The question “what is fleet insurance?” is regularly heard by the team here at Alan Blunden & Co. It’s one we can easily deal with.
It is insurance designed to cover a “fleet” of vehicles, all under one policy.
What makes a fleet?
In theory, it’s possible to make a case for saying any number of vehicles greater than one is a fleet!
However, we typically consider that the term really starts with a minimum of three vehicles. There really isn’t any specific definition of what type of vehicles either – they might be cars, vans, trucks, HGVs and so on. The fleet can even be of mixed types.
It’s worth keeping in mind though that not all insurance providers work to the same definitions. Some might consider that a fleet only starts with five or more vehicles. Others may have conceptual troubles with mixed fleets of trucks and cars etc.
We’re very flexible in terms of such definitions and can typically provide a fleet insurance policy to match.
There are some types of fleet that are typically regarded as being in a separate category. We can’t offer fleet insurance for fleets comprising:
- courier services bikes and vehicles;
- chauffeur-driven cars for hire;
- family vehicles (i.e. several vehicles used by a single family).
If you’d like to know more about these exclusions, we’ll gladly supply further information upon request.
Why fleet insurance typically makes sense
If you wish, it’s perfectly possible to take out individual driver and vehicle cover for each vehicle in your fleet.
Of course, that’s going to mean that in a fleet of say 10 vehicles, you’ll have 10 different policies. Each may well have its own renewal date and if they’re spread across several different insurance providers, your admin overhead is likely to be significant.
With vans accounting for more than a fifth of all traffic on UK roads, there is little doubt that many will be fleet vans and it’s difficult to imagine the extra paperwork and administrative overhead if each one had its own individual and unique insurance policy!
Administrative convenience isn’t the only issue though.
In typical circumstances, there are also good financial reasons why this type of policy makes sense. These can be explained in a lot of accounting and commercial detail but the bottom line is simple – it’s often possible, in almost any aspect of life, to secure a more advantageous unit price if you’re buying in bulk. That’s typically as true within the domain of commercial fleet insurance as it would be elsewhere.
So, given the financial pressures applying to many fleet managers at the present time, this type of consolidated fleet policy will typically make a lot of financial sense.
What’s included in the policy
Almost inevitably, policies will differ in terms of the things that are or perhaps are not, included in the price. You should be considering variables such as:
- windscreen damage/breakage;
- accidental damage;
- replacement vehicles; etc.
We will work with you to discuss all of your requirements in those areas but there are some important things we include as standard:
- unlimited mileage;
- cover for younger drivers (provided they have the appropriate licence qualifications of course).
Hopefully this has given you a flavour of our fleet insurance cover. Why not contact us to find out more?