The Different Types of Fleet Insurance

Sunday, October 15, 2017

Fleet insurance is a type of cover that enables you to cover multiple vehicles, of varying type and values, under one policy. This comes with some key benefits such as making it easier to manage a fleet as well as reducing the cost of cover.

Below are the different types of fleet insurance that are available.

Fleet insurance for families

Although fleet insurance is very often taken out by businesses, that doesn’t mean it’s strictly used for commercial purposes. There are a number of families that have 3 or more vehicles and it’s possible to insure them together by getting a family fleet insurance policy. A family fleet policy can be particularly useful for younger drivers who might not be able to afford their own individual policy.

Fleet insurance for individuals

If you own a collection of cars then you can get them insured together on a mini-fleet policy. Car collectors often have a collection of classic or super cars that might be very expensive to get individual policies for so it’s definitely worthwhile getting them insured together instead.

Fleet insurance for businesses

The most common type of fleet insurance is commercial fleet insurance. It is taken out by all kinds of businesses from taxi and trucking firms to supermarkets and haulage firms.  Because businesses often have dozens, if not hundreds of vehicles that they need to insure together, then fleet insurance makes the most sense.

How the cost of fleet insurance is calculated

Below are some of the factors that affect the cost of a fleet insurance policy –

  • The number of vehicles in the fleet – The size of the fleet will certainly make a difference to how much the policy costs. Larger fleets mean more chance a claim being made and therefore you can expect the price to reflect this.
  • Named drivers – The named drivers on a policy will also affect its cost. Older more experienced drivers with no convictions are usually the cheapest to insure.
  • Value of the vehicles – The type of vehicles being insured and their value is another big factor that affects the cost of fleet insurance.
  • Security – How secure the vehicles being insured are will also impact cost. Therefore it’s a good idea to take any steps you can to improve security.