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  • What is fleet insurance?

    What is Fleet Insurance

    Fleet insurance is a businesses insurance aimed at companies with two or more vehicles. It makes it possible to insure multiple vehicles – from cars, minibuses, trucks, HGVs and taxis – on a single insurance policy.

    What does fleet insurance cover?

    Fleet insurance is essentially a multi-vehicle insurance policy covering the different types of vehicles your business owns and uses for commercial purposes. It’s available to any registered business with two or more company-owned vehicles within its fleet.

    This type of insurance is a great way of managing your business vehicle insurance obligations within a fleet because it condenses all your vehicles’ cover into just one policy. That way, when it’s time to renew, you only have to update one policy; regardless of how many vehicles your company has in service.

    What types of vehicle does fleet insurance cover?

    Fleet insurance extends to all classes of vehicle owned and operated by your company for its business operations. This includes any company-issued cars your employees use for work journeys, as well as taxis, motorcycles, minibuses, HGVs, trucks and even plant used on construction sites.

    Providing all the vehicles you want to insure are registered under the same business ownership they’ll qualify to be included as part of a combined fleet insurance policy.

    Are there different types of fleet insurance available?

    Absolutely, just like other forms of commercial and domestic insurance on the market there are different tiers of fleet insurance cover to consider for your business.

    Typically, these fall into three categories:

    1.    Third party only

    If you opt for third party fleet insurance only you’ll be covered for third party damage to another driver and/or his or her vehicle. This is the cheapest form of fleet insurance and the minimum amount of legal cover required for fleet businesses to operate. While less expensive than other types of fleet insurance, this policy does not pay out for damage to your own vehicles and drivers. Therefore, in the event of an accident, you would be liable for any repairs to your own vehicles.

    2.    Third party, fire and theft.

    Third party, fire and theft, fleet insurance, offers you a higher level of protection than just third party alone. While there’s no legal requirement for this policy, the addition of fire and theft means you’ll be able to make a claim if a vehicle in your fleet is stolen, or sustains damage as a result of a fire. This policy type also covers you for any injury or damage to third parties in the event of an accident.  

    3.    Fully comprehensive

    Fully comprehensive fleet insurance is the most advanced form of cover on the market and consequently the most expensive of the three policy types. If you elect for fully comprehensive fleet insurance you’re protecting yourself against all of the above (theft, fire and third party) but also covered for damage to your own vehicles and drivers.

    What are the benefits of fleet insurance?

    From the ability to lower insurance premiums for your vehicles, to reducing office admin, taking out fleet insurance offers businesses a range of attractive benefits, in addition to peace of mind:

    •    Just one policy to cover all business vehicles

    With fleet insurance you can insure every vehicle in your company’s ownership on just one policy, regardless of vehicle type. This means that even mixed-use vehicles can be insured together, without the need to take out individual policies for every vehicle in your fleet.

    •    One policy renewal date

    Insuring every vehicle in your fleet on the same policy means you only have to deal with one policy renewal date. This is especially beneficial in businesses with a large number of vehicles on the road as it significantly reduces admin time, freeing up resource to focus on other areas of your business.  

    •    The possibility of cheaper premiums

    Choosing to take out fleet insurance can work out cheaper than individually insuring vehicles within your fleet. If one of your vehicles is involved in an accident, an insurer may choose to spread the cost of any claim made across all vehicles, subsequently lowering the premium you pay.

    •   More favourable conditions

    If you have some drivers within your fleet that are difficult to insure, a fleet insurance policy is more inclusive and their individual risk will be offset across the fleet.

    How much does fleet insurance cost?

    How much your fleet insurance premium will total depends entirely on the level of cover you take out, and the types of vehicles and drivers you have in your fleet.  

    When you’re applying for fleet insurance you’ll be asked for some details about your vehicles, all of which will affect the premium price you’ll be offered. Those factors that will influance cost include Vehicle age, Annual mileage, Driver age, Driver history and Location.

    Typical questions fleet insurers ask include:

    • How many vehicles do you have in your fleet?
    • What types of vehicles do you want to insure?
    • How old are the vehicles?
    • How often are the vehicles in use?
    • What condition are the vehicles in?
    • Where are the vehicles kept overnight?

    These questions are designed to help an insurer gauge the level of risk involved in your operation, and it’s important to answer honestly with accurate information. If any details you’ve given are found to be false, it could affect your ability to make a claim in the future.

    Does fleet insurance cover my drivers?

    Again, this is dependant on the type of policy you take out. Fully comprehensive is the only fleet insurance that includes driver cover, so if you want your drivers to be insured, this is the policy type you should be looking at.

    When seeking comprehensive cover, you’ll also be asked to provide some information about the drivers in your fleet. This is so an insurer can offer you a bespoke quote, based on your business’s unique circumstances. As before, it’s vital you answer honestly and volunteer all the required information when requested to do so.

    Driver factors that generally affect fleet insurance premiums include:

    • Driver age
    • Whether you want to name individual drivers or have an all-driver policy (where anyone that meets the driver criteria is covered)
    • Any previous driving convictions

    Naming each driver typically brings the price of the policy down, while having young drivers in your fleet (aged under 25) can increase the costs. If you do elect to name each driver it’s vital you keep your insurer informed when you make new hires, as any driver not named on the policy won’t be covered.

    Named driver or any driver policy?

    Any driver policies provide the greatest flexibility and are well suited to larger businesses who struggle to tie down drivers to specific vehicles. But of course, with that flexibility comes higher insurance costs which can rise considerably in accordance with the increased risk involved.

    Alternatively, named driver policies are more affordable and suitable to smaller businesses that can assign vehicles to drivers. They are the more affordable option, but often a mix between the two can prove most beneficial with younger drivers or those with previous convictions being placed as named drivers.

    How many vehicles can you cover with fleet insurance?

    This is subject to the insurer, but most companies will cover from a minimum of two vehicles, up to 500 or more on a single policy.

    Can I qualify for a no-claims discount?

    Unfortunately not, no claims bonuses aren’t applicable with fleet insurance.

    Is vehicle breakdown cover included?

    This isn’t a standard feature of fleet insurance policies but most insurers will offer this as an add-on.

    How do I get fleet insurance?

    Fleet insurance is incredibly complex and comprehensive so it’s best to speak to a qualified insurance broker who can verify that the policy you take out meets all your needs and at the most competitive price.

    At Bluedrop Services our brokers have over many years experience organising business insurance polices for the UK fleet sector. To talk to us about fleet insurance for your organisation call 01489 222 156 or email [email protected]

    Our advisors will take a few details from you and use the information provided to secure you the cover you need, for the best possible annual or monthly premium.

    Want to find out more about Bluedrop's Motor Fleet Insurance?
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