Many companies rely on a fleet of commercial vehicles to complete daily business operations. Haulage & delivery services, and also construction companies are just a few examples of industries that may maintain a fleet of vehicles that are used in the day to day running of the business. For these companies, a commercial fleet insurance policy can sometimes be more affordable than insuring each of the vehicles individually.
What is Commercial Fleet Insurance?
You can purchase fleet insurance to cover liability risks for all of your company’s vehicles. These can include vans, buses, cars, and trucks from construction vehicles to tractor-trailers. Vehicles insured under a fleet insurance plan do not need to be used for the same purpose. For example, you can insure your construction vehicles and commercial vans under the same policy.
If you have a smaller business, you may be wondering how many vehicles constitute a fleet. The answer to this question can vary according to different insurance providers. While some may require a company to have more than five vehicles to purchase fleet insurance, some will allow this insurance for businesses with as few as three cars. Here at Insuremyvan.ie, we have great mini fleet policies that can be applied to fleets with as little as three vehicles.
What does Fleet Insurance Cover?
Fleet insurance will provide liability insurance coverage for all of your company’s vehicles in one policy. Often, these policies provide provisions to allow employees of your company to drive any vehicle in your fleet and be covered if they cause an accident. These employees need to be named when taking the policy out and additional drivers can be added mid-term.
At a minimum, this commercial vehicle insurance will provide enough collision and liability coverage. You can then add on other options such as increased liability limits, roadside assistance, uninsured motorist’s coverage and comprehensive coverage to protect against theft, etc.
Is Fleet Insurance Expensive?
The price range for fleet insurance policies varies greatly according to a number of factors. Naturally, the more vehicles you have on your policy, the more it will cost. Some other factors that can influence cost are as follows:
- The age and value of your vehicles: Purchasing used vehicles can save you money on insurance as they are less expensive to repair than custom or new vehicles.
- The intended use of your vehicles: Those who do service-oriented work, such as plumbers and lock-smiths, typically pay the least for insurance. Vehicles used for retail purposes, such as pizza-delivery cars and floral delivery vans, are in the mid-range for policy costs. Those who transport people or to deliver goods to other businesses pay the most.
- The type of vehicle: Passenger cars are less expensive to insure than vans. Likewise, trucks have a range of policy costs depending on the class they fall into. The three classes of trucks are light, medium and heavy duty trucks.
- Your chosen policy options: The more comprehensive your policy, the more it will cost. However, more comprehensive policies may save you from a major loss in the event of a serious accident.
How can I Save Money on Vehicle Fleet Insurance?
There are ways to reduce the cost of your fleet insurance policy without giving up or reducing your coverage. Often these come in the form of discounts. For example, if your drivers all have full clean driving licences, you may be eligible for discounted rates.
Another way to save money is to raise your excess amount. This means you will pay less in premiums, but will pay a higher excess amount when you file a claim. One thing to note is that while increasing your excess can make your commercial fleet insurance more affordable up front, make sure your business can afford to pay the deductible at the time of loss.
You can also save by combining policies. If you need various commercial insurance policies besides your fleet insurance, purchasing them through the same insurance provider can potentially reduce your premiums overall.
You can save money on your policy by maintaining effective safety standards, having safety and anti-theft equipment, and remaining claims-free. Be sure to mention all of these things to one of our fleet specialists when looking for a quote.
You can contact our specialist fleet insurance team on 01 660 6900 or you can fill out our quick Fleet Insurance Quote Form online. Our Specialist fleet insurance team only deal with fleet insurance and will be able to get you the best quote for your needs.