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What is fleet insurance?

What is fleet insurance?


If you have a business (or commercial) fleet comprising three or more vehicles, then it might be advisable for you to consider fleet insurance.

The nature of a fleet

It’s not uncommon to discover people who consider that a fleet of vehicles must entail an awe-inspiring horizon-to-horizon vista of cars, trucks and lorries etc. As such, it’s a term often associated with major multinationals or road haulage firms.

In practice though, to fleet insurance providers, a van fleet might comprise as few as three vehicles. They might therefore be able to propose a van fleet insurance policy to cover it as a single entity. That would save you needing to take out a policy for each and every van in your fleet.

Now at this stage, you might be inclined to say “so what?”

Well, it’s actually something that might offer major attractions and advantages to you. Getting to grips with the concepts might just help keep a little more money in your account rather than handing it to an insurer!

The potential advantages of fleet insurance policies

Commercial or van fleet insurance isn’t just a marketing term.

With vans accounting for more than a fifth of all traffic on UK roads, there is little doubt that many will be fleet vans and that’s why this type of policy is an important category of cover that might typically offer you:

  • a single policy for all your vehicles. That’s something that potentially might save you a lot of time. Imagine, for example, having seven vans in your fleet and only needing to renew one policy once a year instead of seven individual policies? Imagine only needing to deal with one insurer rather than several;
  • a reduced premium. The logic here is very straightforward – insurers, like many commercial organisations, may offer discounts in return for bulk buying. The savings here over multiple individual policies might typically be highly attractive.

In fact, it’s very difficult to identify a disadvantage to taking out van fleet insurance cover if you have such a fleet.

The nature of the policies

It might surprise you to know that apart from the above two factors, there may be very little visible difference between the nature of this type of cover and individual policies.

Of course, as with any insurance cover, it’s important to read the conditions and be clear what cover you’re getting for your money.

Just like with individual policies, fleet cover can vary from one policy to another and what’s suitable for one fleet manager’s situation might not be for another’s. Be cautious also about assuming that the lowest-cost policy is also necessarily one that’s going to be suitable for your fleet situation.

In the case of some policies though, you may be able to benefit from advantages such as:

  • no claims discounts;
  • any driver cover (qualifying conditions such as age, licence qualifications and possibly motoring conviction constraints might apply there – as you’d expect);
  • optional voluntary excess – something that might help you to save yet more money through reduced premiums (there will typically be a mandatory minimum excess);
  • unlimited mileages.

All things said, this should all be very familiar to fleet managers apart from the fact that it’s now on one policy not several.

If you have three or more vehicles and don’t have fleet insurance cover, you should perhaps start to consider it – and now!