For businesses that own a number of vehicles such as vans, cars, taxis or HGVs, ensuring these vehicles will be a large cost to the business and one way in which the business can save money is to ensure they get the best value fleet insurance policy for their fleet of vehicles.
Instead of purchasing individual insurance policies for each vehicle the business owns, the most cost-effective way of insuring the fleet, will be under a single policy known as a fleet insurance policy. A fleet insurance policy can cover any amount of vehicles from two vehicles upwards and can combine types of vehicle within the same policy, e.g. three cars, two vans and lorry. It is cheaper to insure fleets in this way is a single policy will only incur single administration fees and commissions to the broker as opposed to multiple policies which result in a much higher administration cost to both broker and insurer.
The overall cost of the fleet insurance, is very dependent on the type of vehicle, the driving history of all named drivers, the insured amount of the vehicles, the type of business and the location of the business. Many of these things are out of the businesses control, but one thing the business should take into account is the drivers that they will list on their policy. By having all drivers over the age of 25 and making sure all drivers have a clean driving licence, this will help in reducing the overall cost of the fleet insurance policy. Another important factor that the insurer will use to assess the liability of the policy is what the vehicles are used for and the estimated mileage of the vehicles for each year. If the business uses their vehicle to carry goods that the business owns such as tools, carriage of own goods will need to be added to the policy, if customers goods are carried in the vehicles as will be the case with a courier company then goods in transit cover would need to be added to the insurance coverage.
With businesses that have large fleets of vehicles that may change throughout the life of the policy then it may be pertinent to consider getting an any vehicle policy. These are generally more expensive than policies where each vehicle is listed, but does offer the protection the liver business purchases a new vehicle and forgets to notify the broker that there is a new vehicle on the fleet, it will still be covered by the insurance policy.
As with any vehicle policies, there are any driver policies available, once again these are generally more expensive than policies where each driver is named and their driving history is declared at policy inception. These policies can be very useful where there is a high turnover of staff, which is often the case with taxi businesses and courier businesses.
Whatever type of policy decide to get, make sure its right for your business. It is important to keep your insurance broker up to date with any changes that you have made to your vehicles or your drivers if you do not have the any vehicle or any driver -type policy.