What does a motor fleet policy cover?

A motor fleet insurance policy is a comprehensive solution designed for businesses in the UK that operate a fleet of vehicles, whether they are cars, vans, trucks, special types or a combination of these. This type of insurance offers cost-effective coverage and convenience by consolidating multiple vehicles under a single policy. Here’s what a motor fleet policy typically covers:

Third-Party Liability: The policy provides protection against claims from third parties for bodily injury or property damage caused by your fleet vehicles. It ensures that your business is financially secure in the event of an accident involving your vehicles.

Own Damage: Fleet insurance can also cover the cost of repairing or replacing your vehicles if they are damaged due to accidents, theft, vandalism, or fire. This helps minimise the financial impact on your business.

Uninsured and Underinsured Drivers: Some policies include coverage for accidents involving uninsured or underinsured drivers, ensuring your fleet is still protected even if the at-fault party lacks sufficient insurance.

Windscreen and Glass Cover: Many policies include coverage for repairing or replacing damaged windscreens and glass on your fleet vehicles.

Personal Accident Cover: Some fleet policies offer personal accident cover for drivers and passengers in case of injury or death resulting from an accident involving a fleet vehicle.

Legal Expenses: This coverage helps with legal costs if you need to defend your business in court, such as in the case of a liability dispute.

Breakdown Assistance: Many motor fleet policies offer optional breakdown assistance, ensuring your vehicles can get back on the road quickly in case of mechanical failure.

It’s important to note that the specific coverage and terms of a motor fleet policy can vary depending on the insurance provider and the unique needs of your business. As a commercial insurance broker, Safe & Insured can assist you in finding the right motor fleet policy tailored to your business’s size, industry, and vehicle types to ensure comprehensive coverage and compliance with legal requirements.

Motor Fleet

Can anyone drive a car on motor fleet insurance?

No. In a motor fleet insurance policy, not just anyone can drive a vehicle. Fleet insurance typically allows authorised drivers on the policy to operate the covered vehicles. These authorised drivers are usually specified by the business or organization that owns the fleet. They must meet certain criteria set by the insurance provider, such as age, driving experience, and any specific qualifications or licenses required for certain types of vehicles.

It’s crucial for businesses to maintain accurate records of authorised drivers and regularly update this list to ensure compliance with the policy terms. Allowing unauthorised drivers to use fleet vehicles can lead to coverage issues and potential indemnity refusal.

It is important should you be looking to allow a new driver on your fleet that you check they meet the specific requirement by your insurers such as age and prior to allowing them to drive a licence check is completed with the DVLA for any convictions or restrictions along with a completed driver form obtaining previous driving history and medical history.  

If you need to add or remove drivers from your fleet insurance policy, if on a named driver basis or you become aware of any new motoring convictions or claims it’s advisable to contact your insurance broker or provider promptly to make the necessary adjustments and ensure that your coverage remains valid and effective.

Fleet Management

Is fleet insurance cheaper?

Fleet insurance can often be more cost-effective than insuring each vehicle individually, making it a potentially cheaper option for businesses with multiple vehicles. This cost efficiency arises from several factors:

Bulk Discount: Insuring a fleet of vehicles under a single policy usually results in lower premiums per vehicle compared to individual policies, as insurers offer discounts for insuring multiple vehicles.

Simplified Administration: Managing a single fleet policy is more straightforward than handling multiple policies, which reduces administrative costs.

Customisation: Fleet insurance allows businesses to tailor coverage to their specific needs, avoiding unnecessary expenses and optimising the policy for their operations.

Claims Efficiency: Handling claims for multiple vehicles through a single policy streamlines the process, potentially reducing claims-related costs.

To determine if fleet insurance is cheaper for your business, it’s essential to compare quotes from different providers and consider your unique circumstances to find the most cost-effective solution.

No claims bonus on a motor fleet insurance policy?

In fleet insurance policies, drivers don’t typically accrue a No Claims Bonus (NCB), if you have a driver on your fleet policy that may be wishing to use their claim free driving experience from this to obtain a personal quotation then insurers and brokers can offer a letter to confirm the specific driver was not involved in any accidents.

Fleets work on an accrued vehicle years basis which is used to discount the premium based on the overall performance of the fleet.

Motor Fleet

How many vehicles do you need for a fleet insurance policy?

Typically, a fleet policy is designed for businesses with a minimum of three or more vehicles but, this can vary between insurance providers. Some insurers may consider policies for businesses with fewer vehicles, but it’s more common to see fleet insurance options for larger vehicle fleets.

The rationale behind this minimum threshold is to provide businesses with cost-effective coverage and administrative efficiency. Insuring multiple vehicles under a single policy can lead to cost savings and simplified management.

However, it’s essential to check with insurance providers, as policies and requirements can differ. They may also consider factors such as the types of vehicles, the industry in which the business operates, and the driving records of authorised drivers when determining eligibility for a fleet insurance policy. Businesses with smaller vehicle fleets may explore other commercial auto insurance options tailored to their needs.

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