29 May 2024

What is fleet insurance and do I need it?

By Road Runner

Ideal for anyone running a business with more than one vehicle, fleet insurance allows you to cover all bases without having to take out multiple policies.

To find out more about what fleet insurance is and whether you might need it, read on.

What is motor fleet insurance?

Fleet insurance, sometimes referred to as ‘motor fleet insurance’, provides cover for multiple vehicles used within a business. This means business owners don’t have to handle several different policies.

Generally, they’re designed to offer greater flexibility by allowing you to add new vehicles to your policy with ease. For businesses that often rely on multiple vehicles, such as those in the motor trade, construction, courier or other industries, this can save a huge amount of admin time.

Depending on who you get fleet insurance from, the following types of motor vehicles can be covered:

  • Cars
  • Vans
  • Trucks
  • HGVs
  • Minibuses

It’s important to consider additional cover you might need, outside of fleet insurance, such as breakdown cover.

What is commercial fleet insurance?

Sometimes, fleet insurance is referred to as ‘commercial fleet insurance’. This simply refers to its use in commercial settings, where businesses with more than one vehicle can get fleet insurance to cover their fleet.

What is considered a fleet?

Each insurer may define ‘fleet’ differently, which is why it’s worth shopping around to find a policy that suits your circumstances. You may be able to secure fleet insurance for just two vehicles with some insurance companies, whereas some policies will insure as many as 15 vehicles.

Why get fleet insurance?

All vehicles used in your business will need to be insured by law, either through fleet insurance or single policies.

Having fleet insurance removes the inconvenience of handling multiple different insurance policies for your vehicles. In turn, this reduces admin and saves you time. The likelihood is that multiple drivers may need to drive vehicles within your business – which, again, is where fleet insurance can help make things a little easier. Keep things simple with just one renewal date and one premium.

Your fleet insurance will work similarly to regular vehicle insurance, where you can choose from varying levels of cover, from third party to comprehensive. You can be covered for accidental damage, theft, damage by fire or causing damage to a vehicle or property, among other things.

Do I need fleet insurance?

Any business with two or more vehicles is eligible for fleet insurance. As mentioned, you legally need to insure any vehicles within your business and it’s up to you whether you choose to do this with fleet insurance or with single policies.

Unless you own a business with two or more vehicles, fleet insurance isn’t something you’ll need to consider.

What dictates the price of fleet insurance?

Certain factors will dictate the price of your fleet insurance. The nature of your business, the size of your fleet and the type of vehicles will be considered, as well as the value and security of your vehicles. It’s also worth noting that poor driving history from drivers in the business can result in you paying more.

You may also choose to carry a higher excess on your policy to reduce the premiums you pay. Bear in mind that this would result in you covering a higher portion of potential costs if you make a claim. Think about whether you want to include extras such as windscreen replacement, as you might find that issues like these are cheaper to fix yourself.

It can also be helpful to shop around as you near the end of your policy. As convenient as it may be to auto-renew, you might be missing out on a better price elsewhere. Meanwhile, external factors can cause insurance premiums to go up but, sadly, this is out of your control. So long as you do your research, you can secure a price that works for you and your business.

Is it cheaper to get fleet insurance or choose single policies?

There is no set answer to this, so it’s worth doing your research to see what quotes you can find.

You may find that fleet insurance is cheaper than running several policies in one go, or it might work out cheaper to action individual policies. Make sure you weigh up your priorities; you might decide it’s worth paying a little extra for less hassle.

Get help from Road Runner

Fleet insurance is regularly used in the motor trade industry. To find out more about other types of motor trade insurance, such as premises, liability and road risks insurance, get in touch with Road Runner today.

We have over 25 years of experience in the industry and our excellent customer experience rating on Feefo highlights our commitment to helping our customers find exactly what they need. Request a quote online or contact us via phone or email to speak to one of our experts.

We’re with you.