Motor Fleet Insurance
Managing your business’ fleet of vehicles—worth anywhere from a few thousand to millions of pounds—can seem like a Herculean task. As a fleet owner, you must ensure your employees are authorised to drive, that each vehicle’s use is covered in your insurance policy and that you can add or remove vehicles from your policy to coincide with your business’ needs.
Fortunately, with a bespoke motor fleet insurance policy you do not need superhuman strength to manage your business’ vehicles. Compared to standard motor insurance policies, the average motor fleet policy is much more robust and flexible, making your job easier by reducing driver restrictions and allowing you to regularly add or remove vehicles from your policy. Unburden yourself by securing a comprehensive motor fleet policy for your business.
Types of Motor Fleet Insurance
Insurers usually define a fleet as anywhere from two or three to thousands of vehicles. The advantages of a motor fleet policy stem from its flexibility and wide breadth of cover. While standard motor insurance can only cover certain vehicles under certain policies, motor fleet can cover an assortment of vehicles with a variety of uses under one policy. This flexibility reduces the need for fleet oversight and thus lowers overall administrative costs. The following vehicles can be covered all together under one policy:
- Special type vehicles and mechanical plant
- Agricultural and forestry vehicles
- Large goods vehicles (LGVs)
- Private cars
Although motor fleet policies are more flexible and can encompass a larger array of vehicles, the same general range of covers, listed below, is available to fleet operators as private individuals:
Third party only policies are legally required in the United Kingdom and only protect against injury, loss or damage to third parties.
Third party fire and theft policies extend fire and theft cover to a third party only policy.
Comprehensive policies come with a higher excess but substantially protect vehicles owned by your business or in its custody from accidental damage.
Excess amounts across all three categories of cover will vary depending on the type of work your business does and its level of risk. Insurers rate business’ risk exposure and calculate premiums based on the fleet’s claims experience over the last three to five years and any current trends that can forecast how the fleet will perform in the future.
An additional ‘Excess Protect’ product can be purchased from Business Insurance Service, this product saves the policyholder from having to make excess payments at the point of claim by paying a set premium per year, these policies can be arranged for fleet operators and individual vehicles.
Typical Extensions to Motor Fleet Insurance
Because a fleet can consist of 2 to over 5,000 vehicles, motor fleet policies typically offer a more expanded selection of extensions than standard motor policies to accommodate all types of fleets. The following extensions may be available as part of a fleet policy:
- Replacement locks following loss or theft of keys
- Vehicle recovery and redelivery
- New vehicle replacement
- Occasional business use
- Replacement locks
- Personal accident
- Medical expenses
- Personal effects
- Legal protection
- Breakdown recovery and Roadside Assistance
This list isn’t comprehensive. It represents just a few of the scores of extensions available to motor fleet policy holders. We can work with you to write a bespoke policy that addresses your business’ specific risks.
Typical exclusions on Motor Fleet Insurance
Motor fleet policies are a viable, cost-saving alternative to standard policies, but they are not without their exclusions. The exclusions enumerated below are some of the most common to motor fleet policies:
- Loss of use costs not covered by a courtesy car arrangement
- Wear, tear, depreciation and diminution of value
- Mechanical breakdown repair costs
- Loss of vehicle through deception
- Tyre damage through normal use
- Keys left in the vehicle
- Sonic booms
This list is also not all-inclusive, but it may be possible to obtain cover for these exclusions as an extension of a bespoke policy.
The Benefits of Telematics on Commercial Motor Fleets
Managing your motor fleet’s collective risk can feel like an endless exercise in futility. Instead of addressing risks as they develop and perpetually playing catch up, invest in motor fleet risk management strategies that thwart problems before they appear.
Reduce operational costs—Telematics software can help keep drivers updated on upcoming traffic concerns or road hazards, offer rerouting options and locate preferred petrol stations—all of which can contribute to improved fuel efficiency and reduced operational costs.
Encourage safe driving—Telematics allows employees to better monitor their individual driving habits and detect flaws that they might not have realised otherwise.
Bolster fleet security—Employers can utilise telematics tracking to detect the location and route of any stolen vehicles, simplifying the vehicle recovery process.
Reduce administrative costs—Telematics allows employers to digitise records that would otherwise have to be maintained manually, which can be a time-consuming process.
Ensure vehicle maintenance—Telematics software can detect a wide range of vehicle breakdown or maintenance problems, such as engine issues or diagnostic concerns.
Motor Fleet Insurance Risk Management
Following these steps can help you isolate and eliminate your business’ biggest motor fleet risks.
Use this checklist from the Highways Agency during a daily vehicle check.
A checklist of items used to inspect company vehicles. Customise to fit your own specific needs.
Use this sample checklist for keeping track of a particular vehicle’s maintenance.
The following document provides information about the importance of proper motor vehicle claims reporting procedures.
This this form for reporting motor fleet vehicle claims, you can customise to your own needs. Simply complete and return to us by email in the event of an accident.
Motor fleets are a diverse group. They can encompass anything from a five-vehicle food delivery business to a multinational office supply company. The insurance professionals at Business Insurance Service have you covered and will work with you to find the most comprehensive cover.