How does a fleet insurance policy work?

It is a legal requirement for every vehicle on the road to be insured in the UK. If you are running a business and have business vehicles, you can cover your vehicles with a fleet insurance policy.

What is a fleet insurance policy?

Fleet insurance allows you to insure more than one car under the same policy. Fleet insurance is for businesses that operate over two vehicles.

Arranging insurance policies individually for more than two cars can be stressful and time-consuming. Fleet insurance’s aim is to simplify the insurance policy and make it easier to manage for businesses.

Fleet insurance is available as third-party, third-party fire and theft and fully comprehensive.

How do fleet insurance policies work?

Fleet insurance works by covering all the vehicles your business operates under one policy. It covers any accidents and damages to your or third-party vehicles. It can also cover the vehicle for theft, fire damage or even loss of keys.

The type of coverage you can get varies depending on the size of your fleet:

Small fleets: Local trade businesses sometimes have a fleet of as few as two vehicles, also known as a mini fleet. We offer fleet insurance for two vehicles or over. 

Large fleets: large fleets such as taxis and sales businesses that require site visits tend to have more vehicles in their fleets. Large fleets often benefit from more discounts and having all information under one policy to make it easier to manage.

What do fleet insurance policies cover?

A fleet insurance policy will cover vehicles for the following:

• Loss or damage to your vehicle
• Breakdown cover if your vehicle is involved in an accident or if it breaks down
• Support with paying legal fees
• Damage to your vehicle’s windscreen and windows, repairing chips or replacing the whole windowpane if needed
• Help to pay towards medical expenses if your passenger is injured

There are additional insurances you can purchase that are more specific to your business. For example, we also offer taxi fleet insurance, goods in transit insurance, tools insurance and many more. It’s best to speak to one of our fleet insurance brokers who can help advise you.

How much does a fleet insurance policy cost?

Fleet insurance policy costs are dependent on how many vehicles you want to insure, the age and driving experience of your drivers and the types of vehicles you want to insure.

If you have a fleet larger than five vehicles, then you are likely to receive higher discounts on your fleet insurance, anything under five tends to cost more.

There are many other factors when it comes to working out your fleet insurance costs, from the level of cover you need, to what procedures you have in place to prevent accidents and keep your drivers and vehicles safe.

What can you do to reduce your fleet insurance policy costs?

There are things you can do to keep your fleet insurance costs down:

Use electric or hybrid vehicles

Some insurance providers are now offering “green insurance” which adds a “green” discount to those driving more sustainable vehicles, as a way to incentivise the switch to electric vehicles.

Employ good drivers

Thoroughly vet your drivers before you employ them, check there are no previous driving offences on their record.

Reduce mileage

Optimise your journeys by going on the route that uses fewer miles and uses less fuel.

Driver training

Provide regular training to your drivers to encourage them to drive safely and efficiently.

Fleet technology

Use technology such as dashcams and telematics to provide evidence to insurance providers in the event of an accident. If the accident wasn’t your driver’s fault, this will show who is at fault and responsible for paying the damages.

Store your vehicles in a safe place

Keep your vehicles locked away to prevent theft or damages to your fleet when they are not in use.

You can find out in more detail how to reduce your fleet insurance in our updated guide.

What are the benefits of a fleet insurance policy?

As a business, there are plenty of benefits to having fleet insurance. Especially if you have more than five vehicles in your fleet.

Less administration 

As there is only one policy that covers all your business vehicles, it's easier to submit claims as there’s only one point of contact, and there’s only one renewal date to remember.

Discounts and cost savings

Fleet insurers usually offer discounts to fleets with more than five vehicles, making them cheaper to insure. The larger the fleet, the bigger the discounts.

What types of vehicles can you insure under fleet insurance?

You can insure any type of vehicle under fleet insurance. The most common types of fleet insurance are:

• Cars
• Taxis
• Vans
• HGVs and trucks
• Minibuses
• Couriers
• And rentals

If you’re looking for fleet insurance or you want to discuss your current fleet insurance policy, contact our team today.