Most businesses agree that fleet insurance is affordable for them when they have more than two vehicles. There are a large variety of plans and packages that they can choose from when learning how to insure a fleet of business vehicles. It offers many benefits to businesses, such as saving time and money; however, it does require the business owner to make sure they have the right coverage for their vehicles. When you own more than one vehicle that operates as a single unit, they can often be covered under a fleet insurance policy.
How do I know if I need to buy fleet insurance?
First, you must look at your business and decide what each vehicle is used for and how many vehicles you will need to cover. It is important to understand the different types of plans and policies that are offered with fleet insurance.
There are two main types of fleets: commercial and non-commercial.
Commercial fleet
When a vehicle is being used for business use, you might want to buy a commercial fleet policy. This type of policy covers all the vehicles in your fleet as well as those owned by employees. In this case, the commercial fleet policy is often cheaper than buying individual policies.
Non-commercial fleet
If you only have one or two vehicles, then it is likely that your commercial policy will be too expensive. For this instance, there are other types of options available to cover the fleet. The first option is to buy a non-commercial package policy that offers protection for all vehicles in your fleet under an insurance limit.
Why Would I Need It?
If you own a fleet of vehicles and want protection, this is probably one of the best options to cover your fleet. Here are some reasons why:
- It’s often cheaper than buying individual policies for each vehicle in your fleet.
- More than 20% of fleets have more than 50 vehicles, so it should be considered by any business with more than two vehicles.
- When you add drivers to your car insurance, they will drive other people’s cars legally.
What Does It Include?
Fleet insurance includes all types of different businesses- not just commercial fleets. It might feel like there are too many options available when trying to find the right one for your business, but you don’t have to choose the first plan that you see. It’s important to research different plans and compare them. You can then decide what suits your business best based on the cost and features offered by each policy.
How To Insure Your Fleet of Business Vehicles
- Be aware of any exclusions in the policies: It’s always worth reading all the small print when buying insurance as once something is excluded from cover, it can be very costly to make a claim afterward.
- Keep fleet numbers low: This will save money and mean you can include non-owned vehicles (by employees) with no extra costs. Check whether third-party only or comprehensive cover is better for you.
- Talk to an insurance broker: They can help you find the best suitable policy for your business needs. They will also make sure it’s tailored toward your specific requirements and budget.
- Don’t forget about third-party insurance: This is required by law in some countries, so if you are looking to purchase fleet insurance, it might already be included in the policy- check with your insurance broker.
- Include lower mile limits on commercial fleets: This will reduce costs.
- Don’t add every vehicle you own to the policy: Only add those for business use. This means that you can exclude your car, van, or other personal cars from the fleet insurance plan while protecting the business vehicles.
- Avoid the “all-in” option: this will often include extras like personal accident cover and legal expenses, which you might not need for your business.
- Don’t go with the first policy you see, as it can be worth comparing quotes from several insurance companies: The best company isn’t always the one that offers the cheapest fleet insurance coverage. It’s important to consider all of your requirements before deciding.
Insuring a fleet of vehicles helps save time and money because it can be expensive to insure multiple vehicles used for different things. Not every policy works the same, so you must go over all of your options when finding the right fleet insurance policy for you and your business needs. It’s also very important to determine what type of coverage is necessary to determine which plan fits your budget best.
