If you have three or more vehicles in your company’s name, then some insurance providers will consider that to be a fleet.
You may be thinking “so what?” in response to that but this definition is important and it might result in you saving money on your premium. Here’s how.
The company’s vehicles
For many companies, their fleet comprises quite diverse vehicle types.
Perhaps senior people in the organisation have a prestige company car as part of their pay and provisions package. Other personnel, such as salespeople, may have a company car because it is necessary for their day-to-day business activities. It’s equally possible that there are commercial vehicles in the fleet too. That might cover vans and trucks etc.
It doesn’t matter what type of vehicle it is, a company will typically wish to make sure that it is insured.
If it is ever used on the public highway then the law will require that it is covered by a minimum of unlimited third party liability. In the case of most companies though, that minimum level of protection will be deemed to be insufficient and something closer to comprehensive cover will be required.
Trying to coordinate individual policy details and renewal dates, across a range of vehicles and potentially a number of different insurance providers, can become an administrative nightmare for fleet managers and business owners alike.
It might typically be a whole lot easier to manage if the cover was a single policy with a sole cover provider.
The cost dimension
This also introduces the notion of commercial advantage.
It might be possible to discuss this in financial consultancy-like terms but it simply boils down to an earthy truth – buying more from a single source often gives you better commercial leverage. In this context what that means is, if you are placing all of your vehicle insurance business with a single cover provider, the chances are you would expect to see a more advantageous premium in total than might be the case if you were spreading your cover across different insurers.
The key benefits of fleet motor cover
So, having a single motor fleet insurance policy for all vehicles might typically offer a company two very significant advantages:
- a reduced administrative overhead through dealing with a single insurance provider for all vehicles rather than multiple insurers;
- the possibility of cost reduction overall.
Fortunately, such cover exists. Typically, what’s called “motor fleet insurance” might offer:
- one policy covering all of the vehicles;
- any driver cover providing that they have a suitable licence;
- a single annual renewal date;
- cover for mixed fleets, including conventional cars and commercial vehicles.
As with any insurance policy there will be terms and conditions that need to be read carefully prior to making your purchasing decision. These conditions may well differ from one insurance provider to another.
In particular, you might see:
- certain highly unusual or specialist vehicle categories that require individual cover. That might include things such as toxic waste carriers or similar;
- possibly some policies may exclude, even under “any driver” provisions, drivers with certain forms of severe motoring convictions on their licence;
- this sort of cover might not be applicable to hire and reward fleets such as taxis and minicabs. For this type of requirement, specialist policy types typically exist.
This brief note has really only scratched the surface of why motor fleet insurance might benefit your company. It’s probably worth finding out more if you have several vehicles and are finding the insurance costs and administrative overheads involved