What is a motor fleet insurance policy?

If you have three or more vehicles in your company’s name, then some insurance providers will consider that to be a fleet.

You may be thinking “so what?” in response to that but this definition is important and it might result in you saving money on your premium. Here’s how.

The company’s vehicles

For many companies, their fleet comprises quite diverse vehicle types.

Perhaps senior people in the organisation have a prestige company car as part of their pay and provisions package. Other personnel, such as salespeople, may have a company car because it is necessary for their day-to-day business activities. It’s equally possible that there are commercial vehicles in the fleet too. That might cover vans and trucks etc.

It doesn’t matter what type of vehicle it is, a company will typically wish to make sure that it is insured.

If it is ever used on the public highway then the law will require that it is covered by a minimum of unlimited third party liability. In the case of most companies though, that minimum level of protection will be deemed to be insufficient and something closer to comprehensive cover will be required.

Trying to coordinate individual policy details and renewal dates, across a range of vehicles and potentially a number of different insurance providers, can become an administrative nightmare for fleet managers and business owners alike.

It might typically be a whole lot easier to manage if the cover was a single policy with a sole cover provider.

The cost dimension

This also introduces the notion of commercial advantage.

It might be possible to discuss this in financial consultancy-like terms but it simply boils down to an earthy truth – buying more from a single source often gives you better commercial leverage. In this context what that means is, if you are placing all of your vehicle insurance business with a single cover provider, the chances are you would expect to see a more advantageous premium in total than might be the case if you were spreading your cover across different insurers.

The key benefits of fleet motor cover

So, having a single motor fleet insurance policy for all vehicles might typically offer a company two very significant advantages:

  • a reduced administrative overhead through dealing with a single insurance provider for all vehicles rather than multiple insurers;
  • the possibility of cost reduction overall.

What’s involved?

Fortunately, such cover exists. Typically, what’s called “motor fleet insurance” might offer:

  • one policy covering all of the vehicles;
  • any driver cover providing that they have a suitable licence;
  • a single annual renewal date;
  • cover for mixed fleets, including conventional cars and commercial vehicles.

As with any insurance policy there will be terms and conditions that need to be read carefully prior to making your purchasing decision. These conditions may well differ from one insurance provider to another.

In particular, you might see:

  • certain highly unusual or specialist vehicle categories that require individual cover. That might include things such as toxic waste carriers or similar;
  • possibly some policies may exclude, even under “any driver” provisions, drivers with certain forms of severe motoring convictions on their licence;
  • this sort of cover might not be applicable to hire and reward fleets such as taxis and minicabs. For this type of requirement, specialist policy types typically exist.

This brief note has really only scratched the surface of why motor fleet insurance might benefit your company. It’s probably worth finding out more if you have several vehicles and are finding the insurance costs and administrative overheads involved

What are the benefits of motor fleet insurance?

According to the Freight Transport Association’s (FTA) Logistics Report for 2016, a survey of business users revealed an expected 49% increase in road freight traffic during the year in question.

That growth is driven, of course, by the kind of strength in economic growth driven by the need for businesses to move supplies, finished products and employees from one place to another.

To participate in that market, businesses therefore need to keep vehicles on the road – and in most instances, several different types of vehicle to meet their business needs. In other words, a vehicle fleet.

Vehicle insurance

One of the essential, inescapable costs of keeping those vehicles on the road is motor insurance – because it is legally required and because it safeguard’s the investment made by the business against loss or damage to the vehicles.

However many vehicles you need to maintain in this way, the cost of insurance is likely to prove a significant overhead.

That’s where Alan Blunden Fleet Insurance has good news for you – in the shape of motor fleet insurance that is likely to come in at a significantly reduced cost to your insuring each of your vehicles separately.

Fleet insurance – the benefits

When you are insuring your vehicles separately, each single policy naturally comes with its own renewal date – so renewal dates for the vehicle fleet as a whole are likely to be spread the whole year round. They need to be closely monitored, of course, so that every vehicle remains protected against loss or damage and meets the legal requirement for insurance.

The monitoring and the management of multiple different motor insurance policies is both time-consuming and a drain on your administrative resources – a drain which may be avoided by arranging a single motor fleet insurance policy, which has just the one renewal date to schedule into your office diary each year.

The more general benefit and money-saving opportunity, of course, lies in the fact that insurers welcome the opportunity to insure more than one item at a time. The more vehicles in your motor fleet, the more individual items covered by your insurer and the bigger the discounts on the unit price of insurance for each vehicle.

Management of your motor fleet insurance is made easier by your still having the option to choose the level of cover appropriate to the vehicles you operate – third party, third party, fire and theft, or comprehensive cover.

Just as with regular, single vehicle motor insurance, fleet insurance also becomes progressively cheaper each year, thanks to the no claims bonuses which are typically available – and which might even be transferred from any existing no claims bonus you have earned on one of the vehicles included in your motor fleet.

If you are looking for still cheaper motor fleet insurance, you might want to consider accepting a higher voluntary excess – in addition to any compulsory excess in return for a discount on the premiums payable.