(KnowRisk)
29 November 2017

While it isn’t a compulsory insurance, fleet car insurance is designed specifically for commercial vehicles — which is how it is different to regular run-of-the-mill car insurance and also how it might be relevant to your business.

If you own vehicles that you or other employees use as part of your business, it goes without saying that those vehicles should be insured in some form or another. However, fleet insurance might be of particular value to you as a business owner as it often comes with benefits and savings.

The basics 

As we said before, this type of insurance is actually really straightforward. Here are the most pertinent things for you to know:

• While some insurance companies have a set minimum number of vehicles (usually between 8-12) required in order for your business to qualify for commercial fleet insurance, most insurance companies will work with you to tailor a policy to meet your specific business needs.
• Just as with regular car insurance, you will usually have a choice between comprehensive, third party fire and theft, and third party only insurance cover for each vehicle you wish to insure.
• Some insurers cater more to small-to-medium enterprises, while others are more relevant to larger businesses where fleet insurance is concerned, so do some research to find an insurer that is best for the size of your business.
• Typically, fleet insurance is group rated rather than vehicle or driver rated, which makes it cheaper for businesses. Insurers will general look over your total loss history for the past five years and determine what the rate should be for your fleet.
• It’s more efficient — with only one policy per fleet, there is less paperwork and is a lot easier for businesses to manage. Insurers are generally only concerned by the total number of cars on your policy, not the type of car and will take note of the number at the end of each year.

What types of vehicles can be insured?

Vehicles that can typically be insured as part of a business fleet include:

• Vehicles that are used for business and are driven by sales reps or management personnel
• Any delivery vehicles — including heavy transport vehicles
• Smaller commercial vehicles
• Plant and equipment
• The personal cars of the business owner

How do I know if fleet car insurance is relevant to me and my business?

The best way to know if fleet car insurance is relevant to you and your business if you are unsure is to seek professional advice, so contact a broker or insurance professional for more information.

Discuss the vehicles you use as part of your business and seek their advice as to whether or not it is worthwhile you investigating acquiring fleet insurance in place of car insurance. Make sure that if you do decide to purchase a policy that you get a range of quotes from different insurers and that you read the PDS carefully so that you are aware of any policy definitions and exclusions, as well as what you should do in the event you need to make a claim.