Fleet Insurance

Fleet insurance is a particular type of car insurance which covers several vehicles under one policy, usually when these vehicles all belong to one business.

For personal rather than professional multi-vehicle insurance, you are able to purchase a multi-car policy. A multi-car policy typically offers a reduction of five percent on the premiums you pay for your second car, though deals may vary. If you wish to insure a second family car for example, you should first approach your current car insurance provider and ask them for an estimate for insuring this second car. The estimate will typically include a discount for insuring more than one car with them, although this does not necessarily mean that the second car's premium will be the cheapest offer: it is important to compare premium prices from several insurers to ensure you choose the best deal.

Fleet insurance is available for businesses that run two or more vehicles, although some insurance providers will offer fleet insurance only when there are five or more vehicles to be insured. Usually, the premium that you pay will be far cheaper than purchasing individual policies for each vehicle. In addition, it is relatively simple to manage the insurance administration, since every vehicle is insured on the same policy. This avoids complications, for example if one vehicle is in an accident and its individual policy must be found, or if several individual policies all need to be paid and renewed on different dates.

Most policies will allow you to cover a range of vehicle types, such as cars, vans and motorbikes. If the fleet has not previously been insured, you may not be able to apply for a No Claims Discount. Nevertheless, your insurer should take into account any no claims discounts that your drivers have earned and any discounts from previously insured vehicles which now form part of the fleet.

Fleet insurance acts as a form of 'any driver' policy, allowing any of your employed drivers to drive any vehicle in the fleet. There are certain conditions which will usually apply: drivers may need to be over a certain age or have held a clean driving licence for a certain number of years. You may, however, be able to negotiate a discount on the cost of fleet insurance if you agree to limit the number of drivers entitled to drive a fleet vehicle, such as those with a certain number of years' driving experience. You will be required to declare the drivers' convictions and claims history to ensure that the cover is valid.

Fleet insurance is available in the conventional levels of car cover: third party, third party fire and theft and fully comprehensive insurance. Some exclusions may apply, but, as fleet insurance is tailored to businesses, cover can usually be customised to meet your specific needs much more easily than with a personal, single-vehicle insurance policy. Many insurers will offer the flexibility to mix-and-match the type of cover you require. For example, an old van could be insured against third party liability only, whilst your brand new car has fully comprehensive insurance.

It is important to shop around for fleet insurance, and ensure that the policy you choose provides the cover you need. Many insurance providers will give you the opportunity to send them a 'needs statement' detailing the way in which the fleet is used and how important particular vehicles are to your business; this enables the insurer to provide you with the appropriate level of cover and offer you the most appropriate deal.