Motor fleet insurance is a special business user policy designed to provide multiple vehicles coverage at once. These policies are taken out by companies that want to provide insurance protection for their business vehicles. Motor fleet insurance provides coverage for vehicles being used for business purposes and covers loss or damages caused due to any accidents or theft.

According to NimbleFins, motor fleet insurance policies shine not only for discounts that can be achieved but also because premiums and renewals are easier to manage. As all company vehicles are contained on one policy, it eliminates the need for tracking multiple renewal dates and keeping up with different monthly or annual premium payment dates. Additionally, many vehicle types can be included on the insurance, and it is not uncommon to see cars, trucks, and motorbikes all on one policy.

As the business needs change, vehicles can be easily added or removed from the policy to maintain coverage for the current fleet. A minimum of 2 vehicles will be needed to qualify as a ‘fleet’ and to be eligible to purchase a fleet policy. This type of insurance has been designed to accommodate most commercial needs with an upper limit of 500 insured vehicles allowed on most policies for large organisations.

What is a fleet insurance policy?

Companies use a fleet insurance policy to protect their vehicles while allowing them to be driven by many different people. For example, company employees may need to use different size vehicles on different days. Some types of fleet insurance provide protection across the board, no matter which vehicle is being used by which driver to perform business duties.

Protection applies when the vehicle is being used for business only, coverage will not apply if the vehicle is being used for personal reasons. Personal use should be ‘incidental’. Other limitations may also be in place depending on the terms of the fleet insurance policy. For example, companies can elect to have named drivers only use their vehicles to help keep premium payments lower.

‘Any Driver’ policies allow just about anyone to operate company vehicles, as long as the drivers are within certain age groups (e.g. 25 years of age and over). Provided they have a full UK driving license and have the company’s permission or its directors, they may drive a vehicle for business purposes under the fleet insurance policy.

As well as offering multi-driver and multi-vehicle protection, fleet insurance will shield companies and from:

• Theft
• Damage
• Windscreen and Window Damage
• Lost Keys
• Medical Expenses
• Breakdowns

Provided that the driver is a named driver, or the company has purchased an ‘Any Driver’ policy, the cost of vehicle repair or replacement and claims expenses will be covered in the event of any covered losses or accidents.

How to compare fleet insurance

Obtaining fleet insurance for your company will mean considering a few things. The coverage amounts needed along with the number and age of vehicles will affect the cost of premium payments for your policy. Deciding whether a named driver or any driver policy will work best for you and taking driver age limitations into account will also be a factor that impacts pricing.

Each insurer and policy will be different, and premiums can vary widely across insurance companies depending on the options selected. With such differences in premium amounts, it is important to compare quotes to get the best deal.

By using a comparison engine, you enter your information and view quotes for fleet policies provided by multiple insurance companies. Compare things like excess amounts, policy limits, and monthly premiums at a glance. Be sure to check any special policy limitations, conditions, or restrictions, and make sure you are getting the right policy for your business.

Is fleet insurance a cheaper option?

When purchased per vehicle, car and vehicle insurance can end up costing substantially more than buying a fleet policy. With individual policies, the type of vehicle, age, mileage is driven, and other factors combine to determine the cost of the insurance policy.

The same is true for fleet insurance but having company vehicles gathered together under one policy means that rates are often far less than insuring each car or truck individually. In addition, as these insurance policies are used for business purposes, there are some smart ways of reducing policy premiums even further.

Things like driver training programmes, safety courses, or using alarms and immobilisers to protect vehicles from theft can all help to reduce premiums. With a bit of research, companies can also opt for cars or trucks that fall into lower insurance groups, making the cost of the fleet policy more economical, which can be especially useful for smaller businesses with limited resources.

Lastly, installing vehicle trackers to benefit from safe driving practices, naming drivers, and restricting the age of anyone operating the vehicle is a great way to keep policy premiums down to a minimum.