What is Fleet insurance?

18/06/2013 -- Mary Simpson
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Fleet insurance is the combining of the insurance for all your company's vehicles into one insurance policy.

Because commercial, business and public sector motor vehicle fleets often require a wide range of transport, fleets can consist of many different makes and types of vehicles, eg:

  • Coaches and buses
  • Minibus, taxi and limos
  • Car and 4x4s
  • Artic Tractors
  • Curtainside vehicles
  • Flat bed
  • Tail lift
  • Tipper truck
  • HGV
  • LGV Van 3.5 ton
  • Motorcycles

Combinations of vehicles can be covered under one fleet policy.

Your fleet vehicles must be insured for the purpose they are used for, eg:

Fleet Definition

The definition of a fleet is usually about 15 vehicles or more, mini-fleets are from 3-15 vehicles.

Depending on the insurer, you can include any range and number of vehicles - from just 2 to 1,000 plus. Most insurers demand a minimum of 3 - 4 before they will consider you for mini-fleet cover.

Advantages of Fleet Insurance

The benefits of a fleet insurance policy are:

  • It's cheaper than taking out a policy for each vehicle.
  • There's less paperwork and admin.
  • Only one renewal date to remember and one insurer to deal with.
  • Correct cover is given to each vehicle so overall risk is better managed.
  • Cost savings - eg, cheaper windscreen replacement, discounted breakdown insurance, cheaper legal expenses insurance.

The downside? The renewal date for the total premium due falls on the same day. Unless you budget for this, it could upset cash flow. Some insurers let you pay by installments, while others charge for this.