What is Fleet Insurance?

Fleet insurance makes it possible for companies to insure multiple vehicles on a single insurance policy. You can register the cars in your name, the company name or a partner.

Staying up-to-date with the policy features and renewal dates of company vehicles can be stressful. That’s where fleet insurance comes in. Besides protecting your cars and drivers, it can save on administration.

two people with paper work defining a fleet insurance and fleet policy and asking "what is fleet insurance"

This quick guide will get you going on everything you need to know about fleet insurance.

What is Fleet Insurance and Why Would You Buy It?

Fleet insurance is a type of vehicle insurance policy that covers two or more commercial vehicles. It is specially designed for businesses that rely on company-owned vehicles to either run their daily operations or for the purpose of issuing them to their employees.

Read more: Guide To Tax & Insurance Of Business Cars

Having a fleet policy helps you remain legally compliant, thus avoiding the risk of leaving the driver or the company vehicle accidentally uninsured. One of the benefits of fleet insurance is that it has a single payment date/s for each insured vehicle and one renewal date.

In this way you’ll have an easy time managing a high number of company vehicles while reducing your time spent on admin. On top of that, fleet insurance saves your company a significant amount of money.

Unlike purchasing separate policies for each company vehicle from different insurers, bulk buying insurance enables you to receive substantial discounts.

What Does Fleet Insurance Cover?

Generally, fleet insurance comes with similar coverage to a vehicle policy and additional features for business purposes. Depending on the type of cover you choose, the fleet policy can cover claims for:

piles of paperwork asking what is fleet insurance policy
  • Breakdown
  • Trailer liability
  • Goods in transit cover
  • Employer liability cover
  • Public liability
  • Courtesy car extension

Most insurance companies usually provide these features either as optional extras or as standard. The type of cover that appears on the insurance policy depends on the level of insurance you choose.

Read more: A Guide To Fleet Vehicle Insurance

Types of Fleet Vehicle Insurance

Typically, there are three types of fleet vehicle insurance. Here is an overview of each of them and their benefits.

1. Third-party only

This is the minimum level of cover accepted by law in the UK. It can cover you against third-party injury or damage in case of an accident deemed your fault. Besides injuries to other drivers or public members caused by an insured vehicle, third-party claims can relate to property or vehicle damage.

A Third-party only fleet policy is the cheapest level of insurance out there. However, keep in mind that it won’t cover your drivers if they sustain injuries during an accident or bear the cost of damage to your insured vehicles. This means that you will be liable for the repair costs.

Fire extinguisher

2. Third-Party, Fire and Theft

Mostly abbreviated to TPFT, third-party, fire, and theft can protect you against damage to third parties and their property in an accident. What’s more, it can protect you against damages incurred from fire outbreaks and claims arising due to theft or attempted theft.

If the company vehicle suffers damage such as a stolen radio due to an attempted robbery, the fleet policy can pay for the repairs. And should the car be stolen, there’s nothing to worry about since the fleet insurance can replace it.

It’s not mandatory by law to take this policy, but it can save your company a lot of money when it comes to vehicle replacement and expensive repairs.

3. Fully Comprehensive

Car fleet insurance policy

A fully comprehensive cover is the highest level of cover and the most expensive fleet policy on the market. Besides protecting you against fire, theft and third-party injury, it can cover damage to the company vehicles as well as the drivers.

If an insured driver causes an accident, this policy can still pay for the repair costs or even replace the vehicle if it is damaged beyond repair. Additionally, fully comprehensive cover can payout when you don’t know the person at fault. Isn’t that fantastic?

This includes instances where your employee returns to the car only to find it damaged and the culprit nowhere to be seen. This type of fleet policy gives you peace of mind knowing that it can account for repairs and replacements in many instances. It also includes extra features like the legal cover as standard —though this varies depending on the provider.

white fleet vehicle with fleet insurance policy

How Can You Reduce Your Premiums?

Just like any other type of car insurance, fleet vehicle insurance is costly. But you can always land a good deal by ensuring you’ve cultivated a strong safety culture within your company.

One way of doing this is with a fleet GPS tracking system, such as Vimcar’s Fleet Geo. Many insurers offer reduced prices to fleets with telematics systems. By investing in a fleet tracking system, you can see the vehicles’ real-time location, be notified of theft attempts, and much more. Such valuable data can push your insurer to lower your premiums.

What is a fleet insurance application?

To apply for fleet insurance coverage, you’ll have to shop around for providers who specialize either in commercial insurance or vehicle insurance. Remember, always establish core features that your company needs as standard.

That way, you’ll be able to find a policy that will suit you best. Since fleet vehicle insurance is extremely complex, it’s wise to reach out to a competent insurance broker to help you apply for one.

If you are looking for ways to imrpove your fleet ROI contact us today to learn if our fleet tracking system can save you money on your fleet vehicle insurance.

Fleet cars covered by car fleet insurance policies

How Many Cars do You Need for a Fleet Insurance?

Fleet insurance covers multiple commercial vehicles. The term “fleet” means a group of between 2-500 vehicles. However, you should check with your insurer to know the minimum number of vehicles you need to be eligible for this insurance policy. For your vehicles to be insured, you need to use them for the company’s daily operations and not any other operations.

Can Anyone Drive on Fleet Insurance?

Fleet companies must give details about their drivers to the insurer. Regarding who should drive on fleet insurance, fleet policy insurance covers two types of drivers.

  • Named driver
  • Any driver
  1. Named Driver Insurance Policy

The insurer will require details of the company’s drivers operating the fleet vehicles. The fleet company should specify the vehicles that each driver might operate.

  1. Any Driver Insurance Policy

The insurer doesn’t know about the driver behind the wheel in this policy. In case of accidents, the insurer may want to know about your driver, which might be expensive.

A car and coins representing expensive car fleet insurance

Is Fleet Insurance Expensive?

Fleet insurance is often cheaper and convenient for a company that deals with multiple vehicles. Instead of insuring every individual vehicle, you insure your commercial vehicles under one insurance policy. You may end up saving a substantial amount when it comes to insurance premiums. In addition, when you cultivate a positive culture in your company, you can land good deals from your insurance company. You may stand a chance to negotiate for lower prices with your insurer.

FAQs About Car Fleet Insurance

Employees discussing car fleet insurance policies

Car fleet insurance is a smart way to insure your vehicles under one policy. You can cover the cars under your name, company or a director. You get to stay up to date on the insurance covers of all your vehicles. The best part: you never miss any driver or truck when renewing your policy.

Here are some answers to FAQs about car fleet insurance:

1. Why do you need fleet insurance?

Renewing the insurance cover for every one of your commercial vehicles is tiring and time-consuming. Instead, you can go for a car fleet insurance policy that lets you cover two or more commercial vehicles under one cover. Thereby, you save time.

2. Who is eligible for fleet insurance?

An commercial driver

You can take up car fleet insurance to protect any number of cars from theft and optimize performance. You can cover any vehicle, from taxis to trucks. The insurance policies are on an ‘Authorised Driver’ basis, where every new car joins in the policy.

3. What are the advantages of car fleet insurance?

There are few downsides to having fleet cover. Some advantages of car fleet insurance include:

  • It is less hassling to manage the insurance of your vehicles
  • You get discounts on the insurance policies, making them cheaper
  • It is scalable and convenient
  • Car fleet insurance is more inclusive

4. What affects the cost of your fleet insurance premiums?

Several factors contribute to the amount you pay monthly for your car fleet insurance. These include:

Cars with fleet insurance policies
  • The number of vehicles you insure- more vehicles demand a higher premium
  • The type of vehicles- more expensive cars require higher premiums
  • Your drivers- younger drivers cost more to insure
  • Your claim history- high-frequency claims tend to raise the premium you pay

5. What is the difference between ‘any driver’ and ‘named driver’ policies?

An ‘any driver’ policy means that you have a flexible plan that allows any driver to drive your trucks. It is best suited for businesses whose drivers need to be driving different vehicles. This car fleet insurance plan is expensive but flexible.

On the other hand, a ‘named driver’ policy insures vehicles with a designated driver. This plan is suitable for a small business or company whose drivers tend to drive the same car.

6. Are there any disadvantages of fleet insurance?

Coins representing the cost of car fleet insurance

Some drawbacks of taking on a fleet insurance cover include:

(i) High premiums

Insurance companies calculate risks from all drivers, which increases your premiums. The same goes for when you have younger drivers who have higher risks due to lack of experience

(ii) Small fleets can be expensive

Car fleet insurance becomes cheaper as the fleet size becomes larger. Therefore, insuring a small fleet does not necessarily guarantee savings.

Car fleet insurance cover

7. What does the Car fleet insurance cover?

A fleet policy is mirrors the car insurance policy you have, with some extras. Some additional features mark the difference between insuring one vehicle instead of a fleet (a group of 2-500 cars). Depending on the cover you choose, you can cover breakdowns, public liability, or goods in transit.

Different covers may include trailer liability, employer liability, and courtesy car extensions. Remember, the cover on your policy will depend on the level of insurance you want for your fleet. Find out more about how the Vimcar vehicle tracking solutions can help you land an excellent fleet insurance deal.