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  • The ultimate guide to commercial fleet insurance in 2021

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    This is the ultimate guide to commercial fleet insurance in 2021, covering what commercial fleet insurance is, the types of cover you can get and what to look out for in 2021.

    What is commercial fleet insurance?

    Commercial fleet insurance is for businesses that operate two cars or more. It allows you to manage all your commercial vehicles under one policy, making it easier to source, renew and budget. It is important to note that commercial fleet insurance cannot be used for families, as only businesses can purchase fleet insurance. Depending on your organisations policies, you can also use your commercial fleet vehicle for personal use.

    Do you get no claims bonus with fleet insurance?

    Unlike standard single vehicle insurance, you cannot receive no claims bonus discounts on commercial fleet insurance. You can however, reduce your insurance premiums and benefit from discounts. Insurance premiums are calculated by determining how many accidents your business has on the whole and what policies and systems you have in place to prevent accidents.

    Types of commercial fleet insurance

    There are a few different types of commercial fleet insurance. Each specialises in industry and vehicle size. They all come with the three standard options, third-party, third-party fire and theft and comprehensive insurance. 

    Standard commercial fleet insurance

    Standard commercial fleet insurance covers cars that are for business purposes, such as company cars.

    Courier insurance

    Courier insurance is a specialist insurance, suitable for businesses that drive to make multiple deliveries. You will also need additional insurance, such as goods in transit, to cover the items carried in the vehicles. 

    Haulage insurance

    Haulage insurance is specific to fleets of larger vehicles, such as trucks and heavy goods vehicles, that weigh from 7.5 to 44 tonnes and transport goods long distance or overseas.

    Taxi insurance

    You need taxi insurance if you operate a taxi service. You can't use standard vehicle insurance or fleet insurance for taxiing purposes. However, if vehicles in your taxi fleet have more than five seats, you must purchase minibus insurance.

    Minibus and coach insurance

    Minibus and coach insurance covers vehicles with five+ passenger seats and like coach insurance, vehicles can be insured on a public or private hire basis

    Self-drive hire

    Self-drive hire insurance is suitable if you hire out your fleet of vehicles to the public who have a valid driving licence and are 25 years or over.

    What can commercial fleet insurance cover?

    As mentioned, commercial fleet insurance can cover you for third-party incidents, third-party fire and theft or fully comprehensive. You can also opt for additional extras:

    Windscreen cover

    Replacement locks for lost or stolen keys

    Support with legal fees

    Help towards medical expenses if there are any

    Breakdown cover

    Loss or damage to your vehicles

    How much does commercial fleet insurance cost?

    The cost of commercial fleet insurance is dependent on what you operate your fleet as it comes down to the following:

    How many drivers or vehicles you have in your fleet

    The weight and size of your vehicles

    Where your vehicles are kept overnight

    Time spent on the road

    Claims history

    Driver risk profile

    It all about risk. If your fleet has a high risk, then it will be more expensive to purchase. However, fleet insurance is cheaper than purchasing individual insurance for each person or vehicle.

    To reduce your fleet insurance costs, you can use telematics, fleet technology, drivers training and maintaining your vehicles to a good standard.

    What to look out for in 2021

    There are always new trends in the fleet, especially with government incentives to encourage the use of electric vehicles, the advancements in fleet technology and ongoing and ever-changing political policies that impact drivers and driving abroad.

    Fleet technology

    Fleet technology is constantly evolving, and new features are coming available to help fleet managers keep their drivers safe, manage budgets and improve the efficiency of their fleet. Tools like predictive analytics and advancements in video telematics can help you to ensure you have more efficient and relevant commercial fleet insurance. It helps to stop underfunding or overspending on your fleet insurance and offers better protection.

    Flexible fleet insurance

    With the pandemic, many fleet managers are looking to have a more flexible fleet, which means flexible fleet insurance. This will help managers to plan for peak and quieter periods so that you can tailor their fleet to certain times of the year, this avoids vehicle downtime and ensuring you have enough vehicles for peak periods.

    Travelling abroad from the UK

    Since the UK officially left the EU and with the new trade agreement taking place in Jan 2021, you are required to have a green card if driving a UK vehicle abroad. Green cards show your insurance covers you while driving in a different country.

    A green card is provided to drivers by their insurers, which means fleet managers will have to obtain green cards for each driver who is driving in the EU and other countries.

    However, as of the 20th of August 2021, you will no longer need a green card to drive in the EU. Instead, you will only need to show a valid insurance certificate.

    If you are looking for help with your commercial fleet insurance, contact us and we will be able to discuss your insurance requirements.

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