When a business has multiple vehicles, managing separate insurance policies can be complicated and confusing. Fleet insurance is an easier way to insure two or more vehicles and could save you the headache of multiple policies – while also saving your business money.
What is Fleet Insurance?
Fleet insurance is an insurance policy that covers multiple vehicles within a fleet, which can include company cars, vans, or HGVs. It is an alternative to insuring each vehicle individually and often provides better value for money, as insurers will often provide discounted rates when insuring an entire fleet.
Fleet insurance is suitable for any type of business and most policies are available if you have two or more vehicles in your fleet. So even if you have a small operation, you could save money with fleet insurance.
Fleet Insurance vs Individual Policies
Taking out fleet insurance is typically cheaper than individual policies, making it a smart way to manage the budget of your business or reduce running costs. Often, any no claims discount will apply across the fleet too, which adds to your savings.
As well as reducing the cost of insurance, switching to a single fleet policy will cut down on paperwork and mean there is only one renewal date to remember. It also means that, should a vehicle be involved in an accident, you know exactly which insurance company to contact.
You can also choose to cover any driver to drive any vehicle, which is handy if you have pool cars which are used by multiple employees or you have a high turnover of staff. This means any employee can drive any vehicle in your fleet as long as they meet the policy requirements and are authorised by the company.
Fleet insurance usually offers the option to add further vehicles to the policy in future too, so it will provide the flexibility you need if your business is growing.
How is a Fleet Insurance Premium Calculated?
Like an individual policy, the premium you pay for fleet insurance will depend on a number of different factors. This includes the size and age of the vehicles in the fleet, the drivers of the vehicles, and their overall safety record. Any previous incidents or outstanding claims will also be considered.
The type and location of your business could affect the premium too, but you can still expect to pay less for fleet insurance than you would to insure the same number of vehicles individually. You may also find that discounts increase as you add more vehicles to the policy.
Working with an insurance broker with experience in fleet cover will give you access to the best deals for your business. Using a broker will also ensure that the policy you pick offers the cover that your company needs, however long you spend out on the road.
How Does Pay As You Go Fleet Insurance Work?
At Insurance 4U, we’ve partnered with Zego to offer pay as you go fleet insurance policies to our customers. Priced per mile, this usage-based insurance means your business only pays for the cover it needs when vehicles are on the road, which is a cost-effective solution if your workload tends to fluctuate.
A pay as you go policy allows you to easily add or remove vehicles without admin fees and save up to 80% when a vehicle is off the road. This flexibility means you can expand your fleet to meet demand or save money during quieter periods, helping your business enjoy better financial stability.
A popular option with private hire companies, tradespeople, and couriers, usage-based fleet insurance is also available for e-bikes and e-scooters in the delivery industry.
Find Out More About Insuring Your Fleet
If you have two or more vehicles to insure and want a cost-effective policy that will save your business money (and paperwork), get in touch with Insurance 4U to speak to one of our experienced team. We compare cover from the leading providers to find the best deals for your business, so you can keep your company moving forwards with the cover you need at a competitive price.