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What is Fleet Insurance?

Last updated : September 2, 2024
reduce fleet cost

Fleet insurance allows you to cover two or more of your business vehicles under a single policy. If you have multiple vans or other company vehicles, fleet insurance consolidates coverage into one policy, rather than insuring each vehicle separately.

With a single fleet insurance policy, all vehicles share the same renewal date and coverage level. This simplifies fleet management by eliminating the need to track multiple renewal dates or coverage types.

Additionally, fleet insurance can save you a significant amount of money, as individual policies for each vehicle are usually more expensive. To provide you with all the details, we’ve compiled answers to the most frequently asked questions about fleet insurance.

Who can get fleet insurance?

Fleet insurance is available to any organisation with two or more vehicles, regardless of the type of business. This means that no matter what your company does, you can be covered by fleet insurance.

What does fleet insurance cover?

Fleet insurance covers your vehicles and drivers in the event of an incident or theft. It also includes liability coverage for damage to other vehicles if one of your drivers is at fault in an accident.

What doesn’t fleet insurance cover?

Generally, fleet insurance does not cover damage caused by wear and tear, uninsured goods in your driver’s vehicle, electrical or mechanical failures, theft from vehicles in cases where goods were left on display, or theft where doors were left unlocked.

Can anyone drive on fleet insurance?

Unlike individual policies, fleet insurance covers any licensed driver. This means that anyone can drive the vehicles, assuming they have permission from the organisation.

How many vehicles do you need for fleet insurance?

To qualify for fleet insurance, you need at least two vehicles, whether a LGV or HGV. The maximum number of vehicles covered under a single fleet policy varies by provider, with some allowing up to 1,000 vehicles. However, each provider has its own minimum and maximum limits for the number of vehicles you can insure.

How is fleet insurance calculated?

Fleet insurance is calculated based on several factors, including the size of the fleet, the types of vehicles, the average age of the drivers, who drives specific vehicles, and the fleet’s claims history. If your fleet has been involved in many incidents with numerous outstanding claims, your premiums will be higher.

What’s the minimum age for fleet insurance?

Depending on the insurer, an employee must be at least 21 or 25 years old to be covered under a fleet insurance policy without being listed as a named driver. Younger drivers also have a higher excess applied while driving.

What are the benefits of fleet insurance?

  • Cost savings: Insuring multiple vehicles under a single policy is typically less expensive than insuring them separately. This is because fleet insurance often includes quantity-based discounts, making it extremely cost-effective if you have five or more vehicles.

  • No-claims discounts: You’ll be entitled to discounts if you don’t make any claims. These savings can be spread across the fleet, helping you to further reduce fleet costs.

  • Driver flexibility: As long as drivers meet the policy requirements, they can drive any insured vehicle. Additionally, you can easily add more vehicles as your organisation grows.

  • Simplified management: Managing insurance for multiple vehicles is easier with a single policy, as you only have one renewal date to track.

What are the disadvantages of fleet insurance?

  • Increased costs for high-mileage drivers: The more your vehicles are on the road, the higher the risk of accidents, which can drive up your premiums.

  • Impact of poor driving histories: Accidents, traffic violations, and claims history are all considered when calculating premiums, and having drivers with negative records can lead to higher costs.

  • Financial management challenges: Factors such as the number of claims, changes in fleet size, and fluctuations in mileage can cause your premiums to vary, making budgeting more challenging.

  • Potential for higher excess: Fleet insurance policies may come with higher excess compared to individual policies. This means you could pay more in the event of a claim.

How can I reduce my fleet insurance costs?

1. Use fleet management software

Implementing fleet management software allows you to monitor and gather data on your drivers' safety. This information can be shared with your insurance provider to demonstrate that you operate a safe fleet, reducing your premiums. Moreover, using electronic logging devices (ELDs) to collect data from your vehicles can further help in lowering insurance costs.

2. Invest in fleet dash cameras

Equipping your fleet with dash cams facilitates identifying and correcting risky driving behaviours such as harsh braking and over-acceleration. Dash cams also provide clear evidence in the event of a collision, which can reduce the cost of insurance claims and decrease your premiums. Furthermore, using digital tachographs supports effective management of driver hours of service to combat fatigue, guaranteeing compliance with regulations.

3. Monitor driver behaviour

Using in-cab coaching and monitoring your drivers to identify areas for improvement can ensure they adopt safer driving habits. Paired with providing driver training for those who need it further demonstrates your commitment to safety, which can positively influence your insurance rates.

Understanding the importance of fleet management technology in reducing insurance costs, we at MICHELIN Connected Fleet offer solutions that integrate all necessary components.

If you’re seeking software, hardware, and consultative services to lower your fleet’s insurance premiums, then be sure to make an enquiry into our solutions today.
MICHELIN Connected Fleet

Written by MICHELIN Connected Fleet

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