Introduction to fleet insurance

Motor fleet insurance might offer your organisation the chance to both simplify the management of your vehicle insurance and save money in the process.

If that sounds too good to be true, it isn’t! All that’s required is for you think about moving to fleet insurance as opposed to covering your vehicles individually.

Let’s look at some of the things that entails.

Motor fleet cover

The first question that might occur to you is, “do I actually have a motor fleet?”

Different insurance providers might respond in different ways to that question. Some may have a fairly significant threshold of perhaps 10 or more vehicles. That’s a pity because it might exclude numbers of smaller organisations from the benefits of fleet insurance.

Fortunately at Alan Blunden Insurance Brokers we provide fleet insurance for companies who have a threshold of just three or more vehicles.

What counts as a vehicle?

The good news is that some specialist fleet insurance policy providers are very flexible in their definitions here.

You don’t need to have one policy for your cars and another for your commercial vehicles such as vans etc. If you find an appropriate provider of such policies, you may find that they will be happy to offer “any vehicle” fleet cover even including plant machinery.

Of course, there may be some constraints on that in the sense that some highly unusual vehicles (e.g. hazardous materials transporters) might be excluded and will require their own specialist cover.

However in the majority of cases, you should be able to find that these flexible insurance specialists will be able to include all of the vehicles you normally consider to be part of your fleet.

The mileage dimension

One area where policies may differ significantly from one to another is that of mileage.

Some fleet insurance providers though might offer not only unlimited mileage incurred whilst engaged in business activities but also that involved in any personal and private use of the vehicles concerned. That might be a particularly significant benefit for fleets comprising company cars, which are taken home by employees and used during the evenings and weekends for private purposes.

Driver considerations

In terms of fleet insurance, there is no “one size fits all” in this respect and policies may differ. However, some might include cover for drivers of any age providing they have an appropriate licence for the vehicle they are driving. This will overcome the young driver restrictions faced by many fleet managers using individual policies.

One other point worth making when speaking of drivers is that some policies which are described as “any driver” policies may require special measures to be taken or even drivers to be excluded if they have particularly serious motoring convictions on their licence.

If one of your employees comes into this category, you should discuss this at the earliest opportunity with your insurer.

Spreading the cost

Of course, if you have consolidated all of your fleet insurance into a single policy, then it is going to make that individual premium seen high – even if it is offering significant cost savings overall versus an individual policy per vehicle approach.

The good news here is that some providers, recognizing the importance of fleet business, may offer monthly payments on the premium spread over the year.

Summary

There are many other potential attractions and advantages to companies who choose to go the fleet insurance route.

The limited space here doesn’t ready permit a full discussion of those. So, to find out more, it might be worthwhile speaking to a specialist provider of fleet insurance such as ourselves at Alan Blunden Insurance Brokers sooner rather than later.