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What is Fleet Insurance? 

We’ve produced this informative blog to provide a simple, no fluff resource to understand how fleet insurance works and why it’s beneficial to businesses. Once you have read this blog you will understand the four main questions we keep getting asked as specialist fleet insurance brokers. You will understand 1) what is fleet insurance? 2) How to get fleet insurance, 3) what is a fleet policy and 4) how does fleet insurance work? If you are looking for a fast and simple answer or more advice, please Contact us here.

So, what is Fleet Insurance?

Let’s begin with the most common question you are probably asking yourself, what is fleet insurance? In a nutshell, fleet insurance is effectively a policy where you bulk buy insurance for a number of vehicles, under one policy from a single supplier. Fleet insurance is available for small and large fleets of 3+ vehicles, ranging from a huge national logistics company to a local village bakery with 4 vans. Fleet insurance can cover cars, vans, minibuses; HGV’s, taxis and trucks.

Fleet insurance is designed to keep things simple. Whereas some companies may choose to insure each vehicle individually, companies who take advantage of a fleet insurance policy can cover 3+ vehicles on a single policy. This saves businesses time as it removes the hassle of having to deal with multiple suppliers, or multiple policies for each vehicle. Also, Fleet insurance often saves businesses money as many fleet insurance brokers offer companies discounts for larger fleets of vehicles.

So, next time someone asks you ‘what is a fleet policy?’ You will be the fountain of all knowledge! To discover more about our range of fleet insurance policies visit our Fleet Insurance Page.

How does fleet insurance work

So, we have now answered ‘what is fleet insurance’ we can move on to the next big question – How does fleet insurance work? Think of fleet insurance as a single policy which covers a whole fleet of vehicles. It’s all about simplicity and flexibility. There are a number of key benefits of a fleet insurance policy, which we will outline in the next section. Right now, we will dig deeper into the levels of cover fleet insurance can offer.

  1. Third Party Only: This is the most basic level of cover required by law. This policy will offer fleets no protection whatsoever on their own vehicles, but it will cover the cost of any claims made against you from a third party.
  2. Third Party Fire and Theft: This is also referred to as the middle level of cover. This policy will offer you the same third party protection as outlined above, but it will also cover your own vehicles against damage caused by fire and theft only.
  3. Comprehensive: This is the most complete level of fleet cover. It covers any damage caused to your own fleet and third party vehicles, as outlined above, but it will also pay out on vehicles and property damaged as a result of an accident, whether you’re at fault or not. It can also cover contents and healthcare costs in the event of physical injury.
  4. Add on Liability and Goods in Transit: Always outline your business practices to your broker to decide if you need these further levels of protection. Public Liability Insurance protects your business against any claims for injury or accidental damage caused as a result of driver negligence. Employer’s Liability Insurance protects a company’s employees from accidents and injuries and should be considered by all business owners. Goods in Transit Insurance does what it says on the tin. It covers the value of goods damaged whilst being transported by your fleet. If your fleet delivered high-value white goods and was involved in a crash, it’s easy to imagine how costly not having goods in transit insurance could be.

Read more: Goods In Transit Insurance Page

Benefits of a Fleet Insurance Policy

I hope this is all making sense so far? To re-illiterate what I said at the start if you are confused please contact our friendly team. Now, on to the juicy part! We know understand what fleet cover is and how it works, but what are the main advantages of fleet insurance? In a nutshell fleet cover is simple, less hassle, and cheaper than other company policies. Here are 4 clear reasons why having a fleet insurance policy in place makes sound business sense.

  1. It’s less hassle. With fleet cover you have one policy, one supplier and one renewal date, making fleet Insurance far easier to keep track of. Vehicles can be easily added and taken off the policy at any point; all you have to do is call one supplier. Now, compare that to having 50 vehicles with 50 different policies and 50 potential contact numbers – not worth thinking about is it?
  2. It saves money. Insuring all your vehicles on one policy usually means brokers will offer you a bulk discount, lowering the overall cost per vehicle. Also, as fleet insurance is typically group rated rather than driver rated, it often works out cheaper than having to outline every single driving restriction.
  3. Add any driver options. Following on from the above point, fleet cover can be set up in such a way that anyone with your permission is permitted and insured to drive your vehicles. This makes managing your fleet simple and removes complications when things change unexpectedly like a new driver starts or covers for annual leave.
  4. Simple accounting. Talk to any accounts team and they will tell you 50 invoices from 50 insurance companies’ causes untold pain and misery. Dealing with one insurance company keeps your accounts simple and manageable

How to get Fleet Insurance

Setting up fleet insurance can is as simple and clear as the fleet insurance broker you chose to set it up. Always find yourself a trusted fleet insurance broker who has experience in setting up fleet cover policies. Always be very specific about what exactly your business does and the number vehicles in your fleet. Be clear about the type of drivers who will need to be on the policy and seriously consider a policy with no driver restrictions (any driver policy), as this will save more hassle and save money.

Get a Fleet Cover Quote from 1st Choice

We are a leading fleet insurance broker with over 10 years experience helping fleets of all sizes save money. Simply give our friendly team a call on 01743 770505 or get a free quote using our Fleet Insurance Contact Form.