For businesses managing multiple vehicles, fleet insurance is a smart choice. It streamlines your insurance process by consolidating all vehicles under a single, manageable policy with one renewal date. Additionally, many fleet policies offer flexible driving options, making it easier to adjust driver assignments when needed.
Navigating fleet insurance for the first time can be daunting. To assist you, we’ve created a comprehensive beginner’s guide filled with FAQs to help you embark on your fleet insurance journey with confidence.
What is a fleet policy?
A business fleet policy provides flexible coverage for multiple vehicles under a single plan, streamlining management and potentially reducing costs compared to individual policies.
What are the benefits of a fleet policy?
Fleet policies offer businesses a more convenient and adaptable alternative to insuring individual vehicles. For instance, if you need to update your address, you only have to notify your insurer once, rather than contacting multiple providers. This approach streamlines your administrative tasks, providing a single set of policy documents and one renewal date to manage.
Additionally, the driver coverage offers exceptional flexibility, helping you to seamlessly change drivers whenever necessary.
Will a fleet policy save me money?
The cost of insuring multiple vehicles can vary based on several factors. By insuring them together, you may benefit from economies of scale, with potential discounts for each vehicle through no claims bonuses or Confirmed Claims Experience (CCE).
However, a fleet policy might offer more benefits than a private car policy, such as flexible driving restrictions, which could influence the price. Consult your insurance broker for a no-obligation quote to explore your options.
I only have a small fleet – is that covered?
We can help source fleet insurance solutions for various needs, including both minifleet and single vehicle fleet options.
What vehicles can I add to my policy?
Fleet insurance provides the flexibility to cover various vehicle types, from private cars to commercial vehicles like vans and trucks. It’s crucial to note that coverage applies only to vehicles owned by the policyholder or registered under the company name. Vehicles owned by employees are not eligible for company insurance due to the absence of ‘insurable interest’.
What vehicle use is covered by a fleet policy?
In addition to personal and business use, your vehicle can be insured for transporting goods. For instance, a scaffolder transporting their own equipment, such as poles and planks, would require coverage for carrying their own goods. Similarly, hauliers or couriers, who are compensated for moving goods from one location to another, would need insurance for carrying goods for hire and reward.
What types of cover can I get on my fleet vehicles?
Fleet policies continue to offer the traditional three levels of coverage, with fully comprehensive coverage being the top recommendation:
- Comprehensive
- Third party, fire and theft
- Third party
Who can drive the vehicles?
Many fleet policies offer an ‘any driver’ option, simplifying the process of managing driver changes and substitutions during absences. This feature is particularly beneficial for businesses with frequent driver turnover or a large pool of potential drivers.
You can often set age requirements for each vehicle, such as drivers over 21, 25, or 30, with more experienced drivers typically resulting in lower premiums. However, be mindful of specific exclusions, such as the need for drivers to have at least 12 months of driving experience on some policies.
What if my driver has motoring convictions?
When obtaining a quote, it’s crucial to inform your broker of any motoring convictions for directors and drivers within the past 5 years, though some insurers may consider a shorter period, such as 3 years. While certain insurers may not need to note drivers under a certain amount of points, others require full disclosure. Serious motoring convictions might not be covered by your policy, so full transparency is essential to prevent any unexpected issues during a claim.
For those with a fleet policy, effective driver management is key. Establish clear protocols for tracking and reporting motoring convictions as they occur. It’s advisable to maintain up-to-date driver licenses on file and conduct regular DVLA checks to ensure all information is accurately reported to your insurer.
Can I use someone else’s no claims bonus?
No claims bonus must be earned by an active company director registered with Companies House at the start of the policy, or under the limited company’s name. For sole traders or partnerships, ensure the name aligns with the policyholder’s name.
Can I transfer no claims bonus to my new vehicle?
Transferring your no claims bonus is typically straightforward, though insurers might ask for extra documentation. Ensure your bonus was earned on a similar vehicle that was sold or scrapped before your policy begins and earned within two years of the start date.
Will I get no claims bonus at the end of my policy?
When you take up a fleet policy, you start accumulating Confirmed Claims Experience (CCE) instead of no claims bonus, except for single vehicle fleets. Your CCE can be provided a few weeks before renewal, once we have had the opportunity to provide you with a renewal invite, allowing you to explore alternative quotes.
Can I include breakdown?
Certain insurers provide optional breakdown coverage for your fleet vehicles. If this isn’t available, we can arrange a separate policy if required.
So there you have it – we’ve covered the basic details to help you determine if a fleet policy could be right for your business. For personalised advice, our knowledgeable insurance advisors are ready to assist. Contact us today if you have any queries or to receive a complimentary, no-obligation quote.
