What is fleet insurance? A detailed guide

An overview of Fleet Insurance

Getting adequate coverage for all the cars and drivers in a fleet—which may consist of vans, taxis, buses, or other sorts of vehicles—is sometimes challenging and expensive for many different kinds of enterprises and organizations. A type of motor vehicle liability insurance called fleet insurance covers the fleets of cars used by businesses, government agencies, and other organizations. There are ways to cut the expense, but they can be expensive.

This article will discuss fleet insurance, how it can benefit your company by offering complete coverage for all of your cars, and some practical advice that could help you save on the cost.

What is the insurance coverage for fleets?

Fleet insurance offers comprehensive commercial vehicle coverage in a single package, helping to keep premiums low while making sure there are no coverage gaps. This kind of insurance policy covers any vehicle utilized by a single business, including delivery motorcycles, vans, trucks, and taxis. All business types can benefit from Fleet, which offers versatile solutions to fit even the most specialized plans at reasonable prices. Combining various commercial auto insurance coverage options under a single policy can also help to lower excesses and premium expenses.

What is covered by fleet insurance?

The cost of insuring a fleet of cars is something that all business owners are aware of; fleet insurance policies often offer higher levels of coverage and broader safeguards than basic commercial vehicle policies. This covers any pre-existing conditions that aren’t typically covered by standard commercial vehicle plans as well as any new hazards that might arise during the course of your policy (for instance, if you hire new drivers or vehicle manufacturing defects). Another perk is that the majority of fleet insurance providers include an “all-risk” option that covers third-party property damage and legal liabilities.

This implies that you are shielded from any lawsuits filed against your business by third parties alleging that your vehicles were to blame for their injuries, property damage, or other harm. This is a significant perk because that is typically not the case with traditional commercial car insurance packages.

What kinds of fleet insurance are there?

Fleet insurance comes in a variety of forms, each of which is tailored to certain commercial needs. Both public hire and private hire fall under the two main categories in the UK. Furthermore, haulage insurance covers larger commercial vehicles like lorries and vans that transport goods from point A to point b, whereas courier van insurance is available to businesses that need delivery services utilizing smaller vehicles that often only transport one or two items at a time.

Listed below is a breakdown of each type:   

Public hire insurance

Drivers employed by public hire businesses operate under their own licenses while performing services for a client. This sort of policy covers up to three drivers of any covered vehicle, including taxis, limos, and chauffeur vehicles, so they may all operate separate vehicles if necessary and still be covered under the policy.

Private hire insurance

Private hire businesses typically only hire drivers who have their own licenses, so they have a slightly different set of criteria. Up to two drivers of any vehicle covered by the contract are insured under this sort of policy. This means that, as the business’s owner, you are free to drive any of your vehicles, as opposed to employees, who are limited to using only those for which they have a valid driver’s license.

Insurance for hauling

Due to the size and weight of their fleet, which can range from tiny vans to huge lorries, haulage businesses require a different type of insurance coverage than public or private hire insurance enterprises. Companies that periodically perform other labor (such as moving furniture) on behalf of someone else, but for whom this isn’t their full-time job, also utilize this type of policy.

Insurance for courier vans

For smaller courier organizations with delivery drivers utilizing one or two vans, courier van insurance offers tailored commercial vehicle insurance plans. Smaller business vehicles that regularly transport one or two goods at a time but may not always need this level of service are usually covered by it. For instance, several businesses rent out little vehicles that are occasionally used for transporting furniture. Because just the driver requires a separate driver’s license, these policies are often far less expensive than personal vehicle policies.

What is the cost of a fleet insurance policy?

The price of your fleet insurance will depend on the kind of fleet you have. Fleets used for public transportation are particularly pricey because they need specialized commercial vehicle insurance to shield your company from claims liability in the event that a member of the general public is injured in an accident. If drivers who have been in accidents in the past five years do not have acceptable no-claims histories or clean driving records, renting automobiles may result in higher premiums.