How does fleet insurance work?

As a tradesperson, managing a fleet of vehicles is a critical aspect of your business. Whether transporting tools, materials, or your team to various job sites, your vehicles are essential. This makes fleet insurance not just a practical necessity but a strategic asset.

What is a fleet insurance policy?

Fleet insurance is a type of insurance policy that provides cover when you have more than one vehicle. Instead of insuring each one separately, it provides a single insurance certificate that covers them all.

What are the advantages of fleet insurance?

Insuring all your vehicles individually can be expensive. In most cases, fleet insurance will save you money.

Fleet insurance can also save time by reducing the amount of admin required when managing multiple vehicle insurance policies.

If your business experiences a relatively high staff turnover rate, having a single policy that allows for ‘any authorised driver’ will mean you no longer have to constantly update your insurance company of driver changes.

What is required when arranging fleet insurance cover?

To get fleet insurance, you will need a minimum of two commercial vehicles. Some insurance companies require you to have a minimum of three or even five vehicles, but you can also normally add vehicles during the middle of the policy term.

It is usual to get fleet insurance for business vehicles rather than domestic situations. However, some insurers may offer slightly different terms. It’s important to check what’s on offer and make sure it reflects how you operate as a business.

Who is covered by fleet insurance?

You normally have a choice as to whom will be covered. For example, you can cover any driver to drive any vehicle (often described as ‘any authorised driver’) or specify which driver will drive which vehicle.

Any authorised driver insurance can be a bit more expensive but does provide greater flexibility. It means anyone can drive, provided they have permission.

What does fleet insurance cover?

You may need insurance to travel from one permanent place of work to another, or you may need cover for a wider range of travel circumstances. However, all situations can be covered.

A fleet insurance policy will normally offer similar benefits to a standard insurance policy. For example, fully comprehensive fleet insurance will cover:

• your vehicles and drivers if a vehicle is involved in an accident or is stolen
• the costs of damage to other cars or property if it was your driver’s fault
• insurance cover for personal belongings
• cover for different vehicle classes: vans, HGVs, quad bikes, tractors, 4WDs, trailers and more.

While breakdown cover is often not included in fleet insurance as standard, it can be arranged. You will need to speak to your insurance company about this.

Are there any age restrictions for fleet insurance?

Any driver who has an appropriate driving licence can be included in a fleet insurance policy. However, there may be certain conditions for drivers under 25.

How much does fleet insurance cost?

This will depend on multiple factors, such as:

• the number of vehicles
• the average age of your vehicles
• your drivers
• your claims history.

Other factors that are taken into consideration include:

• the industry you work in
• your location
• the types of vehicles you have.