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What types of vehicle can be covered by Fleet Insurance?

Fleet Insurance products are available for most vehicle types, including cars, vans, coaches, and taxis. It also extends to non-road vehicles, such as Plant and Equipment, Tractors, etc. An ‘any vehicle’ policy can cover an assortment of vehicle types uses for different purposes and allows for changes in fleet makeup. Note however you need to check the specific cover offered by your policy as Motorbikes, Forklift trucks and excavators may be excluded, as may vehicles not registered in the UK.

Fleet Insurance for leased vehicles

When it comes to leasing a vehicle, insurance is not included so you will need to arrange this yourself. Leased vehicles must be insured from the day of delivery to the end of your contract on a fully comprehensive insurance policy. This covers the full cost of repairing any damage to your vehicle, in addition to third-party property, in the event of an accident.

Is Fleet Insurance mandatory i.e. required by law?

Because you must have motor insurance to drive a vehicle on roads in the UK, then yes, all fleets are legally required to have a minimum of Third-Party insurance cover.

If you use cars or other types of vehicles as part of your business, it’s imperative that you take out at least the minimum level of cover on every company vehicle. You don’t have to take out a Fleet Insurance policy – you can choose to insure each motor individually.

If you have an accident and cause damage or injure someone, or a vehicle or an animal or property, then having third party insurance will cover you. However, it would not cover repair costs to your own vehicle.

If you don’t have the resources in your business to manage and juggle several different policies then taking out a single policy for all the vehicles in a fleet is the only way to ensure that they all have identical levels of cover and help to reduce your admin burden.

What factors are considered when calculating Fleet Insurance costs?

There are a number of factors that impact the level of insurance premium you pay. Key considerations include; –

  • Number of vehicles in your fleet.
  • Age and condition of fleet vehicles
  • Where kept overnight and your location
  • Type and size of vehicle
  • How vehicles are used E.g. Risk factors (Do they carry dangerous waste for example?)
  • How often are they used
  • Driver age profile
  • Your risk management process
  • Claims history – those that have been paid out, and any that are still outstanding.
  • Your fleet claims history is one of the main factors that dictates premium levels. An insurer will request a copy of previous claims from which they will ascertain your claims frequency, what has been paid out in claims and any reserves for unsettled claims. The fewer outstanding claims you have, the better it is for helping to reduce your potential premiums.

    This history will be compared to your industry standards for your specific business and using statistical analysis, they will work out the risk you pose. If your claims prove to be higher than average, your premium will reflect this, or you may even be refused a quote if your claims history is significantly above average.

    Risk is the crucial factor for insurers when deciding premiums. We will work with you to provide evidence that you are taking proactive steps to minimise that risk where possible. Insurers will also look at your risk management process such as whether you use dash cameras, telematics, undertake driver training  and monitoring etc.

    Underwriters will also add on a percentage for ‘catastrophe’ risk; how much will depend on the size of the vehicles in the fleet (larger vehicles have the potential to cause greater damage in accidents) and how they are used.

    Insurers also use Claims Loss Ratio as another rating factor. This is a mathematical calculation that takes the total claims that have been made, divided by the total premiums. Each insurance company formulates its own target loss ratio, and it reflects the amount an insurer has paid out as claims as a % of the premiums paid.

    Factors related to the drivers, which may affect your premiums include:

  • Whether you want an Any Driver policy or a Named Driver policy.
  • The number of drivers on the policy.
  • The age of the drivers
  • Any previous driving convictions of any of the drivers
  • What happens if one of my fleet vehicles is involved in an accident?

    Unfortunately, any fleet accident can be costly, resulting in lack of productivity if a vehicle is out of service., plus potentially leading to an increase in future insurance premiums. In addition, fleet drivers may also have to be hospitalised, while your business may be held liable for damages and injuries.

    Fortunately, our helpful team at BCD are on hand to support you through the claims process. You can read more about “How to make a claim” in our article here.

    It is important to contact your insurance provider, or broker as quickly as possible following an accident. They can advise you on what cover you have and what you can claim for. If possible, take photographs at the scene and support the claim with any telematics data you may have such as dashcam.

    Are there any specific requirements for driver qualifications under Fleet Insurance?

    We can arrange a policy that is on an “Any Authorised Driver” basis, or any driver declaration, which allows anyone to drive an insured vehicle with the permission of the fleet manager or directors.

    If a driver has a conviction such as an SP30 speeding conviction and more than 6 penalty points, insurers may impose special terms for that driver as they pose an increased perceived risk.

    Factors related to the drivers, which may affect your premiums include:

  • Whether you want an Any Driver policy or a Named Driver policy.
  • The number of drivers on the policy
  • The age of the drivers
  • Any previous driving convictions of any of the drivers
  • How does the claims process work for Fleet Insurance policies?

    We provide our clients with a high-quality claims service, we endeavor to ensure that our customers claims are dealt with quickly and efficiently. Simply call our dedicated claims hotline.

    Going through a broker also offers the added security of having an intermediary on your side, who has the expertise, knowledge and experience to support you when dealing with your insurer in the event of a claim dispute.