Fleet Insurance Meaning

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The purpose of fleet insurance is for companies that own 2 or more vehicles to protect multiple drivers and the owned vehicles against loss or damages, including the legally required third-party coverage.

Fleet policies have the advantage of including multiple vehicle types and combining coverage under one single policy. This allows companies that use different vehicles such as cars, trucks, or vans and insure everything together. It also eliminates the need to track individual policy renewals and keep up with separate monthly premium payments.

As fleet policies offer protection for multiple vehicles, it can be cheaper for companies than insuring each car or van individually. The costs of monthly premiums for fleet insurance will differ from company to company, depending on requirements. The number, age, and type of vehicles to be insured, amount of driving performed, and the number and age of drivers will all impact the policy premiums.

Fleet insurance comes in different forms for specialised businesses. A special policy may be required for companies that are using equipment different from standard cars, motorbikes, and vans. This can include businesses like:

  • Taxi firms
  • Courier companies
  • Light haulage carriers (vehicles under 3.5 tons)
  • Minibus transportation
  • Hazardous goods carriers

How do I find cheap truck fleet insurance?

To compare motor fleet insurance quotes for a business, it can be helpful to visit a comparison site like NimbleFins to assess different policies. Information about vehicles and the amount of coverage required can be entered, and quotes from multiple providers can be obtained relatively easily. This can help you find the best deal and premium pricing for your business.

If you operate a haulage firm involved in the transportation of goods and has trucks and vans under 3.5-ton weight, you will need to obtain fleet coverage for light haulage. This fleet insurance is designed to cover larger vehicles and drivers during transportation operations.

When shopping for insurance to cover light goods vehicles, it is best to shop around. There are many providers of light haulage fleet insurance, but not all policies will be the same. In addition, premiums and excesses will vary between providers, and there may be different conditions or requirements depending on the policy chosen.

The minimum number of vehicles needed to obtain a fleet insurance policy is two, and additional vehicles may be added as needed. For larger companies, policies provide coverage up to a total of 500 vehicles.

Fleet insurance – who can drive?

Motor fleet insurance allows different drivers to operate company vehicles and the policies fall into two types.

These are:

  • Named driver policies
  • Any driver policies

A ‘named driver’ policy is often used by smaller companies that know exactly who will be operating their vehicles at any given time. For example, drivers that are permitted to use cars or vans will be named on the policy and will be the only drivers legally allowed to drive the vehicles.

An ‘any driver’ policy is just as it sounds. Any driver, with the permission of the company or its directors, can operate company vehicles under the insurance policy. This type of policy is used by larger companies that have multiple vehicles and find that a named driver policy is too restrictive for their purposes.

Driving a company vehicle means that it must be used for business purposes only and not for personal use, and agreements may need to be signed to that effect. In addition, any miles travelled will need to be documented and the purpose of the trip recorded on a business mileage log.

Does a fleet insurance claim affect normal insurance?

Having an accident of any type, whether you are at fault or not at fault will still need to be declared when buying personal car insurance. This is because providers are assessing risk levels based on driving history regardless of who held the insurance policy at the time of the incident. Fleet insurance protects businesses from damages and losses arising from accidents, but that does not mean that drivers are without liability for any incidents.

Even if accidents happen while travelling for legitimate business reasons, the driver is still responsible for the vehicle’s safe operation. Unfortunately, any accidents that happen while operating a company vehicle have the power to affect personal insurance and possibly increase premiums regardless of who was at fault. For personal insurance, policyholders will be asked if they have had any accidents or incidents in the past five years, including any that happened while driving a company-owned and insured vehicle.

Drivers have a legal obligation to be truthful about their driving history when reporting their driving history. While it can be tempting to avoid mentioning any accidents that occurred while operating a company vehicle, this could be viewed as purposeful non-disclosure by the insurance company and may void the policy. Therefore, all accidents and incidents should be included when obtaining a new insurance policy, even if premiums will be impacted.

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