleet insurance also typically incorporates an excess payable on the first part of any successful claim you may need to make and also provides the opportunity for you to share a greater proportion of the risks by agreeing to an additional voluntary excess in order to reduce the amount you need to pay in insurance premiums.
If you do not make a claim on your commercial fleet insurance during the course of the year, this contributes to the no claims discount you are able to accumulate. Indeed, many of the insurers with whom we deal here at Alan Blunden Fleet Insurance allow you to transfer no claims discounts you may have earned under previous, individual insurance policies.
Who may it be suitable for?
If your business operates even the smallest fleet, commercial fleet insurance is likely to be suitable for two main, compelling reasons:
- the more vehicles you include within a single fleet insurance policy, the cheaper the insurance you are paying for each vehicle within that fleet – the cover offers a way for your business to cut one of its essential operating costs;
- when you are insuring each vehicle in the standard way, through individual insurance policies, you are going to have insurance renewal dates spread throughout the year;
- in order to avoid the risk of operating any vehicle illegally, without insurance cover, this means constant monitoring of the various renewal dates – and the administrative time, effort and cost which this involves;
- by arranging commercial fleet insurance, you have just a single renewal date for every vehicle, thus saving those administrative costs.
Commercial fleet insurance, therefore, is suitable for any business with two or more vehicles wanting to reduce the cost of motor insurance for the entire fleet and cutting some of the administrative burden which separate, individual insurance policies impose.